Can you sue a bank for disclosing personal information?
If a financial institution or the government fails to follow the RFPA, you have the right to sue for both injunctive relief and damages. The legal damages you can seek for RFPA violations include: Actual damages.
Banks are prohibited from providing nonpublic information to any person or company that is not affiliated with the bank, such as car dealers. However, there are some exceptions that allow banks to share information to entities not associated with the bank, providing that the bank includes them in their privacy policy.
The release of information to anyone without permission of the account holder is a violation of the bank's privacy policy and grounds to sue the bank for breach of their duty of confidentiality.
What if you think your privacy rights were violated? You can make a complaint under the California law to the California Attorney General or to a state or federal agency that regulates financial companies. The agency may investigate your complaint and may take action against the financial company.
Invasion of privacy is a tort based in common law allowing an aggrieved party to bring a lawsuit against an individual who unlawfully intrudes into his/her private affairs, discloses his/her private information, publicizes him/her in a false light, or appropriates his/her name for personal gain.
The Right to Financial Privacy Act of 1978 protects the confidentiality of personal financial records by creating a statutory Fourth Amendment protection for bank records.
GLBA permits a bank to disclose nonpublic personal information about a consumer to a nonaffiliated third party to enable that party to perform services for the bank, including marketing the bank's own products or those offered jointly by the bank and another financial institution.
Anyone who has been affected by a data breach may have the right to file a lawsuit, including individuals, businesses, or organizations that have suffered harm due to the breach.
Two federal laws cover your personal financial privacy: The Fair Credit Reporting Act (PDF) and the Gramm-Leach-Bliley Act.
Harassment by debt collectors
It's harassment when debt collectors: Place repetitious phone calls or use electronic communications – such as text, email, and social media messages – intended to harass, oppress, or abuse you or any person. Use obscene or profane language. Threaten violence or harm.
What is privacy violation?
Generally speaking, a privacy violation occurs when sensitive information such as an individual's location, associations or communications are linked to a specific individual. From: Pervasive and Mobile Computing, 2019.
RBI found a range of compliance violations by banks from misclassifying fraud cases, failure to report fraud cases, breaching recovery agent guidelines, neglecting due diligence on project viability, and exceeding intra-group exposure limits.
Several cases were combined before the Supreme Court in California Bankers Assn. v. Shultz, 416 U.S. 21 (1974), which ruled that the Act did not violate the Constitution.
Those four types are 1) intrusion on a person's seclusion or solitude; 2) public disclosure of embarrassing private facts about a person; 3) publicity that places a person in a false light in the public eye; and 4) appropriation, for the defendant's advantage, of the person's name or likeness. 1.
Invasion of privacy involves the infringement upon an individual's protected right to privacy through a variety of intrusive or unwanted actions. Such invasions of privacy can range from physical encroachments onto private property to the wrongful disclosure of confidential information or images.
Protecting Privacy
Privacy violations include gathering information on individuals engaging in constitutionally protected activities, improperly accessing or sharing a subject's information, or sharing a subject's record without a valid law enforcement purpose.
The bank must disclose information such as the following: Interest rates. Crediting and compounding policies. Service fees.
This law prohibits a financial institution from disclosing a consumer's nonpublic personal information like your Social Security number, income, and outstanding debt to companies that are not related to the financial institution.
Typically, the only parties that can check your bank statements or your account information are the account owner(s), authorized account managers and bank professionals. Banks take great care to maintain the privacy and security of their customers' personal information.
In the banking industry, it's a statement provided by a financial institution—to either a consumer or commercial account holder —that outlines all pertinent information. Disclosures are commonly provided to account holders during the establishment of a new account or loan.
What is considered nonpublic personal information?
For example, nonpublic personal information may include names, addresses, phone numbers, social security numbers, income, credit score, and information obtained through Internet collection devices (i.e., cookies).
Financial Privacy Laws: Background
The Court ruled that such records are the property of the financial institution, not the customer. This also meant that banks were not required to disclose when they provided a consumer's records to the government or law enforcement.
