Source: https://www.complianceonline.com/regulation-p-privacy-of-consumer-financial-information-12714-prdad
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Matched Legal Cases: ['ART 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', 'art 216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216', '§216']

Regulation P - PRIVACY OF CONSUMER FINANCIAL INFORMATION - ComplianceOnline.com
By: www.federalreserve.gov
PART 216—PRIVACY OF CONSUMER FINANCIAL INFORMATION (REGULATION P)
§ 216.1 Purpose and scope.
§ 216.2 Model privacy form and examples.
§ 216.4 Initial privacy notice to consumers required.
§ 216.5 Annual privacy notice to customers required.
§ 216.6 Information to be included in privacy notices.
§ 216.7 Form of opt out notice to consumers; opt out methods.
§ 216.8 Revised privacy notices.
§ 216.9 Delivering privacy and opt out notices.
§ 216.10 Limits on disclosure of non-public personal information to nonaffiliated third parties.
§ 216.11 Limits on redisclosure and reuse of information.
§ 216.12 Limits on sharing account number information for marketing purposes.
§ 216.13 Exception to opt out requirements for service providers and joint marketing.
§ 216.14 Exceptions to notice and opt out requirements for processing and servicing transactions.
§ 216.15 Other exceptions to notice and opt out requirements.
§ 216.16 Protection of Fair Credit Reporting Act.
§ 216.17 Relation to State laws.
§ 216.18 Effective date; transition rule.
Appendix B to Part 216—Sample Clauses
Source: 65 FR 35206, June 1, 2000, unless otherwise noted.
(3) Provides a method for consumers to prevent a financial institution from disclosing that information to most nonaffiliated third parties by “opting out” of that disclosure, subject to the exceptions in §§216.13, 216.14, and 216.15.
(b) Scope. (1) This part applies only to nonpublic personal information about individuals who obtain financial products or services primarily for personal, family, or household purposes from the institutions listed below. This part does not apply to information about companies or about individuals who obtain financial products or services for business, commercial, or agricultural purposes. This part applies to the U. S. offices of entities for which the Board has primary supervisory authority. They are referred to in this part as “you.” These are: State member banks, bank holding companies and certain of their nonbank subsidiaries or affiliates, State uninsured branches and agencies of foreign banks, commercial lending companies owned or controlled by foreign banks, and Edge and Agreement corporations.
(2) Nothing in this part modifies, limits, or supersedes the standards 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).
(a) Model privacy form. Use of the model privacy form in appendix A of this part, consistent with the instructions in appendix A, constitutes compliance with the notice content requirements of §§216.6 and 216.7 of this part, although use of the model privacy form is not required.
(2) Examples —(i) Reasonably understandable. You make your notice reasonably understandable if you:
(2) Examples —(i) An individual who applies to you for credit for personal, family, or household purposes is a consumer of a financial service, regardless of whether the credit is extended.
(2) Examples —(i) Continuing relationship. A consumer has a continuing relationship with you if the consumer:
(i) Any person or entity with respect to any financial activity that is subject to the jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act (7 U.S.C. 1 et seq. );
(ii) The Federal Agricultural Mortgage Corporation or any entity chartered and operating under the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq. ); or
(3) Examples of lists —(i) Nonpublic personal information includes any list of individuals' names and street addresses that is derived in whole or in part using personally identifiable financial information that is not publicly available, such as account numbers.
(2) Examples —(i) Information included. Personally identifiable financial information includes:
(3) Examples —(i) Government records. Publicly available information in government records includes information in government real estate records and security interest filings.
(iii) Reasonable basis —(A) You have a reasonable basis to believe that mortgage information is lawfully made available to the general public if you have determined that the information is of the type included on the public record in the jurisdiction where the mortgage would be recorded.
(1) A State member bank, as defined in 12 CFR 208.3(g);
(2) A bank holding company, as defined in 12 CFR 225.2(c);
(3) A subsidiary (as defined in 12 CFR 225.2(o)) or affiliate of a bank holding company and a subsidiary of a State member bank, except for:
(ii) A broker or dealer that is registered under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq. );
(iv) An investment company that is registered under the Investment Company Act of 1940 (15 U.S.C. 80a–1 et seq. ); or
(4) A State agency or State branch of a foreign bank, as those terms are defined in 12 U.S.C. 3101(b) (11) and (12), the deposits of which agency or branch are not insured by the Federal Deposit Insurance Corporation;
(5) A commercial lending company, as defined in 12 CFR 211.21(f), that is owned or controlled by a foreign bank, as defined in 12 CFR 211.21(m); or
(6) A corporation organized under section 25A of the Federal Reserve Act (12 U.S.C. 611–631) or a corporation having an agreement or undertaking with the Board under section 25 of the Federal Reserve Act (12 U.S.C. 601–604a).
