Title 12--Banks and Banking CHAPTER II--FEDERAL RESERVE SYSTEM PART 216--PRIVACY OF CONSUMER FINANCIAL INFORMATION (REGULATION P) |
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(a) Purpose. This part governs the treatment of nonpublic personal
information about consumers by the financial institutions listed in
paragraph (b) of this section. This part:
(1) Requires a financial institution to provide notice to customers
about its privacy policies and practices;
(2) Describes the conditions under which a financial institution may
disclose nonpublic personal information about consumers to nonaffiliated
third parties; and
(3) Provides a method for consumers to prevent a financial
institution from disclosing that information to most nonaffiliated third
parties by ``opting out'' of that disclosure, subject to the exceptions
in Secs. 216.13, 216.14, and 216.15.
(b) Scope. (1) This part applies only to nonpublic personal
information about individuals who obtain financial products or services
primarily for personal, family, or household purposes from the
institutions listed below. This part does not apply to information about
companies or about individuals who obtain financial products or services
for business, commercial, or agricultural purposes. This part applies to
the U. S. offices of entities for which the Board has primary
supervisory authority. They are referred to in this part as ``you.''
These are: State member banks, bank holding companies and certain of
their nonbank subsidiaries or affiliates, State uninsured branches and
agencies of foreign banks, commercial lending companies owned or
controlled by foreign banks, and Edge and Agreement corporations.
(2) Nothing in this part modifies, limits, or supersedes the
standards governing individually identifiable health information
promulgated by the Secretary of Health and Human Services under the
authority of sections 262 and 264 of the Health Insurance Portability
and Accountability Act of 1996 (42 U.S.C. 1320d-1320d-8).
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The examples in this part and the sample clauses in appendix A of this part are not exclusive. Compliance with an example or use of a sample clause, to the extent applicable, constitutes compliance with this part. |
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As used in this part, unless the context requires otherwise:
(a) Affiliate means any company that controls, is controlled by, or
is under common control with another company.
(b) (1) Clear and conspicuous means that a notice is reasonably
understandable and designed to call attention to the nature and
significance of the information in the notice.
(2) Examples--(i) Reasonably understandable. You make your notice
reasonably understandable if you:
(A) Present the information in the notice in clear, concise
sentences, paragraphs, and sections;
(B) Use short explanatory sentences or bullet lists whenever
possible;
(C) Use definite, concrete, everyday words and active voice whenever
possible;
(D) Avoid multiple negatives;
(E) Avoid legal and highly technical business terminology whenever
possible; and
(F) Avoid explanations that are imprecise and readily subject to
different interpretations.
(ii) Designed to call attention. You design your notice to call
attention to the nature and significance of the information in it if
you:
(A) Use a plain-language heading to call attention to the notice;
(B) Use a typeface and type size that are easy to read;
(C) Provide wide margins and ample line spacing;
(D) Use boldface or italics for key words; and
(E) In a form that combines your notice with other information, use
distinctive type size, style, and graphic devices, such as shading or
sidebars,
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when you combine your notice with other information.
(iii) Notices on web sites. If you provide a notice on a web page,
you design your notice to call attention to the nature and significance
of the information in it if you use text or visual cues to encourage
scrolling down the page if necessary to view the entire notice and
ensure that other elements on the web site (such as text, graphics,
hyperlinks, or sound) do not distract attention from the notice, and you
either:
(A) Place the notice on a screen that consumers frequently access,
such as a page on which transactions are conducted; or
(B) Place a link on a screen that consumers frequently access, such
as a page on which transactions are conducted, that connects directly to
the notice and is labeled appropriately to convey the importance,
nature, and relevance of the notice.
(c) Collect means to obtain information that you organize or can
retrieve by the name of an individual or by identifying number, symbol,
or other identifying particular assigned to the individual, irrespective
of the source of the underlying information.
(d) Company means any corporation, limited liability company,
business trust, general or limited partnership, association, or similar
organization.
(e)(1) Consumer means an individual who obtains or has obtained a
financial product or service from you that is to be used primarily for
personal, family, or household purposes, or that individual's legal
representative.
(2) Examples--(i) An individual who applies to you for credit for
personal, family, or household purposes is a consumer of a financial
service, regardless of whether the credit is extended.
(ii) An individual who provides nonpublic personal information to
you in order to obtain a determination about whether he or she may
qualify for a loan to be used primarily for personal, family, or
household purposes is a consumer of a financial service, regardless of
whether the loan is extended.
(iii) An individual who provides nonpublic personal information to
you in connection with obtaining or seeking to obtain financial,
investment, or economic advisory services is a consumer regardless of
whether you establish a continuing advisory relationship.
(iv) If you hold ownership or servicing rights to an individual's
loan that is used primarily for personal, family, or household purposes,
the individual is your consumer, even if you hold those rights in
conjunction with one or more other institutions. (The individual is also
a consumer with respect to the other financial institutions involved.)
An individual who has a loan in which you have ownership or servicing
rights is your consumer, even if you, or another institution with those
rights, hire an agent to collect on the loan.
(v) An individual who is a consumer of another financial institution
is not your consumer solely because you act as agent for, or provide
processing or other services to, that financial institution.
(vi) An individual is not your consumer solely because he or she has
designated you as trustee for a trust.
(vii) An individual is not your consumer solely because he or she is
a beneficiary of a trust for which you are a trustee.
(viii) An individual is not your consumer solely because he or she
is a participant or a beneficiary of an employee benefit plan that you
sponsor or for which you act as a trustee or fiduciary.
(f) Consumer reporting agency has the same meaning as in section
603(f) of the Fair Credit Reporting Act (15 U.S.C. 1681a(f)).
(g) Control of a company means:
(1) Ownership, control, or power to vote 25 percent or more of the
outstanding shares of any class of voting security of the company,
directly or indirectly, or acting through one or more other persons;
(2) Control in any manner over the election of a majority of the
directors, trustees, or general partners (or individuals exercising
similar functions) of the company; or
(3) The power to exercise, directly or indirectly, a controlling
influence over the management or policies of the company, as the Board
determines.
(h) Customer means a consumer who has a customer relationship with
you.
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(i)(1) Customer relationship means a continuing relationship between
a consumer and you under which you provide one or more financial
products or services to the consumer that are to be used primarily for
personal, family, or household purposes.
