Gramm-Leach-Bliley Act
15 USC, Subchapter I, Sec. 6801-6809
Disclosure of Nonpublic Personal Information
Sec. |
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6801. |
Protection of nonpublic personal information. |
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(a) Privacy obligation policy.
(b) Financial institutions safeguards.
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6802. |
Obligations with respect to disclosures of personal information. |
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(a) Notice requirements.
(b) Opt out.
(c) Limits on reuse of information.
(d) Limitations on the sharing of account number information for marketing purposes.
(e) General exceptions.
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6803. |
Disclosure of institution privacy policy. |
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(a) Disclosure required.
(b) Information to be included.
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6804. |
Rulemaking. |
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(a) Regulatory authority.
(b) Authority to grant exceptions.
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6805. |
Enforcement. |
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(a) In general.
(b) Enforcement of section 6801.
(c) Absence of State action.
(d) Definitions.
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6806. |
Relation to other provisions. |
6807. |
Relation to State laws. |
|
(a) In general.
(b) Greater protection under State law.
|
6808. |
Study of information sharing among financial affiliates. |
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(a) In general.
(b) Consultation.
(c) Report.
|
6809. |
Definitions. |
Sec. 6801. Protection of nonpublic personal information
(a) Privacy obligation policy
It is the policy of the Congress that each financial institution has an affirmative and
continuing obligation to respect the privacy of its customers and to protect the security
and confidentiality of those customers' nonpublic personal information.
(b) Financial institutions safeguards
In furtherance of the policy in subsection (a) of this section, each agency or
authority described in section 6805(a) of this title shall establish appropriate standards
for the financial institutions subject to their jurisdiction relating to administrative,
technical, and physical safeguards -
(1) to insure the security and confidentiality of customer records and information;
(2) to protect against any anticipated threats or hazards to the security or integrity
of such records; and
(3) to protect against unauthorized access to or use of such records or information
which could result in substantial harm or inconvenience to any customer.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6803, 6805 of this title.
NOTE: Pub. L. 106-102, title V, Sec. 510, Nov. 12, 1999, 113 Stat. 1445, provided that:
''This subtitle (subtitle A (Sec. 501-510) of title V of Pub. L. 106-102, enacting this
subchapter and amending section 1681s of this title) shall take effect 6 months after the
date on which rules are required to be prescribed under section 504(a)(3) (15 U.S.C.
6804(a)(3)), except -
''(1) to the extent that a later date is specified in the rules prescribed under
section 504; and
''(2) that sections 504 (15 U.S.C. 6804) and 506 (enacting section 6806 of this title
and amending section 1681s of this title) shall be effective upon enactment (Nov. 12,
1999).''
Sec. 6802. Obligations with respect to disclosures of personal
information
(a) Notice requirements
Except as otherwise provided in this subchapter, a financial institution may not,
directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic
personal information, unless such financial institution provides or has provided to the
consumer a notice that complies with section 6803 of this title.
(b) Opt out
(1) In general
A financial institution may not disclose nonpublic personal information to a
nonaffiliated third party unless -
(A) such financial institution clearly and conspicuously discloses to the consumer, in
writing or in electronic form or other form permitted by the regulations prescribed under
section 6804 of this title, that such information may be disclosed to such third party;
(B) the consumer is given the opportunity, before the time that such information is
initially disclosed, to direct that such information not be disclosed to such third party;
and
(C) the consumer is given an explanation of how the consumer can exercise that
nondisclosure option.
(2) Exception
This subsection shall not prevent a financial institution from providing nonpublic
personal information to a nonaffiliated third party to perform services for or functions
on behalf of the financial institution, including marketing of the financial institution's
own products or services, or financial products or services offered pursuant to joint
agreements between two or more financial institutions that comply with the requirements
imposed by the regulations prescribed under section 6804 of this title, if the financial
institution fully discloses the providing of such information and enters into a
contractual agreement with the third party that requires the third party to maintain the
confidentiality of such information.
(c) Limits on reuse of information
Except as otherwise provided in this subchapter, a nonaffiliated third party that
receives from a financial institution nonpublic personal information under this section
shall not, directly or through an affiliate of such receiving third party, disclose such
information to any other person that is a nonaffiliated third party of both the financial
institution and such receiving third party, unless such disclosure would be lawful if made
directly to such other person by the financial institution.
