But more than half of consumers also said they believe companies handle information responsibly. Although the new rules technically go into effect next week, federal regulatory agencies agreed earlier this year to delay enforcement until summer to give companies more time to prepare. But the law also applies to businesses such as department stores and other retailers that maintain their own credit operations, as well as to some debt collectors that purchase delinquent accounts. Tightening controls on information While it sounds simple, Whitener said many companies will have to closely examine their processes to make sure there are no holes that might allow customer information into the hands of third parties. Besides requiring companies to adopt or possibly revise privacy policies, the law also requires that customers be notified of the policies.
Many banks already post policies on their Websites and are beginning to mail notices to customers.
Under the law, notifications must be repeated at least annually. The rules affect large and small institutions. Spokesman Scott Scredon said the bank's information security policies already comply with the new rules. At the time, he said, Bank of America was the first bank to adopt such a policy. Riggs bank officials said they don't think the new rules will require any big changes.