The Secure Times

An online forum of the ABA Section of Antitrust Law's Privacy and Information Security Committee

Bank privacy policy constitutes part of bargained-for exchange where loan guarantor relied on policy in providing financial data

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A bank’s privacy policy constituted part of a loan guarantor’s bargained-for exchange with the bank, where the guarantor alleges that he relied upon the policy in providing confidential financial information to the bank in connection with the guarantee. Meyer v. Christie, No. 07-2230, 2007 U.S. Dist. LEXIS 79285 (D. Kan. Oct. 24, 2007). The court declined to dismiss the guarantor’s breach of contract claim arising out of a bank officer’s alleged disclosure and mischaracterization of the guarantor’s financial information, rejecting the bank’s argument that its privacy policy was "nothing more than a mere unilateral statement of company policy." The court also rejected the bank’s argument that the contract claim based on its privacy policy failed for lack of consideration because the bank was required by the Gramm-Leach-Bliley Act to provide notice of the privacy policy to customers. The court noted that the provision of the Act relied upon by the bank only required it to disclose its privacy policies, but did not dictate the terms of those policies.

 

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Author: ABA Antitrust

Learn more about the ABA Section of Antitrust Law: http://ambar.org/antitrust

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