Be sure to check your mail carefully over the next month. In 2001 a new law went into effect that would require credit card companies to send annual privacy policies to cardholders. As it went into effect during the summer, the summer months happen to be the busiest for credit card privacy policies mailed to consumers.
Your privacy policy dictates how a credit card company can use your information. By law, credit card companies have to give you the right to opt out of some personal information sharing. For example, you can opt out of having personal information like your name, address, credit rating, and income shared with third-party firms like retailers or other financial companies.
Why Opt Out?
Privacy. Allowing companies to share intimate details about your financial life means more companies have your most valuable information. Any time your records are available in more places, no matter how secure the database, there is greater risk of identity theft. Also, opting out can significantly reduce the number of pre-selected credit card offers and mortgage pre-approval solicitations that you find in your mailbox each month.
Opting out of data-sharing is as easy as making a phone call or sending a letter by mail. The terms for each card vary, however most will allow you to opt-out indefinitely with a simple phone call. Always follow directions from top to bottom, however, as a credit card company may not approve opt-out requests from individuals who do not complete the directions as required.
Some companies offer different privacy policies from product to product. Credit cards often have different policies than bank accounts, even if the accounts are opened at the same institution. Keep in mind that unless you opt out of information sharing for every account, your information will still flow from one source to the next. You must follow the rules to opt-out of information sharing on all your accounts to have the most effect.
Should you opt-out? That's up to you. However, if you're tired of overstuffed mailboxes, opting out of information sharing is a great way to keep your personal information private and your mailbox clean as it can be.