Source: https://dfr.vermont.gov/reg-bul-ord/privacy-consumer-financial-and-health-information-regulation
Timestamp: 2019-04-23 07:59:02+00:00

Document:
This regulation is promulgated pursuant to the authority granted by 8 V.S.A. §§ 10, 15, 2214, 2766, 2914, 10201 et seq., and 30203.
(4) Provides an exemption from the provisions of 8 V.S.A. §§ 10201 et seq. for information about business customers.
B. Scope. This regulation applies to: (1) nonpublic personal information about individuals who obtain financial products or services primarily for personal, family, or household purposes from the institutions listed below; and (2) all nonpublic personal health information. This regulation does not apply to information about companies or about individuals who obtain financial products or services for business, commercial, or agricultural purposes, other than for the purpose of establishing an exemption from the provisions of 8 V.S.A. §§ 10201 et seq. for information of business customers.
(9) any subsidiaries of such entities; provided, however, that this regulation does not apply to any subsidiary that is subject to a privacy law or rule implementing Title 15 U.S.C. § 6801 et seq. and is not a financial institution within the meaning of 8 V.S.A. § 10202 (5).
D. Compliance rule. A person subject to this regulation, regardless of its jurisdiction of domicile, shall comply with the provisions of this regulation for transactions with Vermont consumers.
E. Exception for information about business customers. The disclosure of financial information by a financial institution about any business customer is exempt from the prohibition in the Vermont Financial Privacy Act, 8 V.S.A. § 10203, on the disclosure of financial information relating to a customer. This exception is not intended to limit or supersede the applicability of any other state or federal law or rule that might otherwise apply to the disclosure of information relating to a business customer. For purposes of this regulation, “business customer” means any person, whether an individual or entity, that obtains a financial product or service that is not primarily for personal, family, or household purposes, including a surety or guarantor of a loan that is not made primarily for personal, family, or household purposes.
The examples in this regulation and the sample clauses in Appendix A of this regulation are not exclusive. The examples in this regulation and the sample clauses in the Appendix of this regulation provide guidance concerning the regulation’s application in ordinary circumstances. The facts and circumstances of each individual situation, however, will determine whether compliance with an example or use of a sample clause, to the extent applicable, constitutes compliance with this regulation.
A. “Affiliate” shall have the same meaning as in 8 V.S.A. § 11101 (1). The term affiliate shall also include a credit union service organization as defined in 12 U.S.C. Section 712 which is controlled by, or of which 67 % or more is owned by, a credit union or credit unions.
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.
(vii) Avoids contradictory, confusing or misleading language.
(v) In a form that combines the financial institution's notice with other information, uses distinctive type size, style, and graphic devices, such as shading or sidebars.
(b) Places 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 the financial institution organizes 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. “Commissioner” means the commissioner of the Department of Financial Regulation.
E. “Company” means any corporation, limited liability company, business trust, general or limited partnership, association, sole proprietorship or similar organization.
F. (1) “Consumer” means an individual who seeks to obtain, obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that individual's legal representative.
(a) An individual who applies to a financial institution for credit for personal, family, or household purposes is a consumer of a financial service, regardless of whether the credit is extended.
(b) An individual who provides nonpublic personal information to a financial institution 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.
(c) An individual who provides nonpublic personal information to a financial institution in connection with obtaining or seeking to obtain financial, investment, or economic advisory services is a consumer regardless of whether the financial institution establishes a continuing advisory relationship.
(d) If a financial institution holds ownership or servicing rights to an individual's loan that is used primarily for personal, family, or household purposes, the individual is the financial institution's consumer, even if the financial institution holds 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 a financial institution has ownership or servicing rights is the financial institution's consumer, even if the financial institution, or another institution with those rights, hires an agent to collect on the loan.
(e) An individual who is a consumer of another financial institution is not a financial institution's consumer solely because the financial institution acts as agent for, or provides processing or other services to, that financial institution.
(f) An individual is not a financial institution's consumer solely because he or she has designated the financial institution as trustee for a trust.
