Federal Agencies' Initial Problems With the Right to Financial Privacy Act of 1978

The Right to Privacy Act of 1978 established procedures to safeguard the privacy of personal financial records maintained by financial institutions. Every Federal agency which utilizes records obtained from financial institutions, especially the law enforcement agencies such as the Departments of Justice and Treasury, is affected by the Act and must follow certain procedures before obtaining access to these records. Approximately 15,000 banks, 4,600 savings and loan associations, and numerous credit unions, credit card issuers, and other financial institutions are also affected since they are responsible for releasing customer financial records to Federal agencies only after the proper procedures have been followed. In addition, the Act gives customers the right to challenge in court any access to their records by Federal agencies. A review was made to determine the progress Federal agencies had made in implementing the Act and the problems they encountered.