(2) Examples--(i) Continuing relationship. A consumer has a
continuing relationship with you if the consumer:
(A) Has a deposit or investment account with you;
(B) Obtains a loan from you;
(C) Has a loan for which you own the servicing rights;
(D) Purchases an insurance product from you;
(E) Holds an investment product through you, such as when you act as
a custodian for securities or for assets in an Individual Retirement
Arrangement;
(F) Enters into an agreement or understanding with you whereby you
undertake to arrange or broker a home mortgage loan for the consumer;
(G) Enters into a lease of personal property with you; or
(H) Obtains financial, investment, or economic advisory services
from you for a fee.
(ii) No continuing relationship. A consumer does not, however, have
a continuing relationship with you if:
(A) The consumer obtains a financial product or service only in
isolated transactions, such as using your ATM to withdraw cash from an
account at another financial institution or purchasing a cashier's check
or money order;
(B) You sell the consumer's loan and do not retain the rights to
service that loan; or
(C) You sell the consumer airline tickets, travel insurance, or
traveler's checks in isolated transactions.
(j) Federal functional regulator means:
(1) The Board of Governors of the Federal Reserve System;
(2) The Office of the Comptroller of the Currency;
(3) The Board of Directors of the Federal Deposit Insurance
Corporation;
(4) The Director of the Office of Thrift Supervision;
(5) The National Credit Union Administration Board; and
(6) The Securities and Exchange Commission.
(k)(1) Financial institution means any institution the business of
which is engaging in activities that are financial in nature or
incidental to such financial activities as described in section 4(k) of
the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)).
(2) Financial institution does not include:
(i) Any person or entity with respect to any financial activity that
is subject to the jurisdiction of the Commodity Futures Trading
Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq.);
(ii) The Federal Agricultural Mortgage Corporation or any entity
chartered and operating under the Farm Credit Act of 1971 (12 U.S.C.
2001 et seq.); or
(iii) Institutions chartered by Congress specifically to engage in
securitizations, secondary market sales (including sales of servicing
rights), or similar transactions related to a transaction of a consumer,
as long as such institutions do not sell or transfer nonpublic personal
information to a nonaffiliated third party.
(l)(1) Financial product or service means any product or service
that a financial holding company could offer by engaging in an activity
that is financial in nature or incidental to such a financial activity
under section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C.
1843(k)).
(2) Financial service includes your evaluation or brokerage of
information that you collect in connection with a request or an
application from a consumer for a financial product or service.
(m)(1) Nonaffiliated third party means any person except:
(i) Your affiliate; or
(ii) A person employed jointly by you and any company that is not
your affiliate (but nonaffiliated third party includes the other company
that jointly employs the person).
(2) Nonaffiliated third party includes any company that is an
affiliate solely by virtue of your or your affiliate's direct or
indirect ownership or control of the company in conducting merchant
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banking or investment banking activities of the type described in
section 4(k)(4)(H) or insurance company investment activities of the
type described in section 4(k)(4)(I) of the Bank Holding Company Act of
1956 (12 U.S.C. 1843(k)(4)(H) and (I)).
(n)(1) Nonpublic personal information means:
(i) Personally identifiable financial information; and
(ii) Any list, description, or other grouping of consumers (and
publicly available information pertaining to them) that is derived using
any personally identifiable financial information that is not publicly
available.
(2) Nonpublic personal information does not include:
(i) Publicly available information, except as included on a list
described in paragraph (n)(1)(ii) of this section; or
(ii) Any list, description, or other grouping of consumers (and
publicly available information pertaining to them) that is derived
without using any personally identifiable financial information that is
not publicly available.
(3) Examples of lists--(i) Nonpublic personal information includes
any list of individuals' names and street addresses that is derived in
whole or in part using personally identifiable financial information
that is not publicly available, such as account numbers.
(ii) Nonpublic personal information does not include any list of
individuals' names and addresses that contains only publicly available
information, is not derived in whole or in part using personally
identifiable financial information that is not publicly available, and
is not disclosed in a manner that indicates that any of the individuals
on the list is a consumer of a financial institution.
(o)(1) Personally identifiable financial information means any
information:
(i) A consumer provides to you to obtain a financial product or
service from you;
(ii) About a consumer resulting from any transaction involving a
financial product or service between you and a consumer; or
(iii) You otherwise obtain about a consumer in connection with
providing a financial product or service to that consumer.
(2) Examples--(i) Information included. Personally identifiable
financial information includes:
(A) Information a consumer provides to you on an application to
obtain a loan, credit card, or other financial product or service;
(B) Account balance information, payment history, overdraft history,
and credit or debit card purchase information;
(C) The fact that an individual is or has been one of your customers
or has obtained a financial product or service from you;
(D) Any information about your consumer if it is disclosed in a
manner that indicates that the individual is or has been your consumer;
(E) Any information that a consumer provides to you or that you or
your agent otherwise obtain in connection with collecting on a loan or
servicing a loan;
(F) Any information you collect through an Internet ``cookie'' (an
information collecting device from a web server); and
(G) Information from a consumer report.
(ii) Information not included. Personally identifiable financial
information does not include:
(A) A list of names and addresses of customers of an entity that is
not a financial institution; and
(B) Information that does not identify a consumer, such as aggregate
information or blind data that does not contain personal identifiers
such as account numbers, names, or addresses.
(p)(1) Publicly available information means any information that you
have a reasonable basis to believe is lawfully made available to the
general public from:
(i) Federal, State, or local government records;
(ii) Widely distributed media; or
(iii) Disclosures to the general public that are required to be made
by Federal, State, or local law.
(2) Reasonable basis. You have a reasonable basis to believe that
information is lawfully made available to the general public if you have
taken steps to determine:
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(i) That the information is of the type that is available to the
general public; and
(ii) Whether an individual can direct that the information not be
made available to the general public and, if so, that your consumer has
not done so.
(3) Examples--(i) Government records. Publicly available information
in government records includes information in government real estate
records and security interest filings.
(ii) Widely distributed media. Publicly available information from
widely distributed media includes information from a telephone book, a
television or radio program, a newspaper, or a web site that is
available to the general public on an unrestricted basis. A web site is
not restricted merely because an Internet service provider or a site
operator requires a fee or a password, so long as access is available to
the general public.
(iii) Reasonable basis--(A) You have a reasonable basis to believe
that mortgage information is lawfully made available to the general
public if you have determined that the information is of the type
included on the public record in the jurisdiction where the mortgage
would be recorded.
(B) You have a reasonable basis to believe that an individual's
telephone number is lawfully made available to the general public if you
have located the telephone number in the telephone book or the consumer
has informed you that the telephone number is not unlisted.
