Legislation and Compliance

 

Various privacy laws have been enacted to ensure the confidentiality of client’s information. There have been severe penalties for failing to comply with these laws.

 

 

HIPAA (Health Insurance Portability & Accountability Act) :Essentially this is an act that has been passed ensuring that patient records remain private and do not become part of the public domain. The government imposes severe penalties for not complying. Clicking on the link above will give a more detailed description.

GLB (Gramm Leach Bliley) : This law was passed with the intention of forcing financial institutions to respect and secure the privacy of customer’s records. It covers a wider range of companies but essentially has the same goal of keeping customer information private. Click the link above to get a more detailed description.
FACTA (Fair & Accurate Credit Transaction Act): A revision of the Fair Credit Recording Act) signed into law December 4, 2003. It contains a number of rules designed to combat consumer fraud, identity theft and similar crimes. This act has provisions designed to help its victims. Generally, the act requires the destruction of sensitive consumer information. Click the link above to get a more detailed description.

Conclusion: Clearly the government is very serious about eliminating the problems arising from careless handling of customer information. These laws are a step in that direction in addition to the fear of lawsuits from this problem.