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Congressman Dave Trott

Representing the 11th District of Michigan

Trott’s Legislation Modernizes Auto Lenders’ Privacy Notification Process & Increases Consumers’ Access to Privacy Info

July 12, 2017
Press Release

WASHINGTON – Today, U.S. Representative Dave Trott (MI-11) issued the following statement after the Committee on Financial Services Subcommittee on Financial Institutions held a hearing on the Privacy Notification Technical Clarification Act (H.R. 2396), bipartisan legislation he introduced to modernize the privacy notification process of auto lenders and increase consumers’ access to lender privacy policies:

“This critical legislation finally allows auto lenders to modernize their privacy notification process, cutting down on the high compliance costs they’re forced to pass along to consumers while increasing consumer access to important privacy information. In Michigan, the heartland of our nation’s domestic auto industry, legislation that decreases the burden placed on auto manufacturers and provides greater access to information for automotive consumers is a win-win.”

Rep. Trott’s Privacy Notification Technical Clarification Act has garnered bipartisan support from Reps. Wm. Lacy Clay (D-MO), Brad Sherman (D-CA), Blaine Luetkemeyer (R-MO), Gregory Meeks (D-NY), and Luke Messer (R-IN).

Financial institutions must issue privacy notices to consumers upon issuance of the consumer’s first loan with that financial institution. In December 2015, legislation was signed into law that lifted the previous requirement that financial institutions mail this same privacy policy annually. This legislation allowed financial institutions to modernize their privacy policy notification process, requiring institutions mail privacy policy notices only if the policy has changed from the previous year.

However, this legislation unintentionally omitted some loan insurers from this modernization option, including auto lenders. The Privacy Notification Technical Clarification Act would fix this oversight and extend this same modernization option to those lenders previously omitted, including auto lenders. Under this legislation, auto lenders that opt out of the mailed annual privacy notification requirement must make their privacy policy readily accessible on their website and available in hardcopy upon request.