(q) You means:
(1) A State member bank, as defined in 12 CFR 208.3(g);
(2) A bank holding company, as defined in 12 CFR 225.2(c);
(3) A subsidiary (as defined in 12 CFR 225.2(o)) or affiliate of a
bank holding company and a subsidiary of a State member bank, except
for:
(i) A national bank or a State bank that is not a member of the
Federal Reserve System;
(ii) A broker or dealer that is registered under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.);
(iii) A registered investment adviser, properly registered by or on
behalf of either the Securities Exchange Commission or any State, with
respect to its investment advisory activities and its activities
incidental to those investment advisory activities;
(iv) An investment company that is registered under the Investment
Company Act of 1940 (15 U.S.C. 80a-1 et seq.); or
(v) An insurance company, with respect to its insurance activities
and its activities incidental to those insurance activities, that is
subject to supervision by a State insurance regulator;
(4) A State agency or State branch of a foreign bank, as those terms
are defined in 12 U.S.C. 3101(b) (11) and (12), the deposits of which
agency or branch are not insured by the Federal Deposit Insurance
Corporation;
(5) A commercial lending company, as defined in 12 CFR 211.21(f),
that is owned or controlled by a foreign bank, as defined in 12 CFR
211.21(m); or
(6) A corporation organized under section 25A of the Federal Reserve
Act (12 U.S.C. 611-631) or a corporation having an agreement or
undertaking with the Board under section 25 of the Federal Reserve Act
(12 U.S.C. 601-604a). |
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Sec. 216.4 Initial privacy notice to
consumers required. |
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(a) Initial notice requirement. You must provide a clear and
conspicuous notice that accurately reflects your privacy policies and
practices to:
(1) Customer. An individual who becomes your customer, not later
than when you establish a customer relationship, except as provided in
paragraph (e) of this section; and
(2) Consumer. A consumer, before you disclose any nonpublic personal
information about the consumer to any nonaffiliated third party, if you
make such a disclosure other than as authorized by Secs. 216.14 and
216.15.
(b) When initial notice to a consumer is not required. You are not
required to provide an initial notice to a consumer under paragraph (a)
of this section if:
(1) You do not disclose any nonpublic personal information about the
consumer to any nonaffiliated third party, other than as authorized by
Secs. 216.14 and 216.15; and
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(2) You do not have a customer relationship with the consumer.
(c) When you establish a customer relationship--(1) General rule.
You establish a customer relationship when you and the consumer enter
into a continuing relationship.
(2) Special rule for loans--You establish a customer relationship
with a consumer when you originate a loan to the consumer for personal,
family, or household purposes. If you subsequently transfer the
servicing rights to that loan to another financial institution, the
customer relationship transfers with the servicing rights.
(3)(i) Examples of establishing customer relationship. You establish
a customer relationship when the consumer:
(A) Opens a credit card account with you;
(B) Executes the contract to open a deposit account with you,
obtains credit from you, or purchases insurance from you;
(C) Agrees to obtain financial, economic, or investment advisory
services from you for a fee; or
(D) Becomes your client for the purpose of your providing credit
counseling or tax preparation services.
(ii) Examples of loan rule. You establish a customer relationship
with a consumer who obtains a loan for personal, family, or household
purposes when you:
(A) Originate the loan to the consumer; or
(B) Purchase the servicing rights to the consumer's loan.
(d) Existing customers. When an existing customer obtains a new
financial product or service from you that is to be used primarily for
personal, family, or household purposes, you satisfy the initial notice
requirements of paragraph (a) of this section as follows:
(1) You may provide a revised privacy notice, under Sec. 216.8, that
covers the customer's new financial product or service; or
(2) If the initial, revised, or annual notice that you most recently
provided to that customer was accurate with respect to the new financial
product or service, you do not need to provide a new privacy notice
under paragraph (a) of this section.
(e) Exceptions to allow subsequent delivery of notice. (1) You may
provide the initial notice required by paragraph (a)(1) of this section
within a reasonable time after you establish a customer relationship if:
(i) Establishing the customer relationship is not at the customer's
election; or
(ii) Providing notice not later than when you establish a customer
relationship would substantially delay the customer's transaction and
the customer agrees to receive the notice at a later time.
(2) Examples of exceptions--(i) Not at customer's election.
Establishing a customer relationship is not at the customer's election
if you acquire a customer's deposit liability or the servicing rights to
a customer's loan from another financial institution and the customer
does not have a choice about your acquisition.
(ii) Substantial delay of customer's transaction. Providing notice
not later than when you establish a customer relationship would
substantially delay the customer's transaction when:
(A) You and the individual agree over the telephone to enter into a
customer relationship involving prompt delivery of the financial product
or service; or
(B) You establish a customer relationship with an individual under a
program authorized by Title IV of the Higher Education Act of 1965 (20
U.S.C. 1070 et seq.) or similar student loan programs where loan
proceeds are disbursed promptly without prior communication between you
and the customer.
(iii) No substantial delay of customer's transaction. Providing
notice not later than when you establish a customer relationship would
not substantially delay the customer's transaction when the relationship
is initiated in person at your office or through other means by which
the customer may view the notice, such as on a web site.
(f) Delivery. When you are required to deliver an initial privacy
notice by this section, you must deliver it according to Sec. 216.9. If
you use a short-form initial notice for non-customers according to
Sec. 216.6(d), you may deliver your privacy notice according to
Sec. 216.6(d)(3).
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Sec. 216.5 Annual privacy notice to
customers required. |
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(a)(1) General rule. You must provide a clear and conspicuous notice
to customers that accurately reflects your privacy policies and
practices not less than annually during the continuation of the customer
relationship. Annually means at least once in any period of 12
consecutive months during which that relationship exists. You may define
the 12-consecutive-month period, but you must apply it to the customer
on a consistent basis.
(2) Example. You provide a notice annually if you define the 12-
consecutive-month period as a calendar year and provide the annual
notice to the customer once in each calendar year following the calendar
year in which you provided the initial notice. For example, if a
customer opens an account on any day of year 1, you must provide an
annual notice to that customer by December 31 of year 2.
(b)(1) Termination of customer relationship. You are not required to
provide an annual notice to a former customer.
(2) Examples. Your customer becomes a former customer when:
(i) In the case of a deposit account, the account is inactive under
your policies;
(ii) In the case of a closed-end loan, the customer pays the loan in
full, you charge off the loan, or you sell the loan without retaining
servicing rights;
(iii) In the case of a credit card relationship or other open-end
credit relationship, you no longer provide any statements or notices to
the customer concerning that relationship or you sell the credit card
receivables without retaining servicing rights; or
(iv) You have not communicated with the customer about the
relationship for a period of 12 consecutive months, other than to
provide annual privacy notices or promotional material.