(d) Limitations on the sharing of account number information for marketing purposes
A financial institution shall not disclose, other than to a consumer reporting agency,
an account number or similar form of access number or access code for a credit card
account, deposit account, or transaction account of a consumer to any nonaffiliated third
party for use in telemarketing, direct mail marketing, or other marketing through
electronic mail to the consumer.
(e) General exceptions
Subsections (a) and (b) of this section shall not prohibit the disclosure of nonpublic
personal information -
(1) as necessary to effect, administer, or enforce a transaction requested or
authorized by the consumer, or in connection with -
(A) servicing or processing a financial product or service requested or authorized by
the consumer;
(B) maintaining or servicing the consumer's account with the financial institution, or
with another entity as part of a private label credit card program or other extension of
credit on behalf of such entity; or
(C) a proposed or actual securitization, secondary market sale (including sales of
servicing rights), or similar transaction related to a transaction of the consumer;
(2) with the consent or at the direction of the consumer;
(3)(A) to protect the confidentiality or security of the financial institution's
records pertaining to the consumer, the service or product, or the transaction therein;
(B) to protect against or prevent actual or potential fraud, unauthorized transactions,
claims, or other liability; (C) for required institutional risk control, or for resolving
customer disputes or inquiries; (D) to persons holding a legal or beneficial interest
relating to the consumer; or (E) to persons acting in a fiduciary or representative
capacity on behalf of the consumer;
(4) to provide information to insurance rate advisory organizations, guaranty funds or
agencies, applicable rating agencies of the financial institution, persons assessing the
institution's compliance with industry standards, and the institution's attorneys,
accountants, and auditors;
(5) 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 subchapter II of chapter 53 of title 31, and chapter 2 of title I
of Public Law 91-508 (12 U.S.C. 1951-1959), a State insurance authority, or the Federal
Trade Commission), self-regulatory organizations, or for an investigation on a matter
related to public safety;
(6)(A) to a consumer reporting agency in accordance with the Fair Credit Reporting Act
(15 U.S.C. 1681 et seq.), or (B) from a consumer report reported by a consumer reporting
agency;
(7) 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
(8) to comply with Federal, State, or local laws, rules, and other applicable legal
requirements; to comply with a properly authorized civil, criminal, or regulatory
investigation or subpoena or summons by Federal, State, or local authorities; or to
respond to judicial process or government regulatory authorities having jurisdiction over
the financial institution for examination, compliance, or other purposes as authorized by
law.
(Pub. L. 106-102, title V, Sec. 502, Nov. 12, 1999, 113 Stat. 1437.)
REFERENCES IN TEXT
This subchapter, referred to in subsecs. (a) and (c), was in the original ''this
subtitle'', meaning subtitle A (Sec. 501 et seq.) of title V of Pub. L. 106-102, Nov. 12,
1999, 113 Stat. 1436, which enacted this subchapter and amended section 1681s of this
title.
For complete classification of subtitle A to the Code, see Tables.
The Right to Financial Privacy Act of 1978, referred to in subsec. (e)(5), is title XI
of Pub. L. 95-630, Nov. 10, 1978, 92 Stat. 3697, as amended, which is classified generally
to chapter 35 (Sec. 3401 et seq.) of Title 12, Banks and Banking. For complete
classification of this Act to the Code, see Short Title note set out under section 3401 of
Title 12 and Tables.
Chapter 2 of title I of Public Law 91-508, referred to in subsec. (e)(5), is chapter 2
(Sec. 121-129) of title I of Pub. L. 91-508, Oct. 26, 1970, 84 Stat. 1116, which is
classified generally to chapter 21 (Sec. 1951 et seq.) of Title 12, Banks and Banking. For
complete classification of chapter 2 to the Code, see Tables.
The Fair Credit Reporting Act, referred to in subsec. (e)(6)(A), is title VI of Pub. L.
90-321, as added by Pub. L. 91-508, title VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1127, as
amended, which is classified generally to subchapter III (Sec. 1681 et seq.) of chapter 41
of this title. For complete classification of this Act to the Code, see Short Title note
set out under section 1601 of this title and Tables.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6803, 6804, 6809 of this title.
