What is the purpose of the Gramm-Leach-Bliley Act (GLBA)?

• A. Protect consumer nonpublic personal information
• B. Promote generic disclosure
• C. Regulate appraisal practices
• D. Set interest rate caps

Answer: (A)

The Gramm-Leach-Bliley Act is about safeguarding consumers’ sensitive financial information. It aims to protect consumer nonpublic personal information held by financial institutions by requiring clear privacy notices, limiting sharing of that data with nonaffiliated parties, and mandating a formal safeguards program to protect data from theft or misuse. This emphasis on privacy and security helps prevent misuse of things like account numbers, Social Security numbers, and transaction histories.

The other options don’t fit because the act isn’t about promoting disclosure, regulating appraisal practices, or setting interest rate caps.