Consumer complaint received 2023-01-25
Company: Mercedes Benz Financial Services
State: CA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Getting a loan or lease
Sub-issue: Credit denial

Complaint:
" on XX/XX/2023 I was denied a loan for XXXX XXXX XXXX XXXX, they did not Protect against nonpublic personal information. they gave my information to 3rd part financial institutions without my knowledge or consent, nor was it clear an conspicuous, I wasn't notified or given the opportunity to opt out of said information being disclosed '' 15 U.S. Code 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 ), each agency or authority described in section 6805 ( a ) of this title, other than the Bureau of Consumer Financial Protection, 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.

15 U.S. Code 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 institutions 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.

" they disclosed my consumer information to a non-affiliated 3rd party, witch would be XXXX. Mercedes Benz being an inhouse financial institution, there isn't a need or wasn't a clear an conspicuous disclosure that I have the right to opt out of said information being obtained '' 15 U.S. Code 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. 
" The 1st financial institution I initiated a contractual agreement with is Mercedes Benz of XXXX but because yall are inhouse Financing that makes XXXX a non-affiliated 3rd party. And according to the gramm-leach-bliley act debt collectors are considered to be financial institutions as well. So because XXXX is a non affiliated 3rd party that means Mercedes Benz XXXX XXXX didn't protect against unauthorized access to or use of such records or information which could result in substantial harm or inconvenience to me as according to 15 U.S. Code 6801 ( b ) ( 3 ) "

Company response to consumer: Closed with explanation