Tough bank privacy law thrown out

A U.S. District Court judge on Tuesday struck down a portion of a California law that restricts banks from selling consumers' private information to their affiliates, ruling that the state law is pre-empted by federal rules.

The American Bankers Association, the Financial Services Roundtable and Consumer Bankers Association had sued California Attorney General Bill Lockyer, arguing that the federal Fair Credit Reporting Act already regulated their ability to sell such information to affiliates in other lines of business. Press-Telegram - News

Linked by shanmuga Wednesday, 5th October 2005 3:53AM