Consumer complaint received 2023-07-27
Company: STATE EMPLOYEES CREDIT UNION
State: NC
Product: Payday loan, title loan, or personal loan
Sub-product: Personal line of credit
Issue: Improper use of your report
Sub-issue: Reporting company used your report improperly

Complaint:
According to 12 CFR 1016.1- Purpose and scope. ( a ) Which governs the treatment of nonpublic personal information about consumers by financial institutions this company is only compliant with only 2 out of the 3 requirements under this section. They are in noncompliance of ( a ) ( 3 ) which states that they must provide a method for consumers to prevent a financial institution from disclosing NPI to non-affiliated 3 parties ( ex : consumers reporting agencies ) by opting out of that disclosure.

I never received such notice that was clear an conspicuous to me being advised that I had the right to opt out of the release of my NPI. The company has verbally stated that an optout notice for their company does not exist. They refuse to put it in writing .If an optout notice does exist one has not been presented to me and to it didn't not follow the lawful guideline outlined in 12 CFR 1016.3 ( b ) Definitions ( 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. 
Nor did it follow the lawful guidelines below ( 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.

Their website is also void of notices which is also noncompliance of ( iii ) Notices on Web sites. If you provide a notice on a Web site, 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.

They are also in noncompliance of 12 CFR 1016.4 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 of this section; and ( 2 ) Consumer. A consumer, before you disclose any nonpublic Personal information about the consumer to any nonaffiliated third party They are also in noncompliance with 12 CFR 1016.7 Form of opt out notice to consumers ; opt out methods.

Section ( a ) ( 1 ) Form of opt out notice. If you are required to provide an opt out notice under 1016.10 ( 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 ( 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 that, in the case Of financial institutions described in 1016.3 ( l ) ( 3 ) of this part, includes The address to which the form should be mailed ; Provide an electronic means to opt out, such as a form that can be sent Via electronic mail or a process at your Web site, if the consumer agrees to The electronic delivery of information ; or ( D ) Provide a toll-free telephone number that consumers may call to opt Out. 
( iii ) Unreasonable opt out means. You do not provide a reasonable means Of opting out if : ( A ) The only means of opting out is for the consumer to write his or her Own letter to exercise that opt out right ; or ( B ) The only means of opting out as described in any notice subsequent to The initial notice is to use a check-off box that you provided with the initial Notice but did not include with the subsequent notice. 

( g ) Time to comply with opt out. You must comply with a consumers opt out direction as soon as reasonably practicable after you receive it. 
( h ) Continuing right to opt out. A consumer may exercise the right to opt out at any time

Company response to consumer: Closed with explanation