(2) Consumer. A consumer, before you disclose any nonpublic personal information about the consumer to any nonaffiliated third party, if you make such a disclosure other than as authorized by §§216.14 and 216.15.
(1) You do not disclose any nonpublic personal information about the consumer to any nonaffiliated third party, other than as authorized by §§216.14 and 216.15; and
(c) When you establish a customer relationship —(1) General rule. You establish a customer relationship when you and the consumer enter into a continuing relationship.
(2) Special rule for loans —You establish a customer relationship with a consumer when you originate a loan to the consumer for personal, family, or household purposes. If you subsequently transfer the servicing rights to that loan to another financial institution, the customer relationship transfers with the servicing rights.
(1) You may provide a revised privacy notice, under §216.8, that covers the customer's new financial product or service; or
(2) Examples of exceptions —(i) Not at customer's election. Establishing a customer relationship is not at the customer's election if you acquire a customer's deposit liability or the servicing rights to a customer's loan from another financial institution and the customer does not have a choice about your acquisition.
(B) You establish a customer relationship with an individual under a program authorized by Title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq. ) or similar student loan programs where loan proceeds are disbursed promptly without prior communication between you and the customer.
(f) Delivery. When you are required to deliver an initial privacy notice by this section, you must deliver it according to §216.9. If you use a short-form initial notice for non-customers according to §216.6(d), you may deliver your privacy notice according to §216.6(d)(3).
(c) Special rule for loans. If you do not have a customer relationship with a consumer under the special rule for loans in §216.4(c)(2), then you need not provide an annual notice to that consumer under this section.
(d) Delivery. When you are required to deliver an annual privacy notice by this section, you must deliver it according to §216.9.
Link to an amendment published at 74 FR 62925, Dec. 1, 2009.
(a) General rule. The initial, annual, and revised privacy notices that you provide under §§216.4, 216.5, and 216.8 must include each of the following items of information, in addition to any other information you wish to provide, that applies to you and to the consumers to whom you send your privacy notice:
(3) The categories of affiliates and nonaffiliated third parties to whom you disclose nonpublic personal information, other than those parties to whom you disclose information under §§216.14 and 216.15;
(4) The categories of nonpublic personal information about your former customers that you disclose and the categories of affiliates and nonaffiliated third parties to whom you disclose nonpublic personal information about your former customers, other than those parties to whom you disclose information under §§216.14 and 216.15;
(5) If you disclose nonpublic personal information to a nonaffiliated third party under §216.13 (and no other exception in §216.14 or 216.15 applies to that disclosure), a separate statement of the categories of information you disclose and the categories of third parties with whom you have contracted;
(6) An explanation of the consumer's right under §216.10(a) to opt out of the disclosure of nonpublic personal information to nonaffiliated third parties, including the method(s) by which the consumer may exercise that right at that time;
(b) Description of nonaffiliated third parties subject to exceptions. If you disclose nonpublic personal information to third parties as authorized under §§216.14 and 216.15, you are not required to list those exceptions in the initial or annual privacy notices required by §§216.4 and 216.5. When describing the categories with respect to those parties, it is sufficient to state that you make disclosures to other nonaffiliated companies:
(1) For your everyday business purposes, such as [ include all that apply] to process transactions, maintain account(s), respond to court orders and legal investigations, or report to credit bureaus; or
(c) Examples —(1) Categories of nonpublic personal information that you collect. You satisfy the requirement to categorize the nonpublic personal information that you collect if you list the following categories, as applicable:
(2) Categories of nonpublic personal information you disclose —(i) You satisfy the requirement to categorize the nonpublic personal information that you disclose if you list the categories described in paragraph (c)(1) of this section, as applicable, and a few examples to illustrate the types of information in each category.