Sec. 6803. Disclosure of institution privacy policy
(a) Disclosure required
At the time of establishing a customer relationship with a consumer and not less than
annually during the continuation of such relationship, a financial institution shall
provide a clear and conspicuous disclosure to such consumer, in writing or in electronic
form or other form permitted by the regulations prescribed under section 6804 of this
title, of such financial institution's policies and practices with respect to -
(1) disclosing nonpublic personal information to affiliates and nonaffiliated third
parties, consistent with section 6802 of this title, including the categories of
information that may be disclosed;
(2) disclosing nonpublic personal information of persons who have ceased to be
customers of the financial institution; and
(3) protecting the nonpublic personal information of consumers.
Such disclosures shall be made in accordance with the regulations prescribed under
section 6804 of this title.
(b) Information to be included
The disclosure required by subsection (a) of this section shall include -
(1) the policies and practices of the institution with respect to disclosing nonpublic
personal information to nonaffiliated third parties, other than agents of the institution,
consistent with section 6802 of this title, and including -
(A) the categories of persons to whom the information is or may be disclosed, other
than the persons to whom the information may be provided pursuant to section 6802(e) of
this title; and
(B) the policies and practices of the institution with respect to disclosing of
nonpublic personal information of persons who have ceased to be customers of the financial
institution;
(2) the categories of nonpublic personal information that are collected by the
financial institution;
(3) the policies that the institution maintains to protect the confidentiality and
security of nonpublic personal information in accordance with section 6801 of this title;
and
(4) the disclosures required, if any, under section 1681a(d)(2)(A)(iii) of this title.
(Pub. L. 106-102, title V, Sec. 503, Nov. 12, 1999, 113 Stat. 1439.)
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 6802 of this title.
Sec. 6804. Rulemaking
(a) Regulatory authority
(1) Rulemaking
The Federal banking agencies, the National Credit Union Administration, the Secretary
of the Treasury, the Securities and Exchange Commission, and the Federal Trade Commission
shall each prescribe, after consultation as appropriate with representatives of State
insurance authorities designated by the National Association of Insurance Commissioners,
such regulations as may be necessary to carry out the purposes of this subchapter
with respect to the financial institutions subject to their jurisdiction under section
6805 of this title.
(2) Coordination, consistency, and comparability
Each of the agencies and authorities required under paragraph (1) to prescribe
regulations shall consult and coordinate with the other such agencies and authorities for
the purposes of assuring, to the extent possible, that the regulations prescribed by each
such agency and authority are consistent and comparable with the regulations prescribed by
the other such agencies and authorities.
(3) Procedures and deadline
Such regulations shall be prescribed in accordance with applicable requirements of
title 5 and shall be issued in final form not later than 6 months after November 12, 1999.
(b) Authority to grant exceptions
The regulations prescribed under subsection (a) of this section may include such
additional exceptions to subsections (a) through (d) of section 6802 of this title as are
deemed consistent with the purposes of this subchapter.
(Pub. L. 106-102, title V, Sec. 504, Nov. 12, 1999, 113 Stat.1439.)
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6802, 6803, 6809 of this title.
Sec. 6805. Enforcement
(a) In general
This subchapter and the regulations prescribed thereunder shall be enforced by the
Federal functional regulators, the State insurance authorities, and the Federal Trade
Commission with respect to financial institutions and other persons subject to their
jurisdiction under applicable law, as follows:
(1) Under section 1818 of title 12, in the case of -
(A) national banks, Federal branches and Federal agencies of foreign banks, and any
subsidiaries of such entities (except brokers, dealers, persons providing insurance,
investment companies, and investment advisers), by the Office of the Comptroller of the
Currency;
(B) member banks of the Federal Reserve System (other than national banks), branches
and agencies of foreign banks (other than Federal branches, Federal agencies, and insured
State branches of foreign banks), commercial lending companies owned or controlled by
foreign banks, organizations operating under section 25 or 25A of the Federal Reserve Act
(12 U.S.C. 601 et seq., 611 et seq.), and bank holding companies and their nonbank
subsidiaries or affiliates (except brokers, dealers, persons providing insurance,
investment companies, and investment advisers), by the Board of Governors of the Federal
Reserve System;
(C) banks insured by the Federal Deposit Insurance Corporation (other than members of
the Federal Reserve System), insured State branches of foreign banks, and any subsidiaries
of such entities (except brokers, dealers, persons providing insurance, investment
companies, and investment advisers), by the Board of Directors of the Federal Deposit
Insurance Corporation; and
(D) savings associations the deposits of which are insured by the Federal Deposit
Insurance Corporation, and any subsidiaries of such savings associations (except brokers,
dealers, persons providing insurance, investment companies, and investment advisers), by
the Director of the Office of Thrift Supervision.
