California Governor Signs 'Opt-In' Privacy Bill Into Law

"By signing this bill, were putting consumers in control of their intimate financial DNA," Davis says. "You wouldnt let a stranger riffle through your wallet or pocketbook. Just as well, we shouldnt let financial institutions look through your checkbook or credit card spending habits."

The American Council of Life Insurers, Washington, says the final version of the bill will hurt life insurers ability to meet consumers needs.

The ACLI also objects to the idea of letting each state set its own privacy standards.

"A uniform federal approach, rather than a patchwork quilt of state laws, is needed," says ACLI President Frank Keating.

The ACLI and other financial services trade groups are hoping that Congress will impose uniform privacy standards when it reauthorizes the federal Fair Credit Reporting Act.

Some California financial services companies say enactment of S.B. 1 is better than an alternative that might have been.

A coalition of consumer groups, Californians for Privacy Now, was campaigning to put a strict financial services privacy initiative on the states March 2004 ballot.

Some California financial services organizations took a neutral position on S.B. 1 in exchange for an agreement that Californians for Privacy Now would end the initiative campaign. Now that Davis has signed S.B. 1, the coalition has ended the California initiative campaign.

Reproduced from National Underwriter Life & Health/Financial Services Edition, September 1, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.