(c) Special rule for loans. If you do not have a customer
relationship with a consumer under the special rule for loans in
Sec. 216.4(c)(2), then you need not provide an annual notice to that
consumer under this section.
(d) Delivery. When you are required to deliver an annual privacy
notice by this section, you must deliver it according to Sec. 216.9.
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Sec. 216.6 Information to be included in
privacy notices. |
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(a) General rule. The initial, annual, and revised privacy notices
that you provide under Secs. 216.4, 216.5, and 216.8 must include each
of the following items of information, in addition to any other
information you wish to provide, that applies to you and to the
consumers to whom you send your privacy notice:
(1) The categories of nonpublic personal information that you
collect;
(2) The categories of nonpublic personal information that you
disclose;
(3) The categories of affiliates and nonaffiliated third parties to
whom you disclose nonpublic personal information, other than those
parties to whom you disclose information under Secs. 216.14 and 216.15;
(4) The categories of nonpublic personal information about your
former customers that you disclose and the categories of affiliates and
nonaffiliated third parties to whom you disclose nonpublic personal
information about your former customers, other than those parties to
whom you disclose information under Secs. 216.14 and 216.15;
(5) If you disclose nonpublic personal information to a
nonaffiliated third party under Sec. 216.13 (and no other exception in
Sec. 216.14 or 216.15 applies to that disclosure), a separate statement
of the categories of information you disclose and the categories of
third parties with whom you have contracted;
(6) An explanation of the consumer's right under Sec. 216.10(a) to
opt out of the disclosure of nonpublic personal information to
nonaffiliated third parties, including the method(s) by which the
consumer may exercise that right at that time;
(7) Any disclosures that you make under section 603(d)(2)(A)(iii) of
the Fair Credit Reporting Act (15 U.S.C. 1681a(d)(2)(A)(iii)) (that is,
notices regarding the ability to opt out of disclosures of information
among affiliates);
(8) Your policies and practices with respect to protecting the
confidentiality and security of nonpublic personal information; and
(9) Any disclosure that you make under paragraph (b) of this
section.
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(b) Description of nonaffiliated third parties subject to
exceptions. If you disclose nonpublic personal information to third
parties as authorized under Secs. 216.14 and 216.15, you are not
required to list those exceptions in the initial or annual privacy
notices required by Secs. 216.4 and 216.5. When describing the
categories with respect to those parties, you are required to state only
that you make disclosures to other nonaffiliated third parties as
permitted by law.
(c) Examples--(1) Categories of nonpublic personal information that
you collect. You satisfy the requirement to categorize the nonpublic
personal information that you collect if you list the following
categories, as applicable:
(i) Information from the consumer;
(ii) Information about the consumer's transactions with you or your
affiliates;
(iii) Information about the consumer's transactions with
nonaffiliated third parties; and
(iv) Information from a consumer reporting agency.
(2) Categories of nonpublic personal information you disclose--(i)
You satisfy the requirement to categorize the nonpublic personal
information that you disclose if you list the categories described in
paragraph (c)(1) of this section, as applicable, and a few examples to
illustrate the types of information in each category.
(ii) If you reserve the right to disclose all of the nonpublic
personal information about consumers that you collect, you may simply
state that fact without describing the categories or examples of the
nonpublic personal information you disclose.
(3) Categories of affiliates and nonaffiliated third parties to whom
you disclose. You satisfy the requirement to categorize the affiliates
and nonaffiliated third parties to whom you disclose nonpublic personal
information if you list the following categories, as applicable, and a
few examples to illustrate the types of third parties in each category.
(i) Financial service providers;
(ii) Non-financial companies; and
(iii) Others.
(4) Disclosures under exception for service providers and joint
marketers. If you disclose nonpublic personal information under the
exception in Sec. 216.13 to a nonaffiliated third party to market
products or services that you offer alone or jointly with another
financial institution, you satisfy the disclosure requirement of
paragraph (a)(5) of this section if you:
(i) List the categories of nonpublic personal information you
disclose, using the same categories and examples you used to meet the
requirements of paragraph (a)(2) of this section, as applicable; and
(ii) State whether the third party is:
(A) A service provider that performs marketing services on your
behalf or on behalf of you and another financial institution; or
(B) A financial institution with whom you have a joint marketing
agreement.
(5) Simplified notices. If you do not disclose, and do not wish to
reserve the right to disclose, nonpublic personal information about
customers or former customers to affiliates or nonaffiliated third
parties except as authorized under Secs. 216.14 and 216.15, you may
simply state that fact, in addition to the information you must provide
under paragraphs (a)(1), (a)(8), (a)(9), and (b) of this section.
(6) Confidentiality and security. You describe your policies and
practices with respect to protecting the confidentiality and security of
nonpublic personal information if you do both of the following:
(i) Describe in general terms who is authorized to have access to
the information; and
(ii) State whether you have security practices and procedures in
place to ensure the confidentiality of the information in accordance
with your policy. You are not required to describe technical information
about the safeguards you use.
(d) Short-form initial notice with opt out notice for non-
customers--(1) You may satisfy the initial notice requirements in
Secs. 216.4(a)(2), 216.7(b), and 216.7(c) for a consumer who is not a
customer by providing a short-form initial notice at the same time as
you deliver an opt out notice as required in Sec. 216.7.
(2) A short-form initial notice must:
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(i) Be clear and conspicuous;
(ii) State that your privacy notice is available upon request; and
(iii) Explain a reasonable means by which the consumer may obtain
that notice.
(3) You must deliver your short-form initial notice according to
Sec. 216.9. You are not required to deliver your privacy notice with
your short-form initial notice. You instead may simply provide the
consumer a reasonable means to obtain your privacy notice. If a consumer
who receives your short-form notice requests your privacy notice, you
must deliver your privacy notice according to Sec. 216.9.
(4) Examples of obtaining privacy notice. You provide a reasonable
means by which a consumer may obtain a copy of your privacy notice if
you:
(i) Provide a toll-free telephone number that the consumer may call
to request the notice; or
(ii) For a consumer who conducts business in person at your office,
maintain copies of the notice on hand that you provide to the consumer
immediately upon request.
(e) Future disclosures. Your notice may include:
(1) Categories of nonpublic personal information that you reserve
the right to disclose in the future, but do not currently disclose; and
(2) Categories of affiliates or nonaffiliated third parties to whom
you reserve the right in the future to disclose, but to whom you do not
currently disclose, nonpublic personal information.