(4) Disclosures under exception for service providers and joint marketers. If you disclose nonpublic personal information under the exception in §216.13 to a nonaffiliated third party to market products or services that you offer alone or jointly with another financial institution, you satisfy the disclosure requirement of paragraph (a)(5) of this section if you:
(5) Simplified notices. If you do not disclose, and do not wish to reserve the right to disclose, nonpublic personal information about customers or former customers to affiliates or nonaffiliated third parties except as authorized under §§216.14 and 216.15, you may simply state that fact, in addition to the information you must provide under paragraphs (a)(1), (a)(8), (a)(9), and (b) of this section.
(d) Short-form initial notice with opt out notice for non-customers —(1) You may satisfy the initial notice requirements in §§216.4(a)(2), 216.7(b), and 216.7(c) for a consumer who is not a customer by providing a short-form initial notice at the same time as you deliver an opt out notice as required in §216.7.
(3) You must deliver your short-form initial notice according to §216.9. You are not required to deliver your privacy notice with your short-form initial notice. You instead may simply provide the consumer a reasonable means to obtain your privacy notice. If a consumer who receives your short-form notice requests your privacy notice, you must deliver your privacy notice according to §216.9.
(f) Model privacy form. Pursuant to §216.2(a) of this part, a model privacy form that meets the notice content requirements of this section is included in appendix A of this part.
(g) Sample clauses. Sample clauses illustrating some of the notice content required by this section are included in appendix B of this part. Use of a sample clause in a privacy notice provided on or before December 31, 2010, to the extent applicable, constitutes compliance with this part.
[65 FR 35206, June 1, 2000, as amended at 74 FR 62925, Dec. 1, 2009]
(a)(1) Form of opt out notice. If you are required to provide an opt out notice under §216.10(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:
(2) Examples —(i) Adequate opt out notice. You provide adequate notice that the consumer can opt out of the disclosure of nonpublic personal information to a nonaffiliated third party if you:
(A) Identify all of the categories of nonpublic personal information that you disclose or reserve the right to disclose, and all of the categories of nonaffiliated third parties to which you disclose the information, as described in §216.6(a)(2) and (3), and state that the consumer can opt out of the disclosure of that information; and
(b) Same form as initial notice permitted. You may provide the opt out notice together with or on the same written or electronic form as the initial notice you provide in accordance with §216.4.
(c) Initial notice required when opt out notice delivered subsequent to initial notice. If you provide the opt out notice later than required for the initial notice in accordance with §216.4, you must also include a copy of the initial notice with the opt out notice in writing or, if the consumer agrees, electronically.
(d) Joint relationships —(1) If two or more consumers jointly obtain a financial product or service from you, you may provide a single opt out notice. Your opt out notice must explain how you will treat an opt out direction by a joint consumer (as explained in paragraph (d)(5) of this section).
(g) Duration of consumer's opt out direction —(1) A consumer's direction to opt out under this section is effective until the consumer revokes it in writing or, if the consumer agrees, electronically.
(h) Delivery. When you are required to deliver an opt out notice by this section, you must deliver it according to §216.9.
(i) Model privacy form. Pursuant to §216.2(a) of this part, a model privacy form that meets the notice content requirements of this section is included in appendix A of this part.
[65 FR 35206, June 1, 2000, as amended at 74 FR 62926, Dec. 1, 2009]
(a) General rule. Except as otherwise authorized in this part, you must not, directly or through any affiliate, disclose any nonpublic personal information about a consumer to a nonaffiliated third party other than as described in the initial notice that you provided to that consumer under §216.4, unless:
(b) Examples —(1) Except as otherwise permitted by §§216.13, 216.14, and 216.15, you must provide a revised notice before you:
(c) Delivery. When you are required to deliver a revised privacy notice by this section, you must deliver it according to §216.9.
(e) Retention or accessibility of notices for customers –(1) For customers only, you must provide the initial notice required by §216.4(a)(1), the annual notice required by §216.5(a), and the revised notice required by §216.8 so that the customer can retain them or obtain them later in writing or, if the customer agrees, electronically.
(g) Joint relationships. If two or more consumers jointly obtain a financial product or service from you, you may satisfy the initial, annual, and revised notice requirements of §§216.4(a), 216.5(a), and 216.8(a), respectively, by providing one notice to those consumers jointly.
(i) You have provided to the consumer an initial notice as required under §216.4;
(ii) You have provided to the consumer an opt out notice as required in §216.7;
(2) Opt out definition. Opt out means a direction by the consumer that you not disclose nonpublic personal information about that consumer to a nonaffiliated third party, other than as permitted by §§216.13, 216.14, and 216.15.