There's No Set Data Breach Amount, But…
It's important to note that there's no one “set,” fixed amount for how much a person could receive from a data breach case. For example, there are so many factors that can go into it, such as the severity of the injury you suffered (typically financial damage but not always).
The business's lack of effort and failure to safeguard your personal information can cost you time and money, especially if you are the victim of identity theft or other fraud. To address any harm you endured, the law gives you the right to seek financial compensation following a data breach.
Identify the Reason for Suing: Banks can be sued for several reasons, such as violation of consumer protection laws, breach of contract, fraud, discrimination, or negligence. It's crucial to identify the specific legal basis for your lawsuit.
References
- https://www.enkash.com/olympus/receivables/virtual-accounts
- https://www.centralbank.net/learning-center/what-are-acceptable-forms-of-id-and-proof-of-address/
- https://www.quora.com/I-lost-my-wallet-my-debit-card-is-going-to-take-5-7-business-days-can-I-go-to-Wells-Fargo-and-withdraw-money-from-my-account-using-my-passport-can-t-find-a-clear-answer-online
- https://www.thelyonfirm.com/class-action/data-breach/
- https://www.bankrate.com/finance/credit-cards/check-and-change-billing-address/
- https://epic.org/the-right-to-financial-privacy-act/
- https://www.goldstarlaw.com/our-focus/invasion-of-privacy/
- https://wise.com/us/blog/wells-fargo-non-resident-account
- https://www.nerdwallet.com/article/banking/undocumented-immigrants-bank-accounts
- https://zenus.com/en/group/blog/how-to-open-a-bank-account-in-the-us-as-a-non-resident/
- https://help.virtualpostmail.com/article/224-proof-of-address-for-business-bank-accounts
- https://www.fkc.bank/blog/information-sharing-by-banks-is-highly-regulated-process/
- https://www.usatoday.com/money/blueprint/banking/bank-closes-your-bank-account/
- https://www.quora.com/What-happens-to-my-monthly-payments-when-I-change-my-debit-cards-billing-address
- https://www.helpwithmybank.gov/help-topics/debt-credit-scores/credit-scores-reports/credit-reports/credit-report-chex.html
- https://slothmove.com/does-changing-my-address-affect-my-credit-score/
- https://www.usnews.com/banking/articles/can-you-open-a-bank-account-with-just-a-passport
- https://www.nolo.com/legal-encyclopedia/physical-business-address-llc.html
- https://www.wellsfargo.com/help/online-banking/
- https://www.wellsfargo.com/savings-cds/kids-account-open-requirements/
- https://wallethub.com/edu/cs/chexsystems-score/13318
- https://www.pinelabs.com/blog/understand-VPA-its-meaning-full-form-and-benefits
- https://belalhamidehlaw.com/how-much-can-you-get-from-a-data-breach-lawsuit-approx/
- https://www.gobankingrates.com/banking/checking-account/how-open-bank-america-checking-account/
- https://help.convertkit.com/en/articles/2502494-alternatives-for-your-physical-address
- https://www.nerdwallet.com/article/banking/blocked-by-chexsystems-what-to-know
- https://management.org/how-to-open-a-business-bank-account-in-the-usa-remotely
- https://www.chime.com/blog/how-do-you-clear-your-chexsystems-report/
- https://england.shelter.org.uk/housing_advice/homelessness/how_to_open_a_bank_account
- https://www.sciencedirect.com/topics/computer-science/privacy-violation
- https://www.bolt.com/thinkshop/billing-address-and-shipping-address
- https://www.cnbc.com/select/what-to-do-if-denied-bank-account/
- https://www.fdic.gov/resources/supervision-and-examinations/consumer-compliance-examination-manual/documents/8/viii-1-1.pdf
- https://smartasset.com/checking-account/chexsystems
- https://www.consumerfinance.gov/ask-cfpb/what-is-harassment-by-a-debt-collector-en-336/
