Emma, a dedicated reader of this blog, emailed us this morning with some concerns about a recent USA Today article called "Schools give student data to banks." In this report, USA Today uncovered the fact that colleges and universities routinely sell student data to banks and creditors:
As I was reading it, I couldn’t believe that colleges and universities were selling student information for profit. Isn’t the purpose of these institutions to meet student needs, not banks? I would love to see what you have to say about the issue.
Frankly, I’m not at all surprised by this report. Data collection and sales has become a huge secondary industry in our current economy. Basically, any company or organization that has your information is probably trying to sell it to someone else. Here are some of the big data players:
- Schools and universities
- Casinos
- Charities
- Political groups
- Professional organizations
- DMV’s
- Banks
- Grocery stores
- Health care providers (even post HIPAA)
- Credit card issuers
- Credit bureaus
Have you noticed that when you make a donation to a charity, you suddenly start receiving all sorts of letters from other organizations in the mail? Or that when you open a new bank account, you are given an opportunity to "opt-out" of their data marketing program? Or that those "membership rewards" cards at casinos and grocery stores know an awful lot about you, more than you probably know about yourself?
Companies that collect consumer information are making big bucks farming their data out to mailing list agencies and other businesses. Data farming is truly a cash crop for many businesses and organizations. Do companies consider the privacy implications? Probably not. Unless specifically regulated under laws like the FCRA and HIPAA, it’s all legal and legit.
So, what can you do to stop your personal data from having a life of it’s own? You can start by opting-out whenever you have a chance. The two biggies are with the credit bureaus and the Direct Marketing Association. You can also call banks, charities and other groups to request that you are removed from their marketing lists and can turn down offers for membership rewards programs.
Want to learn more about data privacy issues? Visit Privacy.org, the Federal Trade Commission and the Electronic Privacy Information Center. In the meantime, share your feedback about data privacy in the comments section below.