Final answer:
The Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act, requires creditors to allow consumers to opt out of the sale of their Non-public Information (NPI).
Step-by-step explanation:
The federal act that requires creditors to allow consumers to opt out of the sale of their Non-public Information (NPI) is the Financial Services Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act (GLBA). The GLBA mandates financial institutions to provide their customers with a privacy policy that explains their information-sharing practices and to shield sensitive data. More importantly, it affords consumers the right to opt out, meaning they can choose not to have their personal information shared with certain third parties.
It is important for consumers to only provide the minimum information required, inquire about the reasons for data collection, how it will be used, and who will have access to it. Regularly monitoring credit history is also advised to detect potential identity theft.