(g) An individual is not a financial institution's consumer solely because he or she is a beneficiary of a trust for which the financial institution is a trustee.
(h) An individual is not a financial institution's consumer solely because he or she is a participant or a beneficiary of an employee benefit plan that the financial institution sponsors or for which the financial institution acts as a trustee or fiduciary.
G. “Consumer reporting agency” has the same meaning as in Section 603(f) of the Fair Credit Reporting Act (15 U.S.C. § 1681a(f)) and shall include any “credit reporting agency” within the meaning of 9 V.S.A. § 2480a (3).
H. “Control” has the same meaning as in 8 V.S.A. § 11101 (17).
I. “Customer” means a consumer who has a customer relationship with a financial institution.
J. (1) “Customer relationship” means a continuing relationship between a consumer and a financial institution under which the financial institution provides one or more financial products or services to the consumer that are to be used primarily for personal, family, or household purposes.
(viii) Obtains financial, investment, or economic advisory services from the financial institution for a fee.
(iii) The financial institution sells the consumer airline tickets, travel insurance, or traveler's checks in isolated transactions.
(i) any subsidiaries of such entities.
(c) 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 a financial institution's evaluation or brokerage of information that the financial institution collects in connection with a request or an application from a consumer for a financial product or service.
(2) Prescribing, dispensing or furnishing to an individual drugs or biologicals, or medical devices or health care equipment and supplies.
N. “Health care provider” means a physician or other health care practitioner licensed, accredited or certified to perform specified health services consistent with state law, or a health care facility.
(3) Payment for the provision of health care to an individual.
Nothing in this definition shall preclude the disclosure of health information by a financial institution as necessary to process payments for the provision of health care to an individual. This definition does not require the segregation, nor does it prohibit the aggregation, of information relating to the processing of payments for the provision of health care to an individual and information concerning payments processed for any other reason.
(b) A person employed jointly by a financial institution and any company that is not the financial institution's 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 a financial institution's (or its 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) of the Bank Holding Company Act of 1956 and 8 V.S.A. § 12603 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)).
Q. “Nonpublic personal information” means nonpublic personal financial information and nonpublic personal health information.
(b) 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.
(c) 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.
(a) Nonpublic personal financial 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.
(b) Nonpublic personal financial 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.
(2) With respect to which there is a reasonable basis to believe that the information could be used to identify an individual.
(c) The financial institution otherwise obtains about a consumer in connection with providing a financial product or service to that consumer.
(vii) Information from a consumer report.
(iii) 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.
(c) Disclosures to the general public that are required to be made by federal, state, or local law.
(b) Whether an individual can direct that the information not be made available to the general public and, if so, that the financial institution's consumer has not done so.
(a) Government records. Publicly available information in government records includes information in government real estate records and security interest filings.
(b) 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.
(i) A financial institution has a reasonable basis to believe that mortgage information is lawfully made available to the general public if the financial institution has determined that the information is of the type included on the public record in the jurisdiction where the mortgage would be recorded.
(ii) A financial institution has a reasonable basis to believe that an individual's telephone number is lawfully made available to the general public if the financial institution has located the telephone number in the telephone book or the consumer has informed the financial institution that the telephone number is not unlisted.
(2) Consumer. A consumer, before the financial institution discloses any nonpublic personal information about the consumer to any nonaffiliated third party, if the financial institution makes a disclosure other than as authorized by Sections 15, 16 and 17.
(2) a notice has been provided by an affiliate, as long as the notice clearly identifies all affiliates to whom the notice applies and is accurate with respect to the financial institution and the other affiliates.
C. When the financial institution establishes a customer relationship.
(1) General rule. A financial institution establishes a customer relationship at the time the financial institution and the consumer enter into a continuing relationship.
(2) Special rule for loans. A financial institution establishes a customer relationship with a consumer when the financial institution originates a loan to the consumer for personal, family, or household purposes. If the financial institution subsequently transfers the servicing rights to that loan to another financial institution, the customer relationship transfers with the servicing rights.
(iv) Becomes the financial institution's client for the purpose of the financial institution's providing credit counseling or tax preparation services.
