EthicsQuestion 316 of 400

Under GLBA, before a financial institution shares a consumer's NPI with certain nonaffiliated third parties, the consumer generally must be given:

a.A cash payment
b.A guaranteed lower interest rate
c.A privacy notice and, in many cases, the right to opt out
d.Ownership of the third party

Explanation

GLBA requires a privacy notice describing information-sharing practices and, for many nonaffiliated sharing situations, an opportunity to opt out. Consumers are not owed a cash payment, a rate reduction, or ownership of the third party in exchange for their NPI.

Law Reference: Gramm-Leach-Bliley Act (Privacy)

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