LANSING – State Representative Jon Switalski (D-Warren) today introduced a plan to increase protections for Michigan consumers by requiring financial institutions to secure account holders' permission before disclosing their private financial information. The plan comes on the heels of additional consumer protections and tougher penalties for identity thieves passed by the House last week.
"Our residents shouldn't have to read the fine print to keep their records private and out of the hands of strangers," Switalski said. "Identity theft is one of the fastest growing crimes in the country, and our residents' personal information must be guarded. Especially in these tough economic times when we're all watching our hard-earned money closely, we must make sure our residents have the tools they need to better protect themselves and what they've worked so hard for."
Under current Michigan law, financial institutions are allowed to share an account holder's private personal information unless he or she has previously taken the initiative to ask that it be kept private. Many consumers are largely unaware of how often financial institutions share this information.
Switalski's bill will allow savings banks to disclose private personal information only if an account holder gives written consent to do so. The lawmaker's bill is part of a package of bills that will require that account holders at credit unions, banks and savings and loans also be asked for the same written consent in order to disclose information to outside sources.
"There is no reason that financial institutions should be allowed to give out consumers' private information without consent," Switalski said. "This bill gives citizens the upper-hand when managing their personal information."