(ii) Purchases the servicing rights to the consumer's loan.
(2) If the initial, revised or annual notice that the financial institution most recently provided to that customer was accurate with respect to the new financial product or service, the financial institution does not need to provide a new privacy notice under subsection A of this section.
E. Exceptions to allow subsequent delivery of notice.
(b) Providing notice not later than when the financial institution establishes a customer relationship would substantially delay the customer’s transaction and the customer agrees to receive the notice at a later time.
(a) Not at customer’s election. Establishing a customer relationship is not at the customer’s election if a financial institution acquires or is assigned 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 the financial institution's acquisition.
(ii) The financial institution establishes 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 the financial institution and the customer.
(c) No substantial delay of customer’s transaction. Providing notice not later than when a financial institution establishes a customer relationship would not substantially delay the customer’s transaction when the relationship is initiated in person at the financial institution’s office or through other means by which the customer may view the notice, such as on a web site.
F. Delivery. When a financial institution is required to deliver an initial privacy notice by this section, the financial institution shall deliver it according to Section 10. If the financial institution uses a short-form initial notice for non-customers according to Section 7D, the financial institution may deliver its privacy notice according to Section 7D(3).
A. (1) General rule. Except as provided in subsection E of this section, a financial institution shall provide a clear and conspicuous notice to customers that accurately reflects its privacy policies and practices with respect to nonpublic personal information not less than annually during the continuation of the customer relationship. Annually means at least once in any period of twelve (12) consecutive months during which that relationship exists. A financial institution may define the twelve-consecutive-month period, but the financial institution shall apply it to the customer on a consistent basis.
(2) Example. A financial institution provides a notice annually if it defines the twelve-consecutive-month period as a calendar year and provides the annual notice to the customer once in each calendar year following the calendar year in which the financial institution provided the initial notice. For example, if a customer opens an account on any day of year 1, the financial institution shall provide an annual notice to that customer by December 31 of year 2.
B. (1) Termination of customer relationship. A financial institution is not required to provide an annual notice to a former customer. A former customer is an individual with whom a financial institution no longer has a continuing relationship.
(f) At the time the customer completes execution of all documents related to the real estate closing, payment for those services has been received, or the financial institution has completed all of its responsibilities with respect to the settlement, including filing documents on the public record, whichever is later.
C. Special rule for loans. If a financial institution does not have a customer relationship with a consumer under the special rule for loans in subsection C(2) of Section 5, then the financial institution need not provide an annual notice to that consumer under this section.
D. Delivery. When a financial institution is required by this section to deliver an annual privacy notice, the financial institution shall deliver it according to Section 10.
E. Exception to annual privacy notice requirement.
(e) The financial institution posts its current privacy notice continuously and in a clear and conspicuous manner on a page of its web site on which the only content is the privacy notice, without requiring the customer to provide any information such as a login name or password or agree to any conditions to access the page.
(2) Delivery of annual privacy notice after financial institution no longer meets requirements for exception. If a financial institution has been excepted from delivering an annual privacy notice pursuant to subsection E(1) of this section and changes its policies or practices in such a way that it no longer meets the requirements for the exception, the financial institution must provide a new privacy notice to customers at least 60 days prior to the effective date of the change in its policies or practices. The new privacy notice will be treated as an initial privacy notice for purposes of this regulation and the financial institution’s obligation to provide an annual privacy notice thereafter shall be determined in accordance with the requirements and exceptions of this section.
(9) Any disclosure that the financial institution makes under subsection B of this section.
B. Description of parties subject to exceptions. If a financial institution discloses nonpublic personal information as authorized under Sections 15, 16 and 17, the financial institution is not required to list those exceptions in the initial or annual privacy notices required by Sections 5 and 6. When describing the categories of parties to whom disclosure is made, the financial institution is required to state only that it makes disclosures to other affiliated or nonaffiliated third parties, as applicable, as permitted by law.
(d) Information from a consumer reporting agency.
(2) Categories of nonpublic personal financial information a financial institution discloses.
