{"id":352531,"date":"2019-05-31T10:37:17","date_gmt":"2019-05-31T15:37:17","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/credit-banking-finance\/bank-records-and-financial-privacy-laws.html"},"modified":"2024-02-09T15:23:33","modified_gmt":"2024-02-09T20:23:33","slug":"bank-records-and-financial-privacy-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/credit-banking-finance\/bank-records-and-financial-privacy-laws.html","title":{"rendered":"Bank Records and Financial Privacy Laws"},"content":{"rendered":"\n
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Bank Records and Financial Privacy Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last updated\n

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Your bank records say more about you than your account balance. For instance, certain transactions may indicate fraud or hidden assets. Bank records can be a valuable tool for criminal prosecutors conducting official investigations. But everyone has the right to a certain level of privacy from the government’s prying eyes.<\/p>\r\n

Before 1978, bank customers had no legal right to privacy with regard to personal financial information. But the Right to Financial Privacy Act of 1978<\/a> (RFPA) added some protections at the federal level. Some states also have financial privacy laws. These laws regulate how and when the government may access bank records without customer consent.<\/p>\r\n

Below, we’ll discuss the RFPA and how it works to protect some level of confidentiality<\/a> when it comes to your bank records.<\/p>\r\n

Financial Privacy Laws: Background<\/h2>\r\n

In 1976, the U.S. Supreme Court held that there was no reasonable expectation of privacy in bank records. <\/a>The Court ruled that such records are the property of the financial institution, not the customer. This also meant that banks were not required to disclose when they provided a consumer’s records to the government or law enforcement. In other words, the government could access your bank records without your knowledge or consent.<\/p>\r\n

This ruling prompted Congress to pass the RFPA<\/a> two years later. This federal law requires government officials to follow specific procedures when requesting bank records. It also imposes limits on banks and lenders before they can release such information. Lastly, it requires written notice to be given to bank customers about the government’s request.<\/p>\r\n

The Right to Financial Privacy Act<\/h2>\r\n

Under the RFPA, the federal government agency must first send the customer written notice of its intent to obtain the customer’s records. The federal agency must also provide an explanation of why it’s seeking the customer’s information.<\/p>\r\n

The RFPA applies to the following customers of financial institutions:<\/p>\r\n