Consumer Awareness
Benefits of Sharing Consumer Information

With the option to opt-out and the force of government regulation, one might get the impression that the business of data exchange was detrimental to the consumer. However, there are a number of benefits to the degree of freedom that businesses enjoy.

Credit, Loans and the Consumer

With the GLB Act, FCRA, FACT and the PFPA protecting one's privacy and the quality of shared information, official documentation provides a clear representation of one's financial history and practices. While many do fear the "Big Brother" nature of what is referred to as a "dossier society," the fluidity with which this information can legally be transferred has opened up previously daunting markets to consumers.

Why the Consumer Wins

The ease with which consumer information is shared leads to several important benefits, including lower costs and instant credit, for the consumer.

Loans and Credit: One no longer needs to rely on developing a personal relationship with a loan officer to establish a positive social identity with your financial history. While current law prevents discrimination based on personal information, the reality of the impact of gossip and scandal cannot be ignored. The nature of consumer information exchange allows for personally anonymous evaluation of an individual's financial standing. Further, this evaluation often results in virtually instant credit; no longer does one have to wait months for approval.

Instant Credit: The rapid data flow of the Internet has transformed business, allowing more and more businesses to provide instant credit to consumers, including mortgage companies, loan offices, stores and utility companies. Consumers are now given the freedom to buy at the time of need or interest. And, lower interest rates from fewer "at risk" individuals being offered credit decreases the number of people defaulting on loans.

Lower Costs: The consumer of today also enjoys lower prices because the costs of a third party who could provide credit have been eliminated from the equation. Additionally, the increased sales volume allows for better deals. It is alleged that US citizens save nearly $80 billion per year in comparison to citizens whose nations have stricter policies of financial consumer information flow.

Discount and Membership Cards

Very few supermarkets don't offer club cards to customers with the incentive of saving them money. Many activists, including Consumers Against Supermarket Privacy Invasion and Numbering (CASPIAN), criticize these cards as opportunities for markets to "spy" on shopping habits and coerce customers into purchasing certain products through the promise of saving money.
 
However, what CASPIAN and other groups fail to take in to account are the opportunities to analyze purchasing trends in real time, adjusting their own purchasing power to provide high demand goods in larger quantities and at a lower price to the consumer. Further, one is not forced to join a supermarket's club and under the GLB Act no information may be collected or shared with the business's affiliates.