(iii) Information from consumer reports, such as a consumer’s creditworthiness and credit history.
(b) A financial institution does not adequately categorize the information that it discloses if the financial institution uses only general terms, such as transaction information about the consumer.
(c) If a financial institution reserves the right to disclose all of the nonpublic personal financial information about consumers that it collects, the financial institution may simply state that fact without describing the categories or examples of nonpublic personal financial information that the financial institution discloses.
(3) Categories of affiliates and nonaffiliated third parties to whom the financial institution discloses.
(a) A financial institution satisfies the requirement to categorize the affiliates and nonaffiliated third parties to which the financial institution discloses nonpublic personal information about consumers if the financial institution lists the following categories, as applicable, and a few examples to illustrate the types of third parties in each category.
(b) A financial institution also may categorize the affiliates and nonaffiliated third parties to which it discloses nonpublic personal information about consumers using more detailed categories.
(ii) A financial institution with whom the financial institution has a joint marketing agreement.
(5) Simplified notices. If a financial institution does not disclose, and does 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 Sections 15, 16 and 17, the financial institution may simply state that fact, in addition to the information it must provide under subsections A(1), A(8), A(9), and subsection B of this section.
(b) States whether the financial institution has security practices and procedures in place to ensure the confidentiality of the information in accordance with the financial institution’s policy. The financial institution is not required to describe technical information about the safeguards it uses.
D. Short-form initial notice with opt in notice for non-customers.
(1) A financial institution may satisfy the initial notice requirements in Sections 5A (2) and 8C for a consumer who is not a customer by providing a short-form initial notice at the same time as the financial institution delivers an opt in notice under Section 8.
(c) Explain a reasonable means by which the consumer may obtain that notice.
(3) The financial institution shall deliver its short-form initial notice according to Section 10. The financial institution is not required to deliver its privacy notice with its short-form initial notice. The financial institution instead may simply provide the consumer a reasonable means to obtain its privacy notice. If a consumer who receives the financial institution’s short-form notice requests the financial institution’s privacy notice, the financial institution shall deliver its privacy notice according to Section 10.
(b) For a consumer who conducts business in person at the financial institution’s office, maintains copies of the notice on hand that the financial institution provides to the consumer immediately upon request.
(2) Categories of affiliates or nonaffiliated third parties to whom the financial institution reserves the right in the future to disclose, but to whom the financial institution does not currently disclose, nonpublic personal financial information.
F. Sample clauses. Sample clauses illustrating some of the notice content required by this section are included in Appendix A of this regulation.
G. Federal Model Privacy Form.
(1) Vermont statutes and regulations relating to consumer privacy contain privacy notice content requirements with significant differences from federal content requirements. Among other differences, Vermont is an “opt-in” state.
(2) Federal Regulation P (Privacy of Consumer Financial Information), 12 C.F.R. Part 1016, contains a model privacy form at Appendix to Part 1016 – Model Privacy Form (“Federal Model Privacy Form”).
(3) A financial institution that uses the Federal Model Privacy Form in accordance with the instructions for use of the Model Federal Privacy Form as set forth in the Appendix to Part 1016, as supplemented by the requirements of this subsection, is in compliance with the content notice requirements of this Regulation. Use of the Federal Model Privacy Form is not required. Financial institutions may use other types of privacy notices so long as the notices comply with this Regulation.
Option 2. A financial institution can provide a generalized notice to consumers across a number of states, including Vermont, and answer “yes” to the questions in Option 1 above, provided it includes a discussion on the application of Vermont law in the “Other Important Information” box on page 2 of the Federal Model Privacy Form and complies with the requirements in subsection 5 below.
Additional information concerning our privacy policies can be found at [website link] or call [telephone number].
(b) The additional information provided on the financial institution’s website contains the information required by this regulation; to the extent such information is not already included in the financial institution’s privacy notice.
(a) Has provided to the consumer a clear and conspicuous notice, in writing or electronic form, of the categories of nonpublic personal financial information that may be disclosed and the categories of nonaffiliated third parties to whom the financial institution discloses nonpublic personal financial information.
