Privacy Rules

If you provide loans or help consumers get financing or provide any other financial service, you must by law comply with complex rules protecting consumer personal information. That includes having a privacy notice (or "privacy policy") tailored to your business practices. But that's not all. LexAlign was designed to help companies understand their obligations under Federal and certain State privacy rules.

What to know: It's complicated and expanding

Financial Privacy Law affects a broad array of industries, including:

  • Retailers that help consumers get financing, like auto dealers
  • Financial advisors, like tax preparers, credit counselors, and financial planners
  • Lenders, and
  • Investment companies.

At the same time, privacy is one of the more complicated areas of the law because it spans multiple statutes and regulations. And that's just Federal privacy requirements. An increasing number of States have additional requirements. And the law is evolving rapidly. It is extraordinarily challenging to master, even for lawyers. As a result, suitable expertise is hard to find.

Are the requirements the same for all companies?

No, they're not. This is VERY important to know:

There is no suitable "one-size-fits-all" approach to Privacy Law.

The requirements vary dramatically depending on what you're using consumer information for, and the reasons you're sharing it with other parties. As a consequence, it's a mine field. Using a form privacy policy or copying one off another company makes no sense. You could get in big trouble for using a notice or policy that is not tailored to your business.

If you already have a privacy policy and consumer notice, it would be a good idea to test them against our tailored checklist and notice instructions.

What happens if you don't comply?

You could be subject to a Federal or State enforcement action, or a consumer class action.

Each time you fail to give a consumer a notice on time, or give an inaccurate or inadequate notice, or don't comply with any of the many other requirements, could result in a $1000 fine ($2500 for really bad cases), in addition to other costs.

Simply put, you can't afford not to comply.

Is there an easy way to find out what you're required to do?

Thankfully, now there is. Previously you would have to pay an expert hundreds or even thousands of dollars to investigate your practices and provide you with appropriate, tailored policy manuals, consumer notices, checklists, audits, training materials, etc.

With LexAlign, you can get policies, checklists, guides, and notice instructions, all tailored to your business and at a small fraction of the cost and time an expert would require. And it's easy: it's automated and available online, at any time, and no prior knowledge of the law is required.

Simply sign up for an account and answer a few, simple questions. There's no upfront charge. You get to pick which products you want. The price depends on how complicated your activities are under the law. A simple operation will pay a simple price.

Our online apps and products are industry-specific. If you don't see Federal Financial Privacy on your Topics page, simply contact us.