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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!"
Not in my backyard.
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!
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All 600,000 residents are now protected! Actually, having lived in ND for a year and half, it's surprising that this actually happened. They ran ads trying to scare people saying it would keep business out of the state, and I've noticed that people there tend to believe everything they see on TV, and are very concerned about bringing more business to the state.
Of course, it's not privacy laws that are going to keep business out, it's the flatness, the lack of activities, and the high cost of getting a fat pipe that's keeping business away. Not to mention that if a business needs some piece of equipment in a hurry, it will take a couple days to ship it there since it's doubtful that it's available locally. I don't miss living there one bit, but it's good that they actually repealed this evil law.
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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 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.
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.
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 --- literal because it's state owned.
Apparently that ol' NPL spirit hasn't died.
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
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The original law, which now goes back into effect since the 2001 law was defeated in this election, does not prevent banks and credit unions from collecting credit information to determine whether or not to loan money. It only prohibits them from selling that information to third parties without getting the express written permission of the person who provided the information to them.
As far as banks and credit unions in North Dakota refusing to loan money to those who won't opt in:
1. If it was a credit union, I would be sure to bring that up at the next members meeting. With 70% of NoDaks voting against this law, I would say that this would produce changes quick.
2. If it was a bank, I would report it to the North Dakota Banking and Finance Department.
3. With either banks or credit unions, think about this: If 70% of NoDaks voted against allowing them to sell collected information, I would say that at least 50% of NoDaks will not choose to opt in. Banks and credit unions make money by loaning money out. I do not know of any business that can afford to write off half of its market.
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.
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.
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 :)
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.
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