(e) Has obtained from the consumer such affirmative consent and such consent has not been withdrawn.
(2) Unreasonable revocation of opt in direction. A means of revocation of an opt in direction is unreasonable if the only means is for the consumer to write his or her own letter or is to use a check-off box that was provided with the initial notice but is not included with subsequent notices.
(3) Duration and withdrawal of consent. A consumer’s direction to opt in under this subsection is effective until the consumer revokes it in writing or, if the consumer agrees, electronically; further provided however, any withdrawal or revocation of consent is subject to the rights of any financial institution that acted reasonably in reliance on the consent prior to knowledge of its withdrawal or revocation. When a customer relationship terminates, the customer's opt in direction continues to apply to the nonpublic personal financial information collected during or related to that relationship. If the individual subsequently establishes a new customer relationship with the financial institution, the opt in direction that applied to the former relationship does not apply to the new relationship.
(4) A financial institution may not disclose any aggregate list of consumers containing or derived from nonpublic personal financial information to a nonaffiliated third party unless the financial institution has satisfied, for each consumer on the list, the requirements of subdivisions (a), (b), (c), (d) and (e) of subsection A (1) of this section.
(5) This section shall not restrict a financial institution from disclosing nonpublic personal information as authorized in Sections 14, 15, 16 or 17.
(6) A financial institution shall retain the authorization or a copy thereof in the record of the individual who is the subject of nonpublic personal financial information.
(7) Joint relationships. If two or more consumers jointly obtain a financial product or service from a financial institution, the financial institution may only disclose nonpublic personal financial information of a consumer to a nonaffiliated third party after obtaining an affirmative consent notice from that consumer. Joint information may only be disclosed after obtaining the affirmative consent notice from all joint consumers of the financial product or service.
B. Same form as initial notice permitted. A financial institution may provide the opt in notice required by this section together with or on the same written or electronic form as the initial notice the financial institution provides in accordance with Section 5.
C. Initial notice required when opt in notice under this section delivered subsequent to initial notice. If a financial institution provides the opt in notice later than required for the initial notice in accordance with Section 5, the financial institution shall also include a copy of the initial notice with the opt in notice in writing or, if the consumer agrees, electronically.
D. Delivery. When a financial institution is required to deliver an opt in notice by this section, the financial institution shall deliver it according to Section 10.
(3) The consumer has provided affirmative consent to the disclosure described in the notice.
(c) Discloses nonpublic personal financial information about a former customer to a nonaffiliated third party, if that former customer has not given affirmative consent regarding that disclosure.
(2) A revised notice is not required if the financial institution discloses nonpublic personal financial information to a new nonaffiliated third party that the financial institution adequately described in its prior notice.
C. Delivery. When a financial institution is required to deliver a revised privacy notice by this section, the financial institution shall deliver it according to Section 10.
D. Nothing in this regulation shall relieve any financial institution of any requirement under the federal or Vermont Fair Credit Reporting Acts or regulations promulgated thereunder with respect to notice and consumer consent for disclosures to affiliates.
A. How to provide notices. A financial institution shall provide any notices that this regulation requires so that each consumer can reasonably be expected to receive actual notice in writing or, if the consumer agrees, electronically.
(d) For an isolated transaction with a consumer, such as an ATM transaction, posts the notice on the ATM screen and requires the consumer to acknowledge receipt of the notice as a necessary step to obtaining the particular financial product or service.
(b) Sends the notice via electronic mail to a consumer who does not obtain a financial product or service from the financial institution electronically.
(2) The customer has requested that the financial institution refrain from sending any information regarding the customer relationship, and the financial institution’s current privacy notice remains available to the customer upon request.
D. Oral description of notice insufficient. A financial institution may not provide any notice required by this regulation 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, a financial institution shall provide the initial notice required by Section 5A(1), the annual notice required by Section 6A, and the revised notice required by Section 9 so that the customer can retain them or obtain them later in writing or, if the customer agrees to electronic receipt, transmit them in a form that the customer can download and print.
(c) Makes its 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. Electronic receipt must include the ability to download and print the notice.