(f) Sample clauses. Sample clauses illustrating some of the notice
content required by this section are included in appendix A of this
part. |
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Sec. 216.7 Form of opt out notice to
consumers; opt out methods. |
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(a)(1) Form of opt out notice. If you are required to provide an opt
out notice under Sec. 216.10(a), you must provide a clear and
conspicuous notice to each of your consumers that accurately explains
the right to opt out under that section. The notice must state:
(i) That you disclose or reserve the right to disclose nonpublic
personal information about your consumer to a nonaffiliated third party;
(ii) That the consumer has the right to opt out of that disclosure;
and
(iii) A reasonable means by which the consumer may exercise the opt
out right.
(2) Examples--(i) Adequate opt out notice. You provide adequate
notice that the consumer can opt out of the disclosure of nonpublic
personal information to a nonaffiliated third party if you:
(A) Identify all of the categories of nonpublic personal information
that you disclose or reserve the right to disclose, and all of the
categories of nonaffiliated third parties to which you disclose the
information, as described in Sec. 216.6(a)(2) and (3), and state that
the consumer can opt out of the disclosure of that information; and
(B) Identify the financial products or services that the consumer
obtains from you, either singly or jointly, to which the opt out
direction would apply.
(ii) Reasonable opt out means. You provide a reasonable means to
exercise an opt out right if you:
(A) Designate check-off boxes in a prominent position on the
relevant forms with the opt out notice;
(B) Include a reply form together with the opt out notice;
(C) Provide an electronic means to opt out, such as a form that can
be sent via electronic mail or a process at your web site, if the
consumer agrees to the electronic delivery of information; or
(D) Provide a toll-free telephone number that consumers may call to
opt out.
(iii) Unreasonable opt out means. You do not provide a reasonable
means of opting out if:
(A) The only means of opting out is for the consumer to write his or
her own letter to exercise that opt out right; or
(B) The only means of opting out as described in any notice
subsequent to the initial notice is to use a check-off box that you
provided with the initial notice but did not include with the subsequent
notice.
(iv) Specific opt out means. You may require each consumer to opt
out through a specific means, as long as that means is reasonable for
that consumer.
[[Page 384]]
(b) Same form as initial notice permitted. You may provide the opt
out notice together with or on the same written or electronic form as
the initial notice you provide in accordance with Sec. 216.4.
(c) Initial notice required when opt out notice delivered subsequent
to initial notice. If you provide the opt out notice later than required
for the initial notice in accordance with Sec. 216.4, you must also
include a copy of the initial notice with the opt out notice in writing
or, if the consumer agrees, electronically.
(d) Joint relationships--(1) If two or more consumers jointly obtain
a financial product or service from you, you may provide a single opt
out notice. Your opt out notice must explain how you will treat an opt
out direction by a joint consumer (as explained in paragraph (d)(5) of
this section).
(2) Any of the joint consumers may exercise the right to opt out.
You may either:
(i) Treat an opt out direction by a joint consumer as applying to
all of the associated joint consumers; or
(ii) Permit each joint consumer to opt out separately.
(3) If you permit each joint consumer to opt out separately, you
must permit one of the joint consumers to opt out on behalf of all of
the joint consumers.
(4) You may not require all joint consumers to opt out before you
implement any opt out direction.
(5) Example. If John and Mary have a joint checking account with you
and arrange for you to send statements to John's address, you may do any
of the following, but you must explain in your opt out notice which opt
out policy you will follow:
(i) Send a single opt out notice to John's address, but you must
accept an opt out direction from either John or Mary.
(ii) Treat an opt out direction by either John or Mary as applying
to the entire account. If you do so, and John opts out, you may not
require Mary to opt out as well before implementing John's opt out
direction.
(iii) Permit John and Mary to make different opt out directions. If
you do so:
(A) You must permit John and Mary to opt out for each other;
(B) If both opt out, you must permit both to notify you in a single
response (such as on a form or through a telephone call); and
(C) If John opts out and Mary does not, you may only disclose
nonpublic personal information about Mary, but not about John and not
about John and Mary jointly.
(e) Time to comply with opt out. You must comply with a consumer's
opt out direction as soon as reasonably practicable after you receive
it.
(f) Continuing right to opt out. A consumer may exercise the right
to opt out at any time.
(g) Duration of consumer's opt out direction--(1) A consumer's
direction to opt out under this section is effective until the consumer
revokes it in writing or, if the consumer agrees, electronically.
(2) When a customer relationship terminates, the customer's opt out
direction continues to apply to the nonpublic personal information that
you collected during or related to that relationship. If the individual
subsequently establishes a new customer relationship with you, the opt
out direction that applied to the former relationship does not apply to
the new relationship.
(h) Delivery. When you are required to deliver an opt out notice by
this section, you must deliver it according to Sec. 216.9.
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Sec. 216.8 Revised privacy notices. |
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(a) General rule. Except as otherwise authorized in this part, you
must not, directly or through any affiliate, disclose any nonpublic
personal information about a consumer to a nonaffiliated third party
other than as described in the initial notice that you provided to that
consumer under Sec. 216.4, unless:
(1) You have provided to the consumer a clear and conspicuous
revised notice that accurately describes your policies and practices;
(2) You have provided to the consumer a new opt out notice;
[[Page 385]]
(3) You have given the consumer a reasonable opportunity, before you
disclose the information to the nonaffiliated third party, to opt out of
the disclosure; and
(4) The consumer does not opt out.
(b) Examples--(1) Except as otherwise permitted by Secs. 216.13,
216.14, and 216.15, you must provide a revised notice before you:
(i) Disclose a new category of nonpublic personal information to any
nonaffiliated third party;
(ii) Disclose nonpublic personal information to a new category of
nonaffiliated third party; or
(iii) Disclose nonpublic personal information about a former
customer to a nonaffiliated third party, if that former customer has not
had the opportunity to exercise an opt out right regarding that
disclosure.
(2) A revised notice is not required if you disclose nonpublic
personal information to a new nonaffiliated third party that you
adequately described in your prior notice.
(c) Delivery. When you are required to deliver a revised privacy
notice by this section, you must deliver it according to Sec. 216.9. |
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Sec. 216.9 Delivering privacy and opt out
notices. |
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Subpart A--Privacy and Opt Out Notices
(a) How to provide notices. You must provide any privacy notices and
opt out notices, including short-form initial notices, that this part
requires so that each consumer can reasonably be expected to receive
actual notice in writing or, if the consumer agrees, electronically.
