Section 4 Lesson 6 Introduction to Gramm-Leach-Bliley Flashcards
GLBA
The Gramm-Leach-Bliley or GLB Act is also called the financial Services Modernization Act of 1999
FTC
FTC and other agencies to enforce GLB Act
GLBA
Removing a prohibition on banks from offering investment and insurance to consumers.
NPI
Nonpublic Personal Information
Title V
Financial Privacy
Handling Consumer Information
Disclose it’s sharing policies and practices
GLBA rules
- The Safe Guard Rule requires financial institutions to implement information protection security program
- The Privacy Rule: requires financial institutions to disclose information usage policies and practices to consumers and permit them to opt out
- The Pretexting Rule: Protects against impersonation attacks to gain consumer information
Privacy Notices
Written notices are required.
If the financial institution does share NPI, it must also provide customers with
An Opt-out notice describing the customer’s right to opt out NPI sharing
A reasonable way to opt out of NPi sharing
A reasonable amount of time to opt out of NPI sharing
FTCPA
federal telephone consumer protection act by FCC
1991
DNC
DO NOT CALL REGISTRY
However, it permits a business to call consumers with whom the business has an establishment business relationship even if the consumers are on the registry.
Fine is $46517
Registry Guidelines
- Calls between before 8am or after 9PM
Anonymous calls,
Calls to cell phones
robo calls - Sellers and telemarketers are required to check with DNC at least once every 31 days and drop disconnected, registered or reassigned numbers from their contact lists.
- Companies can call consumers with whom they have established business relationships for up to 18 months after the consumer’s last purchase, delivery or payment, even if the consumer is listed on the DNC
Registry Guidelines
- Up to 3 months after an inquiry or application has been made.
- Companies can call numbers on DNC requirements by training
- When a consumer asks to be removed from the call list the company must comply immediately.
7 46517 is fine. Each call may be considered a separate violation
Mortgage Loan Advertising
Regulation N: Mortgage Acts and Practices - Advertising (MAP Rule) was introduced by CFPB. How the mortgage loans be advertised to the public
FTC enforces
The FTC which enforces compliance with Regulation N, Regulation N requires all mortgage loans ads and commercial communication regarding a mortgage credit report to be retained for at least 24 months.
Countervailing
Benefit is like a cost/benefit analysis
Prohibited Advertising Part Three
No Express or implied misrepresentation may be made about
- Product Association: It’s a misrepresentation to lead a consumer to believe the production or provider is affiliated with a government entity or organization.
- Communication Source
Ability to refinance or modify
The consumer’s likelihood of refinancing or modifying mortgage product or term including the consumer being pre-approved, must be clearly represented
Communication Source
It is misrepresentation is from the consumer’s current mortgage lender when it is not
Right to reside
The right to stay in dwelling , including for how long an under what conditions a consumer with a reverse mortgage may remain in the dwelling, must be clearly represented.
Ability to qualify
The consumer’s likelihood of getting a mortgage loan must be clearly represented
Counseling services or expert advice
Availability, type or substance of such services and the offeror’s qualifications to provide such services or advice must be clearly represented.
Enforcing Regulation N
It applies to anyone who advertises mortgage products and is under the FTC’s enforcement authority, including
- Mortgage Lenders
- Mortgage Brokers
- Mortgage Services
- Ad Agencies
- Lead Generators
CFPB, FTC and Individual states
have authority to enforce Regulation N
FTC Authority
Banks, federal credit unions and federal savings and loan institutions are not under the FTC’s enforcement authority.