F. Joint notice with other financial institutions. A financial institution may provide a joint notice from the financial institution and one or more of its affiliates or other financial institutions, as identified in the notice, as long as the notice is accurate with respect to the financial institution and the other institutions. A financial institution also may provide a notice on behalf of another financial institution.
G. Joint relationships. If two (2) or more consumers jointly obtain a financial product or service from a financial institution, the financial institution may satisfy the initial, annual and revised notice requirements of Sections 5A, 6A and 9A, respectively, by providing one notice to those consumers jointly.
(c) The consumer has authorized the disclosure in writing or, if the consumer agrees, electronically.
(2) Opt in definition. “Opt in” means the written or, if the consumer agrees, electronic authorization of the consumer allowing a financial institution to disclose nonpublic personal financial information to a nonaffiliated third party, other than as permitted under Sections 14, 15 or 16 of this regulation.
B. Application of opt in to all consumers and all nonpublic personal financial information.
(1) A financial institution shall comply with this section, regardless of whether the financial institution and the consumer have established a customer relationship.
(2) Unless a financial institution complies with this section, the financial institution may not, directly or through any affiliate, disclose any nonpublic personal financial information about a consumer that the financial institution has collected, regardless of whether the financial institution collected it before or after providing the opt in notice.
C. Partial opt in. A financial institution may allow a consumer to select certain nonpublic personal financial information or certain nonaffiliated third parties with respect to which the consumer wishes to opt in.
(c) The financial institution may disclose and use the information pursuant to an exception in Sections 15 or 16 of this regulation, in the ordinary course of business to carry out the activity covered by the exception under which the financial institution received the information.
(2) Example. If a financial institution receives a customer list from a nonaffiliated financial institution in order to provide account processing services under the exception in Section 15, the financial institution may disclose that information under any exception in Sections 15 and 16 in the ordinary course of business in order to provide those services. For example, the financial institution could disclose the information in response to a properly authorized subpoena or to its attorneys, accountants, and auditors. The financial institution could not disclose that information to a third party for marketing purposes or use that information for its own marketing purposes.
(c) To any other person, if the disclosure would be lawful if made directly to that person by the nonaffiliated financial institution from which the financial institution received the information.
(3) The third party may disclose and use the information pursuant to an exception in Sections 15 or 16 in the ordinary course of business to carry out the activity covered by the exception under which it received the information.
(3) To any other person, if the disclosure would be lawful if the financial institution made it directly to that person.
E. Nothing in this regulation shall authorize any financial institution to make any disclosure to an affiliate not otherwise in compliance with any requirement of the federal Fair Credit Reporting Act or regulations promulgated thereunder or the Vermont Fair Credit Reporting Act, including, but not limited to, notice and consumer consent.
A. General prohibition on disclosure of account numbers. A financial institution shall 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 transaction account to any nonaffiliated third party for use in telemarketing, direct mail marketing or other marketing through electronic mail to the consumer. A financial institution shall not provide an account number or similar form of access number or code in an encrypted form to any nonaffiliated third party for use in telemarketing, direct mail marketing or other marketing through electronic mail to the consumer.
(2) To a participant in a private label credit card or affinity or similar program where the participants in the program are identified to the customer when the customer enters into the program.
(1) Account number. An account number, or similar form of access number or access code, shall include a number or code in an encrypted form.
(2) Transaction account. A transaction account is an account other than a deposit account or a credit card account. An account is not a transaction account if a third party cannot initiate charges to it.
(ii) in the event health information is provided as own transaction and experience information as defined in subdivision (i) of this subsection (c), complies with Section 20 of this regulation.
(a) If a financial institution discloses nonpublic personal information under this section to a financial institution with which the financial institution performs joint marketing, the financial institution's contractual agreement with that institution meets the requirements of subdivisions (1)(b) of subsection A 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 Sections 15 or 16 in the ordinary course of business to carry out that joint marketing.
