What does the Privacy Rule of the Gramm-Leach-Bliley Act require financial institutions to provide to borrowers?

The Privacy Rule of the Gramm-Leach-Bliley Act mandates that financial institutions provide a consumer privacy policy to borrowers. This requirement is essential as it ensures that consumers are informed about how their personal information is collected, shared, and used by financial institutions. The policy must outline the types of information collected, whether it is shared with third parties, and the measures taken to protect customers' personal information.

Providing this policy helps enhance consumer awareness and fosters trust between financial institutions and their clients by promoting transparency regarding data privacy practices. It is a critical aspect of consumer rights in managing their personal information in the financial sector. Other options like annual financial statements, tax documents, and account statements do not relate specifically to the privacy rights addressed by this rule, making the consumer privacy policy the correct choice.