(b) (1) Examples of reasonable expectation of actual notice. You may
reasonably expect that a consumer will receive actual notice if you:
(i) Hand-deliver a printed copy of the notice to the consumer;
(ii) Mail a printed copy of the notice to the last known address of
the consumer;
(iii) For the consumer who conducts transactions electronically,
post the notice on the electronic site and require the consumer to
acknowledge receipt of the notice as a necessary step to obtaining a
particular financial product or service; or
(iv) For an isolated transaction with the consumer, such as an ATM
transaction, post the notice on the ATM screen and require the consumer
to acknowledge receipt of the notice as a necessary step to obtaining
the particular financial product or service.
(2) Examples of unreasonable expectation of actual notice. You may
not, however, reasonably expect that a consumer will receive actual
notice of your privacy policies and practices if you:
(i) Only post a sign in your branch or office or generally publish
advertisements of your privacy policies and practices; or
(ii) Send the notice via electronic mail to a consumer who does not
obtain a financial product or service from you electronically.
(c) Annual notices only. You may reasonably expect that a customer
will receive actual notice of your annual privacy notice if:
(1) The customer uses your web site to access financial products and
services electronically and agrees to receive notices at the web site,
and you post your current privacy notice continuously in a clear and
conspicuous manner on the web site; or
(2) The customer has requested that you refrain from sending any
information regarding the customer relationship, and your current
privacy notice remains available to the customer upon request.
(d) Oral description of notice insufficient. You may not provide any
notice required by this part solely by orally explaining the notice,
either in person or over the telephone.
(e) Retention or accessibility of notices for customers-(1) For
customers only, you must provide the initial notice required by
Sec. 216.4(a)(1), the annual notice required by Sec. 216.5(a), and the
revised notice required by Sec. 216.8 so that the customer can retain
them or obtain them later in writing or, if the customer agrees,
electronically.
(2) Examples of retention or accessibility. You provide a privacy
notice to the customer so that the customer can retain it or obtain it
later if you:
(i) Hand-deliver a printed copy of the notice to the customer;
[[Page 386]]
(ii) Mail a printed copy of the notice to the last known address of
the customer; or
(iii) Make your current privacy notice available on a web site (or a
link to another web site) for the customer who obtains a financial
product or service electronically and agrees to receive the notice at
the web site.
(f) Joint notice with other financial institutions. You may provide
a joint notice from you and one or more of your affiliates or other
financial institutions, as identified in the notice, as long as the
notice is accurate with respect to you and the other institutions.
(g) Joint relationships. If two or more consumers jointly obtain a
financial product or service from you, you may satisfy the initial,
annual, and revised notice requirements of Secs. 216.4(a), 216.5(a), and
216.8(a), respectively, by providing one notice to those consumers
jointly.
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|
Sec. 216.10 Limits on disclosure of
non-public personal information to nonaffiliated third parties. |
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Subpart B--Limits on Disclosures
(a) (1) Conditions for disclosure. Except as otherwise authorized in
this part, you may not, directly or through any affiliate, disclose any
nonpublic personal information about a consumer to a nonaffiliated third
party unless:
(i) You have provided to the consumer an initial notice as required
under Sec. 216.4;
(ii) You have provided to the consumer an opt out notice as required
in Sec. 216.7;
(iii) You have given the consumer a reasonable opportunity, before
you disclose the information to the nonaffiliated third party, to opt
out of the disclosure; and
(iv) The consumer does not opt out.
(2) Opt out definition. Opt out means a direction by the consumer
that you not disclose nonpublic personal information about that consumer
to a nonaffiliated third party, other than as permitted by Secs. 216.13,
216.14, and 216.15.
(3) Examples of reasonable opportunity to opt out. You provide a
consumer with a reasonable opportunity to opt out if:
(i) By mail. You mail the notices required in paragraph (a)(1) of
this section to the consumer and allow the consumer to opt out by
mailing a form, calling a toll-free telephone number, or any other
reasonable means within 30 days from the date you mailed the notices.
(ii) By electronic means. A customer opens an on-line account with
you and agrees to receive the notices required in paragraph (a)(1) of
this section electronically, and you allow the customer to opt out by
any reasonable means within 30 days after the date that the customer
acknowledges receipt of the notices in conjunction with opening the
account.
(iii) Isolated transaction with consumer. For an isolated
transaction, such as the purchase of a cashier's check by a consumer,
you provide the consumer with a reasonable opportunity to opt out if you
provide the notices required in paragraph (a)(1) of this section at the
time of the transaction and request that the consumer decide, as a
necessary part of the transaction, whether to opt out before completing
the transaction.
(b) Application of opt out to all consumers and all nonpublic
personal information--(1) You must comply with this section, regardless
of whether you and the consumer have established a customer
relationship.
(2) Unless you comply with this section, you may not, directly or
through any affiliate, disclose any nonpublic personal information about
a consumer that you have collected, regardless of whether you collected
it before or after receiving the direction to opt out from the consumer.
(c) Partial opt out. You may allow a consumer to select certain
nonpublic personal information or certain nonaffiliated third parties
with respect to which the consumer wishes to opt out. |
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Sec. 216.11 Limits on redisclosure and
reuse of information. |
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Subpart B--Limits on Disclosures
(a)(1) Information you receive under an exception. If you receive
nonpublic personal information from a nonaffiliated financial
institution under an exception in Sec. 216.14 or 216.15 of this part,
your disclosure and use of that information is limited as follows:
[[Page 387]]
(i) You may disclose the information to the affiliates of the
financial institution from which you received the information;
(ii) You may disclose the information to your affiliates, but your
affiliates may, in turn, disclose and use the information only to the
extent that you may disclose and use the information; and
(iii) You may disclose and use the information pursuant to an
exception in Sec. 216.14 or 216.15 in the ordinary course of business to
carry out the activity covered by the exception under which you received
the information.
(2) Example. If you receive a customer list from a nonaffiliated
financial institution in order to provide account processing services
under the exception in Sec. 216.14(a), you may disclose that information
under any exception in Sec. 216.14 or 216.15 in the ordinary course of
business in order to provide those services. For example, you could
disclose the information in response to a properly authorized subpoena
or to your attorneys, accountants, and auditors. You could not disclose
that information to a third party for marketing purposes or use that
information for your own marketing purposes.
