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2000 - Rules and Regulations
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PART 332PRIVACY OF CONSUMER FINANCIAL INFORMATION
Sec. 332.1
Purpose and scope.
332.2
Rule of construction.
332.3
Definitions.
Subpart APrivacy and Opt Out Notices
332.4
Initial privacy notice to consumers required.
332.5
Annual privacy notice to customers required.
332.6
Information to be included in privacy notices.
332.7
Form of opt out notice to consumers; opt out methods.
332.8
Revised privacy notices.
332.9
Delivering privacy and opt out notices.
Subpart BLimits on Disclosures
332.10
Limits on disclosure of non-public personal information to
nonaffiliated third parties.
332.11
Limits on redisclosure and reuse of information.
332.12
Limits on sharing account number information for marketing purposes.
Subpart CExceptions
332.13
Exception to opt out requirements for service providers and joint
marketing.
332.14
Exceptions to notice and opt out requirements for processing and
servicing transactions.
332.15
Other exceptions to notice and opt out requirements.
Subpart DRelation to Other Laws; Effective Date
332.16
Protection of Fair Credit Reporting Act.
332.17
Relation to state laws.
332.18
Effective date; transition rule.
Appendix A to Part
332Sample Clauses
Authority: 12 U.S.C.
1819 (Seventh and Tenth); 15 U.S.C. 6801 et seq.
SOURCE: The provisions of this part 332 appear at 65 FR 35162, June
1, 2000, except as otherwise noted.
§ 332.1 Purpose and scope.
(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 §§ 332.13, 332.14, and 332.15.
(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 United States offices of entities for which the Federal
Deposit Insurance Corporation (FDIC) has primary supervisory authority.
They are referred to in this part as "you." These are: banks
insured by the FDIC (other than members of the Federal Reserve System),
insured state branches of foreign banks, and certain subsidiaries of
such entities.
(2) Nothing in this part modifies, limits, or supersedes the
standards governing individually identifiable health information
promulgated by the Secretary of Health and
{{6-30-05 p.2390}}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).
[Codified to 12 C.F.R. § 332.1]
§ 332.2 Rule of construction.
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.
[Codified to 12 C.F.R. § 332.2]
§ 332.3 Definitions.
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, 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.
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(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 FDIC
determines.
(h) Customer means a consumer who has a customer
relationship with you.
(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
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(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 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:
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(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:
(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.
{{6-30-00 p.2394}}
(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 bank insured by the FDIC (other than a member of the
Federal Reserve System);
(2) An insured state branch of a foreign bank; and
(3) A subsidiary of either such entity except:
(i) A broker or dealer that is registered under the Securities
and Exchange Act of 1934 (15 U.S.C.
78a et seq.);
(ii) 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;
(iii) An investment company that is registered under the
Investment Company Act of 1940 (15
U.S.C. 80a--1 et seq.); or
(iv) 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.
[Codified to 12 C.F.R. § 332.3]
Subpart APrivacy and Opt Out
Notices
§ 332.4 Initial privacy notice to consumers required.
(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
§§ 332.14 and 332.15.
(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 §§ 332.14 and 332.15; and
(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 rules 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;
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(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 § 332.8,
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 § 332.9. If you use a short-form initial notice for non-customers
according to § 332.6(d), you may deliver your privacy notice
according to § 332.6(d)(3).
[Codified to 12 C.F.R. § 332.4]
§ 332.5 Annual privacy notice to customers required.
(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.
{{6-30-00 p.2396}}
(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 § 332.4(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
§ 332.9.
[Codified to 12 C.F.R. § 332.5]
§ 332.6 Information to be included in privacy notices.
(a) General rule. The initial, annual and revised
privacy notices that you provide under §§ 332.4, 332.5, and 332.8
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 §§ 332.14 and 332.15;
(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 §§ 332.14 and 332.15;
(5) If you disclose nonpublic personal information to a
nonaffiliated third party under § 332.13 (and no other exception in
§ 332.14 or 332.15 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 § 332.10(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.
(b) Description of nonaffiliated third parties subject to
exceptions. If you disclose nonpublic personal information to
third parties as authorized under §§ 332.14 and 332.15, you are not
required to list those exceptions in the initial or annual privacy
notices required
{{6-30-00 p.2397}}by §§ 332.4 and 332.5. 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 § 332.13 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 §§ 332.14 and
332.15, 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 §§ 332.4(a)(2), 332.7(b), and 332.7(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
§ 332.7.
