What is the Privacy of Consumer Financial Information Act?

The Privacy of Consumer Financial Information Act, also known as Regulation P, governs the treatment of nonpublic personal information about consumers by the financial institutions. It:

(1) Requires a financial institution to provide notice to customers about its privacy policies and practices;
(2) Describes the conditions under which a financial institution may disclose nonpublic personal information about consumers to non-affiliated third parties; and
(3) Provides a method for consumers to prevent a financial institution from disclosing that information to most non-affiliated third parties by “opting out” of that disclosure.