- https://www.moving.com/tips/change-address-checklist-who-to-notify-when-you-move/
- https://www.legalzoom.com/articles/do-you-need-a-virtual-address-or-a-virtual-mailbox
- https://www.forbes.com/advisor/banking/non-us-citizen-open-bank-account/
- https://www.virtualpostmail.com/blog/article/physical-address-mistakes-with-business-bank-account/
- https://rates.fm/how-to-change-your-billing-address-a-step-by-step-guide/
- https://www.indeed.com/q-no-social-security-number-jobs.html
- https://wise.com/us/blog/best-us-banks-for-foreigners
- https://www.usbank.com/bank-accounts/checking-accounts/what-you-need-to-open-a-checking-account.html
- https://www.thebalancemoney.com/how-to-clear-up-your-chexsystems-report-2386131
- https://en.wikipedia.org/wiki/Bank_Secrecy_Act
- https://suitsmecard.com/blog/the-troubles-with-opening-a-uk-bank-account-for-a-non-resident
- https://www.10news.com/you-can-get-200-when-you-open-a-new-chase-bank-checking-account
- https://www.forbes.com/advisor/banking/cannot-open-bank-account/
- https://www.alogent.com/banking-definitions/disclosure
- https://homework.study.com/explanation/what-happens-when-a-billing-address-is-incorrectly-entered-for-a-credit-card-transaction.html
- https://www.usestable.com/blog/how-does-a-virtual-mailbox-work
- https://consumer-rights.org/news/how-do-i-get-a-bank-account-after-being-blacklisted/
- https://www.legalzoom.com/articles/what-is-a-virtual-mailbox-and-how-does-virtual-mail-work
- https://bja.ojp.gov/sites/g/files/xyckuh186/files/Publications/Privacy-Brochure.pdf
- https://help.ifixit.com/article/179-what-is-a-billing-address
- https://money.com/what-do-you-need-to-open-a-bank-account/
- https://money.slickdeals.net/articles/banks-that-dont-use-chexsystems/
- https://www.sofi.com/learn/content/open-a-bank-account-without-id/
- https://www.shipit.co.uk/blog/how-to-open-a-us-bank-account
- https://www.pnc.com/insights/personal-finance/spend/what-do-you-need-to-open-a-bank-account.html
- https://financebuzz.com/easiest-bank-accounts-to-open-online
- https://www.sunnyavenue.co.uk/insight/what-bank-details-are-needed-to-receive-money
- https://www.gao.gov/blog/why-do-banks-share-your-financial-information-and-are-they-allowed
- https://redstagfulfillment.com/billing-address-vs-shipping-address/
- https://www.uh.edu/office-of-finance/vendor/vendor-setup-and-update-guide/19.pdf
- https://www.cusocal.org/blog/chexsystem-denied-checking-account
- https://wise.com/us/blog/bank-account-without-physical-address
- https://www.law.cornell.edu/wex/invasion_of_privacy
- https://www.gobankingrates.com/banking/banks/easiest-bank-account-to-open-online/
- https://wise.com/us/blog/easiest-bank-account-to-open-online
- https://www.usestable.com/blog/what-is-a-billing-address
- https://www.occ.treas.gov/topics/consumers-and-communities/consumer-protection/privacy/index-privacy.html
- https://www.investopedia.com/ask/answers/040715/what-should-you-bring-bank-open-checking-account.asp
- https://www.nerdwallet.com/article/banking/what-to-do-when-you-cant-open-a-bank-account
- https://www.caminofinancial.com/en/blog/business-finance/how-to-open-a-bank-account-in-the-us-without-an-ssn/
- https://www.businesstoday.in/latest/economy/story/how-banks-can-plug-compliance-loopholes-amid-rbis-penalty-blitz-402660-2023-10-19
- https://www.chase.com/personal/credit-cards/education/build-credit/opening-a-bank-account-with-bad-credit
- https://statrys.com/blog/what-is-a-proof-of-address
- https://www.worldremit.com/en/blog/finance/what-is-proof-of-address
- https://www.chexsystems.com/dispute
- https://www.helpwithmybank.gov/help-topics/bank-accounts/fees-terms/terms/terms-disclosures.html
- https://www.usnews.com/banking/articles/options-for-second-chance-checking-accounts