(2) Under the Federal Credit Union Act (12 U.S.C. 1751 et seq.), by the Board of the
National Credit Union Administration with respect to any federally insured credit union,
and any subsidiaries of such an entity.
(3) Under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), by the
Securities and Exchange Commission with respect to any broker or dealer.
(4) Under the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.), by the
Securities and Exchange Commission with respect to investment companies.
(5) Under the Investment Advisers Act of 1940 (15 U.S.C. 80b-1
et seq.), by the Securities and Exchange Commission with respect to investment advisers
registered with the Commission under such Act.
(6) Under State insurance law, in the case of any person engaged in providing
insurance, by the applicable State insurance authority of the State in which the person is
domiciled, subject to section 6701 of this title.
(7) Under the Federal Trade Commission Act (15 U.S.C. 41 et seq.), by the Federal Trade
Commission for any other financial institution or other person that is not subject to the
jurisdiction of any agency or authority under paragraphs (1) through (6) of this
subsection.
(b) Enforcement of section 6801
(1) In general
Except as provided in paragraph (2), the agencies and authorities described in
subsection (a) of this section shall implement the standards prescribed under section
6801(b) of this title in the same manner, to the extent practicable, as standards
prescribed pursuant to section 1831p-1(a) of title 12 are implemented pursuant to such
section.
(2) Exception
The agencies and authorities described in paragraphs (3), (4), (5), (6), and (7) of
subsection (a) of this section shall implement the standards prescribed under section
6801(b) of this title by rule with respect to the financial institutions and other persons
subject to their respective jurisdictions under subsection (a) of this section.
(c) Absence of State action
If a State insurance authority fails to adopt regulations to carry out this subchapter,
such State shall not be eligible to override, pursuant to section 1831x(g)(2)(B)(iii) of
title 12, the insurance customer protection regulations prescribed by a Federal banking
agency under section 1831x(a) of title 12.
(d) Definitions
The terms used in subsection (a)(1) of this section that are not defined in this
subchapter or otherwise defined in section 1813(s) of title 12 shall have the same meaning
as given in section 3101 of title 12.
(Pub. L. 106-102, title V, Sec. 505, Nov. 12, 1999, 113 Stat. 1440.)
REFERENCES IN TEXT
Section 25 of the Federal Reserve Act, referred to in subsec. (a)(1)(B), is classified
to subchapter I (Sec. 601 et seq.) of chapter 6 of Title 12, Banks and Banking. Section
25A of the Federal Reserve Act is classified to subchapter II (Sec. 611 et seq.) of
chapter 6 of Title 12.
The Federal Credit Union Act, referred to in subsec. (a)(2), is act June 26, 1934, ch.
750, 48 Stat. 1216, as amended, which is classified generally to chapter 14 (Sec. 1751 et
seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code,
see section 1751 of Title 12 and Tables.
The Securities Exchange Act of 1934, referred to in subsec. (a)(3), is act June 6,
1934, ch. 404, 48 Stat. 881, as amended, which is classified principally to chapter 2B
(Sec. 78a et seq.) of this title. For complete classification of this Act to the Code, see
section 78a of this title and Tables.
The Investment Company Act of 1940, referred to in subsec. (a)(4), is title I of act
Aug. 22, 1940, ch. 686, 54 Stat. 789, as amended, which is classified generally to
subchapter I (Sec. 80a-1 et seq.) of chapter 2D of this title. For complete classification
of this Act to the Code, see section 80a-51 of this title and Tables.
The Investment Advisers Act of 1940, referred to in subsec. (a)(5), is title II of act
Aug. 22, 1940, ch. 686, 54 Stat. 847, as amended, which is classified generally to
subchapter II (Sec. 80b-1 et seq.) of chapter 2D of this title. For complete
classification of this Act to the Code, see section 80b-20 of this title and Tables.
The Federal Trade Commission Act, referred to in subsec. (a)(7), is act Sept. 26, 1914,
ch. 311, 38 Stat. 717, as amended, which is classified generally to subchapter I (Sec. 41
et seq.) of chapter 2 of this title. For complete classification of this Act to the Code,
see section 58 of this title and Tables.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 6801, 6804, 6807 of this title.
Sec. 6806. Relation to other provisions
Except for the amendments made by subsections (a) and (b), nothing in this chapter
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 chapter regarding whether information is transaction or experience
information under section 603 of such Act (15 U.S.C. 1681a).