(b) A financial institution that complies with the provisions of Section 14.A (1) (a) and (b) may provide nonpublic personal information to a service provider that is a nonaffiliated third party agent of that financial institution (e.g. a mailing service that is an independent contractor as to the financial institution) to enable the agent to print, label and mail a solicitation for the financial institution’s product on behalf of the financial institution. Such disclosure shall not be subject to the limitations of subsection A (1)(c) of this section.
B. Service may include joint marketing. The services a nonaffiliated third party performs for a financial institution under subsection A of this section may include marketing of the financial institution’s own products or services or marketing of financial products or services offered pursuant to joint agreements between the financial institution and one or more financial institutions.
C. Definition of “joint agreement.” “Joint agreement” means a written contract pursuant to which a financial institution and one or more financial institutions jointly offer, endorse or sponsor a financial product or service.
(3) A proposed or actual securitization, secondary market sale (including sales of servicing rights) or similar transaction related to a transaction of the consumer.
(8) As otherwise permitted under subchapter 2 of chapter 200 of title 8 V.S.A.
B. Examples of consent and revocation of consent.
(1) A consumer may specifically consent to the disclosure to a nonaffiliated insurance company of the fact that the consumer has applied to the financial institution for a mortgage so that the insurance company can offer homeowner’s insurance to the consumer.
(2) A consumer may revoke any authorization given to a financial institution at any time, subject to the rights of any person that acted in reliance on the authorization prior to notice of the revocation.
A. General rule. A financial institution shall not disclose nonpublic personal health information about a consumer or customer unless an authorization is obtained from the consumer or customer whose nonpublic personal health information is sought to be disclosed.
(4) any activity required pursuant to governmental reporting authority or to comply with legal process.
C. Additional categories of disclosures may be added with the approval of the commissioner to the extent they are necessary for appropriate performance of activities that are financial in nature or incidental to such financial activities as described in the Section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C. § 1843 (k)) and are fair and reasonable to the interest of consumers.
(5) Notice of the length of time for which the authorization is valid and that the consumer or customer may revoke the authorization at any time and the procedure for making a revocation.
B. An authorization for the purposes of this Article V shall specify a length of time for which the authorization shall remain valid, which in no event shall be for more than twenty-four (24) months.
C. A consumer or customer who is the subject of nonpublic personal health information may revoke an authorization provided pursuant to this Article V at any time, subject to the rights of an individual who acted in reliance on the authorization prior to notice of the revocation.
D. A financial institution shall retain the authorization or a copy thereof in the record of the individual who is the subject of nonpublic personal health information.
A request for authorization and an authorization form may be delivered to a consumer or a customer as part of an opt in notice pursuant to Section 10, provided that the request and the authorization form are clear and conspicuous. An authorization form is not required to be delivered to the consumer or customer unless the financial institution intends to disclose protected health information pursuant to Section 17A.
Nothing in this regulation modifies, limits, or supersedes the standards and provisions of 45 C.F.R. Parts 160 and 164 governing individually identifiable health information promulgated by the Secretary of Health and Human Services under the authority of sections 262 and 264 of the Health Insurance Portability and Accountability Act of 1996 (42 U.S.C. §§1320d - 1320d-8), provided, however, that persons subject to this regulation are prohibited from making disclosures under the provisions of 45 C.F.R. § 164.514 (e)(2) of those rules, without the consumer’s prior written consent. Nothing in this regulation shall be deemed to make applicable any provision of the federal Health Insurance Portability and Accountability Act of 1996 or the regulations promulgated thereunder to any financial institution not otherwise subject thereto.
Nothing in this regulation shall preempt or supersede existing state law related to medical records, health or insurance information privacy.
A. No inference shall be drawn on the basis of the provisions of this regulation regarding whether information is transaction or experience information under Section 603 of the federal Fair Credit Reporting Act.
B. Nothing in this regulation shall be construed to modify, limit or supersede the operation of the Vermont Fair Credit Reporting Act (9 V.S.A. §§ 2480a - 2480g). No inference shall be drawn on the basis of the provisions of this regulation regarding whether information is transaction or experience information under Section 2480a (2) of the Vermont Fair Credit Reporting Act. This regulation shall not be construed to extend the application of the Vermont Fair Credit Reporting Act to persons who are not residents of Vermont.
