Full text of Federal Reserve Bank of New York Circulars : 8541. Withdrawal of Proposed Statement of Customer Rights Under the Right to Financial Privacy Act of 1978

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FEDERAL RESERVE BANK
OF NEW YORK
Circular No. 8541
March 22. 1979

WITHDRAWAL OF PROPOSED STATEMENT OF CUSTOMER RIGHTS
UNDER THE RIGHT TO FINANCIAL PRIVACY ACT OF 1978
To All Member Banks, and Others Concerned,
in the Second Federal R esent District:

The Board of Governors of the Federal Reserve System has withdrawn its proposed Statement of
Customer Rights under the Right to Financial Privacy Act of 1978. The text of the proposed statement
was contained in our Circular No. 8510, dated February 1, 1979. Following is the text of a statement
issued by the Board of Governors announcing the withdrawal:
[March £] withdrew a proposed Statement of Customer Rights under

The Federal Reserve Board today
the Right to Financial Privacy Act of 1978.

The Board acted after Congress on March 7 repealed a section of the Act which would have required
financial institutions to notify their customers of privacy rights.
The Act continues to require Federal agencies to notify customers about rights in certain
circumstances, and the Board said repeal of the section “does not appear to impair protections that the new
law gives to customers.”

Printed below is the text of the official notice regarding the withdrawal of the proposed statement:
Notice of Withdrawal of Proposed Statement
of Customer Rights Under the Financial Privacy Act
AGENCY:
ACTION:

The Board of Governors of the Federal Reserve System.
Withdrawal of Proposed Statement of Customer Rights under the “Right to Financial Privacy Act of

1978.”

SUMMARY:

By act of Congress, approved March 7, 1979, section 1104(d) of Public Law 95-630, the “ Right to
Financial Privacy of 1978,” has been repealed.
Accordingly, on behalf of the Board of Governors, I hereby withdraw the Board’s Proposed Statement setting
forth customers’ financial privacy rights, published for comment on February 2, 1979 (44 Fed. Reg. 6770.)
As a consequence of the repeal of section 1104(d), the Act no longer requires the Board to prepare a general
statement of customer rights, and no longer requires financial institutions to notify their customers of these rights
under the new law.
The Act continues to require Federal agencies to notify customers about certain rights under the financial
privacy law in ten different instances. Thus, repeal of the section 1104(d) requirements does not appear to impair
protections that the new law gives to customers of financial institutions.
Theodore E. Allison
Secretary of the Board

Questions on this matter may be directed to our Consumer Affairs Division (Tel. No. 212-791-5919),




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