North Dakota Voters Reject 'opt-out' Law

dakota_kid writes "Congratulations to the North Dakotans at protectourprivacy.net! They succeeded in convincing more than 70% of North Dakota voters to repeal a law that allowed banks and other financial institutions to share (read sell) a customer's private information unless the customer contacts each institution and 'opts-out'. This effectively requires these institutions to obtain the permission of their customers before sharing their personal information, e.g., getting them to 'opt-in'. I know most people don't pay much attention to the activities of North Dakota, and perhaps bank privacy laws, but most of the United States has similar laws, and because of what the North Dakota voters did yesterday, civil rights activists in other states my follow suite. So, if that's you, get to work, you can do it!"

amazing!

[cheezus]

And I was all worried because I forgot it was election day until after the polls had closed (doh! i suck at doing my civic duty). That was the main issue I wanted to vote on.

I'm suprised that ND now has the tough privacy law. Some organization (no doubt funded by businesses like the banks) was running a LOT of television spots trying to scare us into thinking that having tighter privacy laws would "build a wall" around ND that would keep new business out. They also ran a cheezy one with a farmer on a tractor talking about how he trusts the local banks and credit unions, and there's no need to make even more new laws.

Hooray for the most backward (well, except for the deep south) state in the union doing something progressive for a change!

Re:amazing!

[anti-snot]

Heh. North!

Re:amazing!

[cheezus]

yes, i retract that statement. ND has a STATE bank and STATE elevator. Bunch of commies :)

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Link to article in ComputerWorld

[MacRonin]

"ComputerWorld" - N.D. voters side overwhelmingly with privacy [computerworld.com].

WASHINGTON -- In a vote with potential national implications, North Dakota residents overwhelmingly agreed yesterday to bar the sale of personal data collected by banks, credit unions and other financial services firms to third parties.

This is the first time that voters in a state have had the chance to toughen privacy protections set in the federal Gramm-Leach-Bliley financial modernization law, which allows financial services firms to freely share information without consumer consent.

Of the approximately 115,000 votes cast in yesterday's referendum, nearly 74% voted to require consumer consent before data is shared. The state elections board offered vote results [state.nd.us] online.

"This is the beginning of a consumer backlash against the sharing of information," said Avivah Litan, an analyst at Gartner Inc. in Stamford, Conn.

[ ... ]

Privacy advocates say the vote reaffirms opinion polls showing that customers want stronger privacy protections. "It's no longer speculation -- people want opt-in," said Chris Hoofnagle, legislative counsel at the Electronic Privacy Information Center [epic.org].

The vote comes at the same time Congress is considering legislation by U.S. Sen. Ernest "Fritz" Hollings (D-S.C.) that would preempt the ability of states to do what North Dakotan voters did yesterday.

"It's becoming clearer that preemption of state law is an attempt to prevent strong privacy protections," said Hoofnagle.

Not Surprised

[foo12]

I wasn't surprised in the least over the results of the measure. North Dakota was/is the last stronghold of the Nonpartisan League (NPL), a third party which is all but dead aside from the strange designation of North Dakota Democrats, D-NPL. In brief, the NPL was formed as response to abuses by out-of-state industry, specifically rail and milling interests --- obviously of consequence in an agrian state like ND --- and also out of state banking interests. The response was through socialization, which is why my students loans are from the literal Bank of North Dakota [banknd.com] --- literal because it's state owned.

Apparently that ol' NPL spirit hasn't died.

Well it's nice but it doesn't really matter

[Hellkitten]

Is there any law that prevents the banks from consistently not giving out loans to people that doesnt sign the opt in paper? How long would it take before people realize that "If I don't give them what they want they wont give me what I want". The best you can hope for is to only get worse terms

And expect this to happen. If I was a bank manager my thinking would go something like "This guy won't let me ask the other banks if about his credit history, he must have something to hide, better not give him anything!"

If people can't do without the service you provide simply deny it to anyone that doesn't opt in. If you provide something that people doesn't really need you'll se customers leaving if they are forced to opt in.

And with banks you're not very likely to se one bank letting people not opt in (for free), because then it'll get all the high risk customers

It's not about keeping your bank from asking.

[Jammer@CMH]

It's about keeping your bank from selling your financial history to whomever is interested. Banks can (and will) require you to allow them to read your credit report (and to write to your credit report) as a condition of applying for a loan. However, given the strong negativwe response, banks probably won't put a waiver in their paperwork that you would be *required* to complete.

Some banks may try it, depending on how much money they make selling consumer information. However, if you balk, I doubt that they would turn you away.

home city = Devil's Lake. Go D.L. Satans!

[overbom]

I think it would be hilarious if NoDak became the hacker-friendly state. I can just picture a bunch of farmers with their mesh grain co-op hats up high and a little crooked and hollywood stereotype hackers on opposite sides of a room. Sort of like prom, until that first brave person crosses across the floor and asks someone to dance. :-)

I suppose though, the only reason that I can picture this is because I'm weird.

Ya, sure you betcha

[hedon_elite]

Being a Fargo ND native, I can tell you I am not surprised. A lot of people here may be simple and naive, but threats from banks and other large companies don't frighten anyone anymore. The only reason their support centers and helpdesks are here is because of the low cost of living, which translates to lower wages. No, their not going anywhere, unless the can find people in Taiwan to man phones and can speak perfect english. BTW, for those of you who question our technical acumen, Pat Volkerding graduated from MSU just across the river in Moorhead, MN. Go get 8.1, its yummy :)

I hate to sound like a sour grape here

[hrieke]

But what are the odds that the bank, credit card company, and everyone else that you have a business relationship with will simply change the contract (or whatever it is that you sign) that adds the following line: You agree to allow us to resell your information.