(b) Application of opt out to all consumers and all nonpublic personal information —(1) You must comply with this section, regardless of whether you and the consumer have established a customer relationship.
(a)(1) Information you receive under an exception. If you receive nonpublic personal information from a nonaffiliated financial institution under an exception in §216.14 or 216.15 of this part, your disclosure and use of that information is limited as follows:
(iii) You may disclose and use the information pursuant to an exception in §216.14 or 216.15 in the ordinary course of business to carry out the activity covered by the exception under which you received the information.
(2) Example. If you receive a customer list from a nonaffiliated financial institution in order to provide account processing services under the exception in §216.14(a), you may disclose that information under any exception in §216.14 or 216.15 in the ordinary course of business in order to provide those services. For example, you could disclose the information in response to a properly authorized subpoena or to your attorneys, accountants, and auditors. You could not disclose that information to a third party for marketing purposes or use that information for your own marketing purposes.
(b)(1) Information you receive outside of an exception. If you receive nonpublic personal information from a nonaffiliated financial institution other than under an exception in §216.14 or 216.15 of this part, you may disclose the information only:
(2) Example. If you obtain a customer list from a nonaffiliated financial institution outside of the exceptions in §216.14 and 216.15:
(ii) You may disclose that list to another nonaffiliated third party only if the financial institution from which you purchased the list could have lawfully disclosed the list to that third party. That is, you may disclose the list in accordance with the privacy policy of the financial institution from which you received the list, as limited by the opt out direction of each consumer whose nonpublic personal information you intend to disclose, and you may disclose the list in accordance with an exception in §216.14 or 216.15, such as to your attorneys or accountants.
(c) Information you disclose under an exception. If you disclose nonpublic personal information to a nonaffiliated third party under an exception in §216.14 or 216.15 of this part, the third party may disclose and use that information only as follows:
(3) The third party may disclose and use the information pursuant to an exception in §216.14 or 216.15 in the ordinary course of business to carry out the activity covered by the exception under which it received the information.
(d) Information you disclose outside of an exception. If you disclose nonpublic personal information to a nonaffiliated third party other than under an exception in §216.14 or 216.15 of this part, the third party may disclose the information only:
(c) Examples —(1) Account number. An account number, or similar form of access number or access code, does not include a number or code in an encrypted form, as long as you do not provide the recipient with a means to decode the number or code.
(a) General rule. (1) The opt out requirements in §§216.7 and 216.10 do not apply when you provide nonpublic personal information to a nonaffiliated third party to perform services for you or functions on your behalf, if you:
(i) Provide the initial notice in accordance with §216.4; and
(ii) Enter into a contractual agreement with the third party that prohibits the third party from disclosing or using the information other than to carry out the purposes for which you disclosed the information, including use under an exception in §216.14 or 216.15 in the ordinary course of business to carry out those purposes.
(2) Example. If you disclose nonpublic personal information under this section to a financial institution with which you perform joint marketing, your contractual agreement with that institution meets the requirements of paragraph (a)(1)(ii) of this section if it prohibits the institution from disclosing or using the nonpublic personal information except as necessary to carry out the joint marketing or under an exception in §216.14 or 216.15 in the ordinary course of business to carry out that joint marketing.
(a) Exceptions for processing transactions at consumer's request. The requirements for initial notice in §216.4(a)(2), for the opt out in §§216.7 and 216.10, and for service providers and joint marketing in §216.13 do not apply if you disclose nonpublic personal information as necessary to effect, administer, or enforce a transaction that a consumer requests or authorizes, or in connection with:
(a) Exceptions to opt out requirements. The requirements for initial notice in §216.4(a)(2), for the opt out in §§216.7 and 216.10, and for service providers and joint marketing in §216.13 do not apply when you disclose nonpublic personal information:
(4) To the extent specifically permitted or required under other provisions of law and in accordance with the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq. ), to law enforcement agencies (including a federal functional regulator, the Secretary of the Treasury, with respect to 31 U.S.C. Chapter 53, Subchapter II (Records and Reports on Monetary Instruments and Transactions) and 12 U.S.C. Chapter 21 (Financial Recordkeeping), a State insurance authority, with respect to any person domiciled in that insurance authority's State tha