- https://www.legalzoom.com/articles/how-to-get-an-address-somewhere-you-dont-live
- https://www.consumerfinance.gov/ask-cfpb/can-i-get-a-checking-account-without-a-social-security-number-en-929/
- https://www.remitfinder.com/blog/best-banks-in-us-for-expats-and-foreigners
- https://www.creditsuite.com/blog/virtual-business-address/
- https://www.forbes.com/advisor/banking/best-banks-no-chexsystems/
- https://www.bossrevolution.com/en-us/blog/us-bank-account-for-non-resident
- https://www.monito.com/en/wiki/open-free-online-bank-account-without-id
- https://www.wafdbank.com/blog/banking-101/why-cant-open-bank-account-what-to-do
- https://www.quora.com/How-do-you-change-a-bank-account-address
- https://www.usa.gov/change-address
- https://www.lawampm.com/how-much-can-i-claim-for-a-data-breach/
- https://www.bankrate.com/banking/how-to-clear-up-chexsystems-report/
- https://wise.com/us/blog/chase-open-account-non-resident
- https://suitsmecard.com/blog/open-a-current-account-with-no-proof-of-address
- https://www.bankofamerica.com/deposits/applying-for-accounts-faqs/
- https://www.icicibank.com/terms-condition/request-for-address-change
- https://www.occ.gov/news-issuances/news-releases/2001/nr-ia-2001-101a.pdf
- https://www.linkedin.com/pulse/how-open-bank-account-us-non-resident-zenusbank-k3vaf
- https://www.passportindia.gov.in/AppOnlineProject/pdf/Circular_Add_Proof.pdf
- https://wise.com/us/blog/open-account-chase-bank
- https://www.experian.com/blogs/ask-experian/why-was-i-denied-a-checking-account/
- https://www.pettyson.co.uk/about-us/our-blog/549-change-of-address-checklist
- https://www.chase.com/personal/banking/education/basics/what-is-a-bank-statement
- https://oag.ca.gov/privacy/facts/financial-privacy/rights
- https://wise.com/us/blog/open-a-us-bank-account-non-resident
- https://www.findlaw.com/consumer/credit-banking-finance/bank-records-and-financial-privacy-laws.html
- https://www.westernunion.com/blog/en/us/can-you-open-a-bank-account-without-an-address/
- https://www.reallymoving.com/help-and-advice/change-of-address-checklist
- https://www.quora.com/Can-you-sue-a-bank
- https://www.natwest.com/banking-with-natwest/how-to/change-your-address.html
- https://www.nerdwallet.com/article/banking/how-to-open-a-bank-account-what-you-need
- https://www.lloydsbank.com/online-banking/profile-and-settings/change-your-address.html
- https://www.wellsfargo.com/help/checking-savings/open-close-account-faqs/
- https://www.checkout.com/blog/card-issuer-rejection-explained
- https://www.justanswer.com/law/308mg-recourse-compensation-gained.html
- https://gocardless.com/en-us/guides/posts/what-is-a-billing-address/
- https://money.stackexchange.com/questions/108815/will-change-of-address-affect-direct-deposit
- https://learn.cypruscu.com/how-to-know-if-you-have-a-chexsystems-record
- https://www.davincivirtual.com/blog/can-you-use-a-virtual-address-for-a-business-bank-account
- https://www.quora.com/To-open-an-LLC-bank-account-in-CA-Can-I-use-a-virtual-address-like-ipostal1-or-anytime-mailbox-or-virtual-office-space-such-as-Rague-for-keeping-my-home-address-private-for-safety-And-which-one-is-better
- https://www.chexsystems.com/optout
- https://www.cnbc.com/select/chase-total-checking-account-review/
- https://www.lloydsbank.com/mortgages/help-and-guidance/moving-home/moving-house-checklist.html
- https://www.financestrategists.com/banking/bank-account/how-to-open-bank-account-without-a-physical-address/
- https://www.postscanmail.com/l/california.html
- https://www.stimmel-law.com/en/articles/legal-right-privacy
- https://www.bankofamerica.com/student-banking/checking/
- https://www.bankrate.com/banking/reasons-to-be-unbanked-or-underbanked/
