Reg P: Privacy Flashcards
WHO is covered under Reg P?
Consumers
What is the difference between a consumer and a customer?
A consumer is a person who applies for, obtains, or has obtained a financial product or service that is to be used primarily for personal, family or household purposes.
A customer is any consumer who has a customer relationship (having a continued relationship over time) with the bank.
What is non-public personal information?
Personally-identifiable financial information. In a nutshell, it’s everything you know about your customer.
Banks can not disclose non-public personal information about consumers to non-affiliated third parties without what?
Providing an opt-out notice and waiting 30 days
When must the bank provide the Privacy Policy to customers?
At the time the relationship is established (in writing) and annually thereafter (or published on the website)
When must the bank provide an opt-out notice in the privacy policy?
If the bank plans to share information with a non-affiliated third party.
What are the three exceptions for providing non-public personal information about a customer to non-affiliated third parties?
Marketing
Processing or servicing
Miscellaneous
A bank may provide customer information to a non-affiliated third party to perform services for the bank or functions on the bank’s behalf if the bank has done what two things?
- Provided the privacy notice to the customer and
- Entered into a contract with the third party
T/F: The bank may provide information to a non-affiliated third party as necessary to carry out a transaction for a consumer or to administer or maintain the product or service of which the transaction is a part without allowing the consumer to opt-out of that sharing.
True
T/F: The bank may NOT provide information to a non-affiliated third party to service or process a product or service requested or authorized by the consumer without allowing the consumer to opt-out of that sharing.
False, they are permitted to do so. This is an exception.
What is the “miscellaneous” exception under Reg P for allowing banks to share NPPI without allowing the consumer to opt out of that sharing?
Laundry list of exceptions, such as providing info to regulators, courts, credit bureaus, ratings agencies, attorneys, accountants, or as required by law, etc.
