Number: RL31758
Title: Financial Privacy: The Economics of Opt-In vs. Opt-Out
Authors: Loretta Nott, Government and Finance Division 
Abstract: When the 108th Congress revisits the preemption provision this year, there will be two key issues to consider. First, given the potential consequences for the financial services market and consumers in the absence of an extension, should Congress extend the preemption provision of the Fair Credit Reporting Act? Second, if Congress decides to renew the law and continue to set a federal standard, it could consider retaining the current opt-out requirement of adopting an opt-in policy. This report focuses on the second issue by examining the economics of financial privacy in the context of the opt-out/opt-in debate, and considers the implications of a regulatory change.
Pages: 8
Date: Updated February 12, 2004