(b)(1) Information you receive outside of an exception. If you
receive nonpublic personal information from a nonaffiliated financial
institution other than under an exception in Sec. 216.14 or 216.15 of
this part, you may disclose the information only:
(i) To the affiliates of the financial institution from which you
received the information;
(ii) To your affiliates, but your affiliates may, in turn, disclose
the information only to the extent that you can disclose the
information; and
(iii) To any other person, if the disclosure would be lawful if made
directly to that person by the financial institution from which you
received the information.
(2) Example. If you obtain a customer list from a nonaffiliated
financial institution outside of the exceptions in Sec. 216.14 and
216.15:
(i) You may use that list for your own purposes; and
(ii) You may disclose that list to another nonaffiliated third party
only if the financial institution from which you purchased the list
could have lawfully disclosed the list to that third party. That is, you
may disclose the list in accordance with the privacy policy of the
financial institution from which you received the list, as limited by
the opt out direction of each consumer whose nonpublic personal
information you intend to disclose, and you may disclose the list in
accordance with an exception in Sec. 216.14 or 216.15, such as to your
attorneys or accountants.
(c) Information you disclose under an exception. If you disclose
nonpublic personal information to a nonaffiliated third party under an
exception in Sec. 216.14 or 216.15 of this part, the third party may
disclose and use that information only as follows:
(1) The third party may disclose the information to your affiliates;
(2) The third party may disclose the information to its affiliates,
but its affiliates may, in turn, disclose and use the information only
to the extent that the third party may disclose and use the information;
and
(3) The third party may disclose and use the information pursuant to
an exception in Sec. 216.14 or 216.15 in the ordinary course of business
to carry out the activity covered by the exception under which it
received the information.
(d) Information you disclose outside of an exception. If you
disclose nonpublic personal information to a nonaffiliated third party
other than under an exception in Sec. 216.14 or 216.15 of this part, the
third party may disclose the information only:
(1) To your affiliates;
(2) To its affiliates, but its affiliates, in turn, may disclose the
information only to the extent the third party can disclose the
information; and
(3) To any other person, if the disclosure would be lawful if you
made it directly to that person.
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| Sec. 216.12 Limits on sharing account number information for marketing purposes. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subpart B--Limits on Disclosures
(a) General prohibition on disclosure of account numbers. You must
not, directly or through an affiliate, disclose, other than to a
consumer reporting
[[Page 388]]
agency, an account number or similar form of access number or access
code for a consumer's credit card account, deposit account, or
transaction account to any nonaffiliated third party for use in
telemarketing, direct mail marketing, or other marketing through
electronic mail to the consumer.
(b) Exceptions. Paragraph (a) of this section does not apply if you
disclose an account number or similar form of access number or access
code:
(1) To your agent or service provider solely in order to perform
marketing for your own products or services, as long as the agent or
service provider is not authorized to directly initiate charges to the
account; or
(2) To a participant in a private label credit card program or an
affinity or similar program where the participants in the program are
identified to the customer when the customer enters into the program.
(c) Examples--(1) Account number. An account number, or similar form
of access number or access code, does not include a number or code in an
encrypted form, as long as you do not provide the recipient with a means
to decode the number or code.
(2) Transaction account. A transaction account is an account other
than a deposit account or a credit card account. A transaction account
does not include an account to which third parties cannot initiate
charges.
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Sec. 216.13 Exception to opt out
requirements for services providers and joint marketing. |
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Subpart C--Exceptions
(a) General rule. (1) The opt out requirements in Secs. 216.7 and
216.10 do not apply when you provide nonpublic personal information to a
nonaffiliated third party to perform services for you or functions on
your behalf, if you:
(i) Provide the initial notice in accordance with Sec. 216.4; and
(ii) Enter into a contractual agreement with the third party that
prohibits the third party from disclosing or using the information other
than to carry out the purposes for which you disclosed the information,
including use under an exception in Sec. 216.14 or 216.15 in the
ordinary course of business to carry out those purposes.
(2) Example. If you disclose nonpublic personal information under
this section to a financial institution with which you perform joint
marketing, your contractual agreement with that institution meets the
requirements of paragraph (a)(1)(ii) of this section if it prohibits the
institution from disclosing or using the nonpublic personal information
except as necessary to carry out the joint marketing or under an
exception in Sec. 216.14 or 216.15 in the ordinary course of business to
carry out that joint marketing.
(b) Service may include joint marketing. The services a
nonaffiliated third party performs for you under paragraph (a) of this
section may include marketing of your own products or services or
marketing of financial products or services offered pursuant to joint
agreements between you and one or more financial institutions.
(c) Definition of joint agreement. For purposes of this section,
joint agreement means a written contract pursuant to which you and one
or more financial institutions jointly offer, endorse, or sponsor a
financial product or service. |
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Sec. 216.14 Exception to notice and opt
out requirements for processing and servicing transactions. |
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Subpart C--Exceptions
(a) Exceptions for processing transactions at consumer's request.
The requirements for initial notice in Sec. 216.4(a)(2), for the opt out
in Secs. 216.7 and 216.10, and for service providers and joint marketing
in Sec. 216.13 do not apply if you disclose nonpublic personal
information as necessary to effect, administer, or enforce a transaction
that a consumer requests or authorizes, or in connection with:
(1) Servicing or processing a financial product or service that a
consumer requests or authorizes;
(2) Maintaining or servicing the consumer's account with you, or
with another entity as part of a private label credit card program or
other extension of credit on behalf of such entity; or
(3) A proposed or actual securitization, secondary market sale
(including sales of servicing rights), or
[[Page 389]]
similar transaction related to a transaction of the consumer.
(b) Necessary to effect, administer, or enforce a transaction means
that the disclosure is:
(1) Required, or is one of the lawful or appropriate methods, to
enforce your rights or the rights of other persons engaged in carrying
out the financial transaction or providing the product or service; or
(2) Required, or is a usual, appropriate or acceptable method:
(i) To carry out the transaction or the product or service business
of which the transaction is a part, and record, service, or maintain the
consumer's account in the ordinary course of providing the financial
service or financial product;
(ii) To administer or service benefits or claims relating to the
transaction or the product or service business of which it is a part;
(iii) To provide a confirmation, statement, or other record of the
transaction, or information on the status or value of the financial
service or financial product to the consumer or the consumer's agent or
broker;
(iv) To accrue or recognize incentives or bonuses associated with
the transaction that are provided by you or any other party;
(v) To underwrite insurance at the consumer's request or for
reinsurance purposes, or for any of the following purposes as they
relate to a consumer's insurance: account administration, reporting,
investigating, or preventing fraud or material misrepresentation,
processing premium payments, processing insurance claims, administering
insurance benefits (including utilization review activities),
participating in research projects, or as otherwise required or
specifically permitted by Federal or State law; or
(vi) In connection with:
(A) The authorization, settlement, billing, processing, clearing,
transferring, reconciling or collection of amounts charged, debited, or
otherwise paid using a debit, credit, or other payment card, check, or
account number, or by other payment means;
(B) The transfer of receivables, accounts, or interests therein; or
(C) The audit of debit, credit, or other payment information.
