Source: https://www.law.cornell.edu/cfr/text/12/216.4
Timestamp: 2015-09-03 07:46:51
Document Index: 384082807

Matched Legal Cases: ['art 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216', '§ 216']

12 CFR 216.4 - Initial privacy notice to consumers required. | US Law | LII / Legal Information Institute
CFR › Title 12 › Chapter II › Subchapter A › Part 216 › Subpart A › Section 216.4 12 CFR 216.4 - Initial privacy notice to consumers required.
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.
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
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.
Opens a credit card account with you;
Executes the contract to open a deposit account with you, obtains credit from you, or purchases insurance from you;
Agrees to obtain financial, economic, or investment advisory services from you for a fee; or
Becomes your client for the purpose of your providing credit counseling or tax preparation services.
You establish a customer relationship with a consumer who obtains a loan for personal, family, or household purposes when you:
Originate the loan to the consumer; or
Existing customers. When an existing customer obtains a new financial product or service from you that is to be used primarily for personal, family, or household purposes, you satisfy the initial notice requirements of paragraph (a) of this section as follows:
You may provide a revised privacy notice, under § 216.8, that covers the customer's new financial product or service; or
If the initial, revised, or annual notice that you most recently provided to that customer was accurate with respect to the new financial product or service, you do not need to provide a new privacy notice under paragraph (a) of this section.
Providing notice not later than when you establish a customer relationship would substantially delay the customer's transaction and the customer agrees to receive the notice at a later time.
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.
Substantial delay of customer's transaction. Providing notice not later than when you establish a customer relationship would substantially delay the customer's transaction when:
You and the individual agree over the telephone to enter into a customer relationship involving prompt delivery of the financial product or service; or
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.
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).