Is your personal info safe with your bank?

by Kristina on July 3, 2013 · 3 comments

Good morning Dinks. Yesterday I received a letter from TD Bank advising me that the fees for my checking and savings accounts are being increased. There were two inserts in the envelope that talked about how TD Bank is using my personal information. I never really thought about how or why my bank is using my information, but now it’s got me thinking.

I have a checking and savings account with TD Bank but I don’t have any credit products. That will probably change when I relocate to the United States, but for now I don’t see the point. Actually it is probably a really good idea to apply for a U.S. credit card now so that I already have an established credit history by the time I arrive in New York City, which will hopefully be later this year.

How much information do you give to your bank?

TD Bank only has my name, address, phone number in the U.S. and two pieces of identification on file – one of which is my Canadian passport. I personally don’t mind that my U.S. bank has my personal information on file, but I am a minority.

One of the main questions that we are asked by clients in Canadian banking is if our client information and servers are stored in Canada. Many Canadians do not want their information held or stored in the U.S. because of the Patriot Act and other American banking laws.

In my opinion it’s not really a big deal if my bank has my personal information on file because as a bank employee I understand why banks ask for complete personal and contact information as well as two pieces of identification – especially if clients are applying for credit. Being that clients are giving their information to a bank I would like to assume that the bank is keeping client information safe and sound. There are not many services in the world that consumers can have without giving the company some personal information.

Do you want to know what your bank is doing with your info?

The personal information insert from TD Bank advises clients that they can limit how their bank shares their personal information in some ways, but not all.  Banks need to share a client’s personal information especially within different organizations in the bank – if your branch has your personal information for your checking and savings accounts they will have to share it with their credit adjudication department if you apply for a credit card, loan or mortgage.

Banks are legally required to tell clients how and why their collect, share and keep client information safe. At any time clients can inquire how their personal information is being used.

One interesting statement in the information insert that I received from TD Bank is that it states TD Bank will continue to share a client’s personal information as describe in their information policy even after the person is no longer a client at the bank. I thought that the information would be stored and idle if a client no longer has an account, but the bank can apparently still use it.

Do you trust your bank with your personal information?

Photo by Anonymous9000

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{ 3 comments… read them below or add one }

1 John S @ Frugal Rules July 3, 2013 at 11:27 am

I really do not trust our bank with personal information. I don’t think many do and that’s why I try and limit what they do have. It just makes it even more important to watch your accounts and the info you’re providing.

2 Grayson @ Debt Roundup July 3, 2013 at 3:41 pm

While I don’t trust banks with my information, I understand how much information they actually have. When I worked in mortgage collections, we had a treasure-trove of information on all of the borrowers. The best thing that I can do is try to monitor my accounts on a regular basis.

3 Canadian Budget Binder July 4, 2013 at 6:07 am

Interesting that TD does that and even more interesting what you read when you read the fine print on those increase letters. We bank with PC and now you have me curious and I’m going to check to see what they do with personal info.

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