(Pub. L. 106-102, title V, Sec. 506(c), Nov. 12, 1999, 113 Stat. 1442.)
REFERENCES IN TEXT
Amendments made by subsections (a) and (b), referred to in text, means amendments made
by section 506(a) and (b) of Pub. L. 106-102, which amended section 1681s of this title.
This chapter, referred to in text, was in the original ''this title'', meaning title V
of Pub. L. 106-102, Nov. 12, 1999, 113 Stat. 1436, as amended, which enacted this chapter
and amended section 1681s of this title. For complete classification of title V to the
Code, see Tables.
The Fair Credit Reporting Act, referred to in text, is title VI of Pub. L. 90-321, as
added by Pub. L. 91-508, title VI, Sec. 601, Oct. 26, 1970, 84 Stat. 1127, as amended,
which is classified generally to subchapter III (Sec. 1681 et seq.) of chapter 41 of this
title. For complete classification of this Act to the Code, see Short Title note set out
under section 1601 of this title and Tables.
Sec. 6807. Relation to State laws
(a) In general
This subchapter and the amendments made by this subchapter 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 statute, regulation, order, or
interpretation is inconsistent with the provisions of this subchapter, 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 subchapter if the protection such statute,
regulation, order, or interpretation affords any person is greater than the protection
provided under this subchapter and the amendments made by this subchapter, as determined
by the Federal Trade Commission, after consultation with the agency or authority
with jurisdiction under section 6805(a) of this title of either the person that initiated
the complaint or that is the subject of the complaint, on its own motion or upon the
petition of any interested party.
(Pub. L. 106-102, title V, Sec. 507, Nov. 12, 1999, 113 Stat. 1442.)
REFERENCES IN TEXT
This subchapter, referred to in text, was in the original ''this subtitle'', meaning
subtitle A (Sec. 501-510) of title V of Pub. L. 106-102, Nov. 12, 1999, 113 Stat. 1436,
which enacted this subchapter and amended section 1681s of this title. For complete
classification of subtitle A to the Code, see Tables.
Sec. 6808. Study of information sharing among financial
affiliates
(a) In general
The Secretary of the Treasury, in conjunction with the Federal functional regulators
and the Federal Trade Commission, shall conduct a study of information sharing practices
among financial institutions and their affiliates. Such study shall include -
(1) the purposes for the sharing of confidential customer information with affiliates
or with nonaffiliated third parties;
(2) the extent and adequacy of security protections for such information;
(3) the potential risks for customer privacy of such sharing of information;
(4) the potential benefits for financial institutions and affiliates of such sharing of
information;
(5) the potential benefits for customers of such sharing of information;
(6) the adequacy of existing laws to protect customer privacy;
(7) the adequacy of financial institution privacy policy and privacy rights disclosure
under existing law;
(8) the feasibility of different approaches, including opt-out and opt-in, to permit
customers to direct that confidential information not be shared with affiliates and
nonaffiliated third parties; and
(9) the feasibility of restricting sharing of information for specific uses or of
permitting customers to direct the uses for which information may be shared.
(b) Consultation
The Secretary shall consult with representatives of State insurance authorities
designated by the National Association of Insurance Commissioners, and also with financial
services industry, consumer organizations and privacy groups, and other representatives of
the general public, in formulating and conducting the study required by subsection (a) of
this section.
(c) Report
On or before January 1, 2002, the Secretary shall submit a report to the Congress
containing the findings and conclusions of the study required under subsection (a) of this
section, together with such recommendations for legislative or administrative action as
may be appropriate.
(Pub. L. 106-102, title V, Sec. 508, Nov. 12, 1999, 113 Stat.1442.)
Sec. 6809. Definitions
As used in this subchapter:
(1) Federal banking agency
The term ''Federal banking agency'' has the same meaning as given in section 1813 of
title 12.
(2) Federal functional regulator
The term ''Federal functional regulator'' means -
(A) the Board of Governors of the Federal Reserve System;
(B) the Office of the Comptroller of the Currency;
(C) the Board of Directors of the Federal Deposit Insurance Corporation;
(D) the Director of the Office of Thrift Supervision;
(E) the National Credit Union Administration Board; and
(F) the Securities and Exchange Commission.
(3) Financial institution
(A) In general
The term ''financial institution'' means any institution the business of which is
engaging in financial activities as described in section 1843(k) of title 12.