A. A financial institution shall not unfairly discriminate against a consumer or customer because that consumer or customer has not opted in to the disclosure of his or her nonpublic personal financial information pursuant to the provisions of this regulation.
B. A financial institution shall not unfairly discriminate against a consumer or customer because that consumer or customer has not authorized the disclosure of his or her nonpublic personal health information pursuant to the provisions of this regulation.
In addition to any other sanctions available to the commissioner under Vermont law for violations of this regulation, violations of this regulation are subject to the provisions of 8 V.S.A. §§ 10205 and 11601.
If any section or portion of a section of this regulation or its applicability to any person or circumstance is held invalid by a court, the remainder of the regulation or the applicability of the provision to other persons or circumstances shall not be affected.
This regulation is effective March 15, 2018.
A financial institution may use this clause, as applicable, to meet the requirement of Section 7A(1) to describe the categories of nonpublic personal information the financial institution collects.
A financial institution may use one of these clauses, as applicable, to meet the requirement of Section 7A(2) to describe the categories of nonpublic personal financial information the financial institution discloses. The financial institution may use these clauses if it discloses nonpublic personal financial information other than as permitted by the exceptions in Sections 14, 15 and 16.
• Information we receive from a consumer reporting agency, such as [provide illustrative examples, such as “your creditworthiness and credit history”].
We may disclose all of the information that we collect, as described [describe location in the notice, such as “above” or “below”].
A financial institution may use this clause, as applicable, to meet the requirements of Sections 7A(2), (3), and (4) to describe the categories of nonpublic personal information about customers and former customers that the financial institution discloses and the categories of affiliates and nonaffiliated third parties to whom the financial institution discloses. A financial institution may use this clause if the financial institution does not disclose nonpublic personal financial information to any party, other than as permitted by the exceptions in Sections 15 and 16.
A financial institution may use this clause, as applicable, to meet the requirement of Section 7A(3) to describe the categories of affiliates and nonaffiliated third parties to whom the financial institution discloses nonpublic personal information. This clause may be used if the financial institution discloses nonpublic personal financial information other than as permitted by the exceptions in Sections 14, 15 and 16, as well as when permitted by the exceptions in Sections 15 and 16.
• Others, such as [provide illustrative examples, such as “non-profit organizations”].
We may also disclose nonpublic personal information about you to third parties as permitted by law.
A financial institution may use one of these clauses, as applicable, to meet the requirements of Section 7A(5) related to the exception for service providers and joint marketing in Section 14. If a financial institution discloses nonpublic personal information under this exception, the financial institution shall describe the categories of nonpublic personal information the financial institution discloses and the categories of third parties with which the financial institution has contracted.
We may disclose all of the information we collect, as described [describe location in the notice, such as “above” or “below”] to companies that perform marketing services on our behalf.
• Information about your transactions with us or our affiliates, such as [provide illustrative examples of own transaction and experience information, such as “your account balance, payment history, parties to transactions, and credit card usage”].
A financial institution may use this clause, as applicable, to meet the requirement of Section 7A(6) to provide an explanation of the consumer’s right to authorize the disclosure of nonpublic personal financial information to nonaffiliated third parties, including the method(s) by which the consumer may exercise those rights. The financial institution may use this clause if the financial institution discloses nonpublic personal financial information to nonaffiliated third parties other than as permitted by the exceptions in Sections 14, 15 and 16.
A financial institution may use this clause, as applicable, to meet the requirement of Section 7A(8) to describe its policies and practices with respect to protecting the confidentiality and security of nonpublic personal information.
We restrict access to nonpublic personal information about you to [provide an appropriate description, such as “those employees who need to know that information to provide products or services to you”]. We maintain physical, electronic, and procedural safeguards that comply with state and federal regulations to guard your nonpublic personal information.

References: § 6801
 § 10202
 § 10203
 § 11101
 § 1681
 § 2480
 § 11101
 § 1843
 § 12603
 § 1843
 § 1843
 § 164