(2) A short-form initial notice must:
{{6-30-00 p.2398}}
(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
§ 332.9. 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 § 332.9.
(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.
[Codified to 12 C.F.R. § 332.6]
§ 332.7 Form of opt out notice to consumers; opt out methods.
(a)(1) Form of opt out notice. If you are required to
provide an opt out notice under § 332.10(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 § 332.6(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
{{6-30-00 p.2399}}
(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
provide 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.
(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
§ 332.4.
(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
§ 332.4, 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 § 332.9.
[Codified to 12 C.F.R. § 332.7]
{{6-30-00 p.2400}}
§ 332.8 Revised privacy notices.
(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 § 332.4, 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;
(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
§§ 332.13, 332.14, and 332.15, 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 § 332.9.
[Codified to 12 C.F.R. § 332.8]
§ 332.9 Delivering 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
{{6-30-00 p.2401}}
(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 § 332.4(a)(1), the annual notice required by
§ 332.5(a), and the revised notice required by § 332.8 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;
(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 §§ 332.4(a),
332.5(a), and 332.8(a), respectively, by providing one notice to those
consumers jointly.
[Codified to 12 C.F.R. § 332.9]
Subpart BLimits on Disclosures
§ 332.10 Limits on disclosure of non-public personal
information to nonaffiliated third parties.
(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 § 332.4;
(ii) You have provided to the consumer an opt out notice as
required in § 332.7;
(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 §§ 332.13, 332.14, and 332.15.
(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
{{6-30-00 p.2402}}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.
[Codified to 12 C.F.R. § 332.10]
§ 332.11 Limits on redisclosure and reuse of information.
(a)(1) Information you receive under an exception. If
you receive nonpublic personal information from a nonaffiliated
financial institution under an exception in § 332.14 or 332.15 of
this part, your disclosure and use of that information is limited as
follows:
(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 § 332.14 or 332.15 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 § 332.14(a), you
may disclose that information under any exception in § 332.14 or
332.15 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
§ 332.14 or 332.15 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
§ 332.14 and 332.15:
(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 § 332.14 or 332.15, such as to your
attorneys or accountants.
{{6-30-00 p.2403}}
(c) Information you disclose under an exception. If you
disclose nonpublic personal information to a nonaffiliated third party
under an exception in § 332.14 or 332.15 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 § 332.14 or 332.15 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 § 332.14
or 332.15 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.
[Codified to 12 C.F.R. § 332.11]
§ 332.12 Limits on sharing account number information for
marketing purposes.
(a) General prohibition on disclosure of account
numbers. You must not, directly or through an affiliate,
disclose, other than to a consumer reporting 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.
[Codified to 12 C.F.R. § 332.12]
Subpart CExceptions
§ 332.13 Exception to opt out requirements for service
providers and joint marketing.
(a) General rule. (1) The opt out requirements in
§§ 332.7 and 332.10 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 § 332.4;
and
{{6-30-00 p.2404}}
(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 § 332.14 or 332.15
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 § 332.14 or 332.15 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.
[Codified to 12 C.F.R. § 332.13]
§ 332.14 Exceptions to notice and opt out requirements for
processing and servicing transactions.
(a) Exceptions for processing transactions at consumer's
request. The requirements for initial notice in § 332.4(a)(2),
for the opt out in §§ 332.7 and 332.10, and for service providers
and joint marketing in § 332.13 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 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
{{6-30-00 p.2404.01}}
(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.
[Codified to 12 C.F.R. § 332.14]
§ 332.15 Other exceptions to notice and opt out requirements.
(a) Exceptions to opt out requirements. The
requirements for initial notice in § 332.4(a)(2), for the opt out in
§§ 332.7 and 332.10, and for service providers and joint marketing
in § 332.13 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;
(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 § 332.7(f).
[Codified to 12 C.F.R. § 332.15]
{{6-30-00 p.2404.02}}
Subpart DRelation to Other Laws; Effective
Date
§ 332.16 Protection of Fair Credit Reporting Act.
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.
[Codified to 12 C.F.R. § 332.16]
§ 332.17 Relation to State laws.
(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 FDIC, on
the Federal Trade Commission's own motion, or upon the petition of any
interested party.
[Codified to 12 C.F.R. § 332.17]
§ 332.18 Effective date; transition rule.
(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 FDIC 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 § 332.4, 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
§ 332.13(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.
[Codified to 12 C.F.R.
§ 332.18]
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