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|
Sec. 216.15 Other exceptions to notice
and opt out requirements. |
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Subpart C--Exceptions
(a) Exceptions to opt out requirements. The requirements for initial
notice in Sec. 216.4(a)(2), for the opt out in Secs. 216.7 and 216.10,
and for service providers and joint marketing in Sec. 216.13 do not
apply when you disclose nonpublic personal information:
(1) With the consent or at the direction of the consumer, provided
that the consumer has not revoked the consent or direction;
(2)(i) To protect the confidentiality or security of your records
pertaining to the consumer, service, product, or transaction;
(ii) To protect against or prevent actual or potential fraud,
unauthorized transactions, claims, or other liability;
(iii) For required institutional risk control or for resolving
consumer disputes or inquiries;
(iv) To persons holding a legal or beneficial interest relating to
the consumer; or
(v) To persons acting in a fiduciary or representative capacity on
behalf of the consumer;
(3) To provide information to insurance rate advisory organizations,
guaranty funds or agencies, agencies that are rating you, persons that
are assessing your compliance with industry standards, and your
attorneys, accountants, and auditors;
(4) To the extent specifically permitted or required under other
provisions of law and in accordance with the Right to Financial Privacy
Act of 1978 (12 U.S.C. 3401 et seq.), to law enforcement agencies
(including a federal functional regulator, the Secretary of the
Treasury, with respect to 31 U.S.C. Chapter 53, Subchapter II (Records
and Reports on Monetary Instruments and Transactions) and 12 U.S.C.
Chapter 21 (Financial Recordkeeping), a State insurance authority, with
respect to any person domiciled in that insurance authority's State that
is engaged in providing insurance, and the Federal Trade Commission),
self-regulatory organizations, or for an investigation on a matter
related to public safety;
[[Page 390]]
(5)(i) To a consumer reporting agency in accordance with the Fair
Credit Reporting Act (15 U.S.C. 1681 et seq.), or
(ii) From a consumer report reported by a consumer reporting agency;
(6) In connection with a proposed or actual sale, merger, transfer,
or exchange of all or a portion of a business or operating unit if the
disclosure of nonpublic personal information concerns solely consumers
of such business or unit; or
(7)(i) To comply with Federal, State, or local laws, rules and other
applicable legal requirements;
(ii) To comply with a properly authorized civil, criminal, or
regulatory investigation, or subpoena or summons by Federal, State, or
local authorities; or
(iii) To respond to judicial process or government regulatory
authorities having jurisdiction over you for examination, compliance, or
other purposes as authorized by law.
(b) Examples of consent and revocation of consent. (1) A consumer
may specifically consent to your disclosure to a nonaffiliated insurance
company of the fact that the consumer has applied to you for a mortgage
so that the insurance company can offer homeowner's insurance to the
consumer.
(2) A consumer may revoke consent by subsequently exercising the
right to opt out of future disclosures of nonpublic personal information
as permitted under Sec. 216.7(f).
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Sec. 216.16 Protection of Fair Credit
Reporting Act. |
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Subpart D--Relation to Other Laws; Effective Date
Nothing in this part shall be construed to modify, limit, or
supersede the operation of the Fair Credit Reporting Act (15 U.S.C. 1681
et seq.), and no inference shall be drawn on the basis of the provisions
of this part regarding whether information is transaction or experience
information under section 603 of that Act. |
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Sec. 216.17 Relation to State laws. |
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Subpart D--Relation to Other Laws; Effective Date
(a) In general. This part shall not be construed as superseding,
altering, or affecting any statute, regulation, order, or interpretation
in effect in any State, except to the extent that such State statute,
regulation, order, or interpretation is inconsistent with the provisions
of this part, and then only to the extent of the inconsistency.
(b) Greater protection under State law. For purposes of this
section, a State statute, regulation, order, or interpretation is not
inconsistent with the provisions of this part if the protection such
statute, regulation, order, or interpretation affords any consumer is
greater than the protection provided under this part, as determined by
the Federal Trade Commission, after consultation with the Board, on the
Federal Trade Commission's own motion, or upon the petition of any
interested party. |
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Sec. 216.18 Effective date; transition
rule. |
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Subpart D--Relation to Other Laws; Effective Date
(a) Effective date. This part is effective November 13, 2000. In
order to provide sufficient time for you to establish policies and
systems to comply with the requirements of this part, the Board has
extended the time for compliance with this part until July 1, 2001.
(b)(1) Notice requirement for consumers who are your customers on
the compliance date. By July 1, 2001, you must have provided an initial
notice, as required by Sec. 216.4, to consumers who are your customers
on July 1, 2001.
(2) Example. You provide an initial notice to consumers who are your
customers on July 1, 2001, if, by that date, you have established a
system for providing an initial notice to all new customers and have
mailed the initial notice to all your existing customers.
(c) Two-year grandfathering of service agreements. Until July 1,
2002, a contract that you have entered into with a nonaffiliated third
party to perform services for you or functions on your behalf satisfies
the provisions of Sec. 216.13(a)(1)(ii) of this part, even if the
contract does not include a requirement that the third party maintain
the confidentiality of nonpublic personal information, as long as you
entered into the contract on or before July 1, 2000.
Appendix A to Part 216--Sample Clauses
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Financial institutions, including a group of financial holding
company affiliates that use
[[Page 391]]
a common privacy notice, may use the following sample clauses, if the
clause is accurate for each institution that uses the notice. (Note that
disclosure of certain information, such as assets, income, and
information from a consumer reporting agency, may give rise to
obligations under the Fair Credit Reporting Act, such as a requirement
to permit a consumer to opt out of disclosures to affiliates or
designation as a consumer reporting agency if disclosures are made to
nonaffiliated third parties.)
A-1--Categories of information you collect (all institutions)
You may use this clause, as applicable, to meet the requirement of
Sec. 216.6(a)(1) to describe the categories of nonpublic personal
information you collect.
Sample Clause A-1:
We collect nonpublic personal information about you from the
following sources:
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