(B) Persons subject to CFTC regulation
Notwithstanding subparagraph (A), the term ''financial institution'' does not include
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.).
(C) Farm credit institutions
Notwithstanding subparagraph (A), the term ''financial institution'' does not include
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.).
(D) Other secondary market institutions
Notwithstanding subparagraph (A), the term ''financial institution'' does not include
institutions chartered by Congress specifically to engage in transactions described in
section 6802(e)(1)(C) of this title, as long as such institutions do not sell or transfer
nonpublic personal information to a nonaffiliated third party.
(4) Nonpublic personal information
(A) The term ''nonpublic personal information'' means personally identifiable financial
information -
(i) provided by a consumer to a financial institution;
(ii) resulting from any transaction with the consumer or any service performed for the
consumer; or
(iii) otherwise obtained by the financial institution.
(B) Such term does not include publicly available information, as such term is defined
by the regulations prescribed under section 6804 of this title.
(C) Notwithstanding subparagraph (B), such term -
(i) shall include any list, description, or other grouping of consumers (and publicly
available information pertaining to them) that is derived using any nonpublic personal
information other than publicly available information; but
(ii) shall not include any list, description, or other grouping of consumers (and
publicly available information pertaining to them) that is derived without using any
nonpublic personal information.
(5) Nonaffiliated third party
The term ''nonaffiliated third party'' means any entity that is not an affiliate of, or
related by common ownership or affiliated by corporate control with, the financial
institution, but does not include a joint employee of such institution.
(6) Affiliate
The term ''affiliate'' means any company that controls, is controlled by, or is under
common control with another company.
(7) Necessary to effect, administer, or enforce
The term ''as necessary to effect, administer, or enforce the transaction'' means -
(A) the disclosure is required, or is a usual, appropriate, or acceptable method, to
carry out the transaction or the product or service business of which the transaction is a
part, and record or service or maintain the consumer's account in the ordinary course of
providing the financial service or financial product, or to administer or service benefits
or claims relating to the transaction or the product or service business of which it is a
part, and includes -
(i) providing the consumer or the consumer's agent or broker with a confirmation,
statement, or other record of the transaction, or information on the status or value of
the financial service or financial product; and
(ii) the accrual or recognition of incentives or bonuses associated with the
transaction that are provided by the financial institution or any other party;
(B) the disclosure is required, or is one of the lawful or appropriate methods, to
enforce the rights of the financial institution or of other persons engaged in carrying
out the financial transaction, or providing the product or service;
(C) the disclosure is required, or is a usual, appropriate, or acceptable method, for
insurance underwriting 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
(D) the disclosure is required, or is a usual, appropriate or acceptable method, in
connection with -
(i) 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;
(ii) the transfer of receivables, accounts or interests therein; or
(iii) the audit of debit, credit or other payment information.
(8) State insurance authority
The term ''State insurance authority'' means, in the case of any person engaged in
providing insurance, the State insurance authority of the State in which the person is
domiciled.
(9) Consumer
The term ''consumer'' means an individual who obtains, from a financial institution,
financial products or services which are to be used primarily for personal, family, or
household purposes, and also means the legal representative of such an individual.
(10) Joint agreement
The term ''joint agreement'' means a formal written contract pursuant to which two or
more financial institutions jointly offer, endorse, or sponsor a financial product or
service, and as may be further defined in the regulations prescribed under section 6804 of
this title.
(11) Customer relationship
The term ''time of establishing a customer relationship'' shall be defined by the
regulations prescribed under section 6804 of this title, and shall, in the case of a
financial institution engaged in extending credit directly to consumers to finance
purchases of goods or services, mean the time of establishing the credit relationship with
the consumer.
(Pub. L. 106-102, title V, Sec. 509, Nov. 12, 1999, 113 Stat. 1443.)
REFERENCES IN TEXT
The Commodity Exchange Act, referred to in par. (3)(B), is act Sept. 21, 1922, ch. 369,
42 Stat. 998, as amended, which is classified generally to chapter 1 (Sec. 1 et seq.) of
Title 7, Agriculture. For complete classification of this Act to the Code, see section 1
of Title 7 and Tables.
The Farm Credit Act of 1971, referred to in par. (3)(C), is Pub. L. 92-181, Dec. 10,
1971, 85 Stat. 583, as amended, which is classified generally to chapter 23 (Sec. 2001 et
seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code,
see Short Title note set out under section 2001 of Title 12 and Tables.
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