The CFPB finalized a rule Monday that allows financial institutions that meet requirements to post their annual privacy notices online instead of through the mail.

Under the Gramm-Leach-Bliley Act, financial institutions are required to send annual privacy notices to customers, which describe how the institution shares consumers' nonpublic personal information.

“If the institution does share this information with an unaffiliated third party, it typically must notify consumers of their right to opt out of the sharing and inform them of how to do so,” the CFPB said in a press release.

Privacy disclosures have been sent to consumers separately from normal communication. The new rule allows institutions to include a privacy notice along with a credit card billing statement, for example, which alerts consumers about the availability of the privacy disclosure online.

“Consumers need clear and accessible information about how their personal information is being used in the marketplace, but some of these requirements were redundant,” CFPB Director Richard Cordray said. “Posting privacy notices online will make it easier for consumers to access these important policies, while also making it cheaper for financial institutions to provide disclosures.”

The CFPB cited continuous access to the company's privacy policies online and cost savings for companies as benefits of their new rule.

The final rule contained minor technical revisions compared to the original proposal in May. The rule will take effect after it is published in the Federal Register.

“We do support the CFPB's action as a good first step in addressing this issue, but we would ultimately like to see final legislative action to address the problem,” Brad Thaler, NAFCU vice president of legislative affairs, said.

A bill that passed the House but stalled in the Senate would eliminate the annual privacy notice requirement if financial institutions meet certain requirements.