How to Have a Checking Account With Some Degree of Privacy
November 14, 2009
Your Checking Account, Your Privacy Rights
Remember the days when you could sign up for a checking account at a new bank without worrying about where private information like your name, address, and even your account balance might end up?
Those days are mostly over.
If maintaining a high degree of privacy is an important part of your checking account experience, you must take action to make that clear to your bank. Don't count on the bank to maintain your privacy for you.
Privacy Rights and Realities for Checking Account Customers
For a bank, your information is very valuable. But that does not mean that banks are out to abuse your privacy. Understanding where your information may end up can calm fears and keep the discussion rational. According to federal privacy laws, banks can give information to three categories of entities:
1. Affiliated companies.
2. Joint marketing partners.
3. Unaffiliated third party companies.
When you're starting any kind of account at a new bank, whether it's a checking account, savings account, or money market account, explore the policies of the bank regarding information distribution to each of these three entities. Keep in mind that what you consider a violation of privacy, some banks consider a favor to you. For example, a bank may use information from your money market account to refer you to an estate planner or to offer new products or bank rates that can meet your savings and investment goals.
As of now--though new legislation is being discussed--third-party unaffiliated companies are the only entities that you can completely prevent from getting your information.
Don't Discard Those Opt-Out Forms
The first thing you can do if you don't want your information shared with unaffiliated companies is to opt out of those arrangements. But in order to be binding, opt-out agreements must be in writing.
By law, banks must send opt-out forms to your home address. Most people throw away these forms without reading them. If you're the private type, don't throw away those forms without reading them. Fill them out and file them with your bank.
"The Customer Is Always Right"
Besides filing those opt-out forms, the next step you can take to make sure your information is not misused is to contact your bank with a certain powerful saying firmly in your mind: "The customer is always right."
Especially if you have a savings account or money market account at a bank in addition to your checking account, it is likely that putting in a phone call to your bank and speaking with them about your privacy concerns may yield results. If you maintain accounts at a customer-focused bank, there are internal control systems that banks can utilize to keep you, as a customer, happy and still a customer.
If lack of bank account privacy is an issue that can ruin your banking experience, tell your bank directly. After all, your satisfaction with your bank is not just about checking or savings account interest rates. Let them know how you want your information used or not used and ask your bank to respect your wishes. Many banks will do exactly that. So take charge of your privacy and speak directly with your bank.
