GLBA Facts for Legal Professionals
It’s a well-established fact that attorneys who deal with their clients’ financial activities fall under the mandated provisions of the Financial Modernization Act of 1999, otherwise known as the Gramm-Leach Bliley Act, or GLBA. If your practice includes real estate closings, financial planning, or estate planning – or if you represent a client in any other financial area – you fall under GLBA guidelines
In 2002, the American Bar Association filed an action in Federal District Court to exempt Attorneys from Title V of the GLB Act. The action is pending and there have been no indications as to when the matter will be settled. Currently, all attorneys are still bound by GLBA strictures.
Right now, compliance with the safeguarding provisions of GLBA is simple, as is the disposal by shredding of files and financial records that contain your clients’ Non-Public Information (NPI).
Attorneys who hold financial information are bound by two issues of GLBA compliance. First, they must perform due diligence in choosing a reliable vendor to shred NPI-containing documents. Second, they are required to give written permission to the vendor to remove NPI for the sole purpose of disposal by shredding.
Attorneys practicing in the fields of personal injury, workers’ compensation, social security disability and/or medical malpractice are also bound by the enactment of the Health Insurance Portability and Accountability Act, commonly known as HIPAA.
HIPPAA protects the privacy of protected health information (PHI). If your files and records contain any of your client’s’ medical records you must comply with the HIPAA provisions for safeguarding and disposal by shredding of these records.
GLBA Quick Facts
The Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999 is commonly pronounced ″glibba.”
GLBA compliance is mandatory; whether a financial institution discloses nonpublic information or not, there must be a policy in place to protect the information from foreseeable threats in security and data integrity.
GLBA defines financial institutions as: “companies that offer financial products or services to individuals, like loans, financial or investment advice, or insurance”.
Under GLBA, financial institutions must provide their clients a privacy notice that explains what information the company gathers about the client, where this information is shared, and how the company safeguards that information.
The privacy notice must also give the customers the ability to ‘opt-out’. Opting out means that the client can say “no” to allowing their information to be shared with affiliated parties. This particular rule doesn’t just fall under GLBA; the Fair Credit Reporting Act is responsible for the ‘opt-out’ opportunity. The privacy notice must inform the customer of this right under the GLBA.
Legal Shred is knowledgeable in all document destruction laws and can help your law practice maintain compliance. We offer same-day and next-day service, as well as routine service without hidden fees or surcharges.
Contact a representative today to obtain a quote for fast, secure, and efficient document destruction.