No to Privacy Profiteers

California banks and insurance companies should not be allowed to sell supposedly confidential financial information to other companies for marketing purposes. That this is legal is outrageous. No one wants his bank broadcasting the size of his account, the balance on his mortgage or his telephone number.

The Legislature can stop that practice by passing SB 773, by Sen. Jackie Speier (D-Hillsborough). It’s shameful that this measure has been stuck in the Assembly since Sept. 13. The bill got only 32 votes there--all from Democrats--nine short of the majority needed.

Even more infuriating is that 18 Democrats didn’t vote at all on the most important piece of consumer protection legislation to come before the Legislature this year. (Ten of those represent parts of Los Angeles County or Orange County.) The reason is simple and deplorable. The legislators didn’t want to vote against the bill and be targeted by their supporters as anti-consumer. But they didn’t want to vote for the bill and possibly alienate the giant financial institutions that make generous campaign contributions. This may be a new high, or low, in lack of legislative courage. All Assembly Republicans voted no.

In the absence of adequate federal law, the Speier bill generally would require financial institutions to get the customer’s permission before they could sell personal information to another company.

Firms still could pass on the information to other units under the same corporate ownership, but customers would have the opportunity each year to declare whether they wanted that practice to stop.

Many, but not all, of the biggest banks and insurance companies are vigorously opposed to the bill. Speier does has the backing of American Express, Pacific Life Insurance and the California State Automobile Assn., a major insurance carrier, among others.

Speier soon will bring back the legislation to the Assembly floor for another try. This time, the Assembly should give her the needed votes. Any members who claim to be on the side of consumer rights but don’t vote for this bill had better be prepared to explain why they did not support it.