Mon, Nov 17, 2014
Washington, District Of Columbia
The Consumer Financial Protection Bureau recently published its long-awaited revisions to Regulation P which provides credit unions with some minor regulatory relief with annual privacy notice requirements.
To comply with the annual privacy notice alternative delivery method prescribed by the regulation, the credit union would have to notify the membership in a clear and conspicuous manner, not less than annually, via an account statement, coupon book, or notice/disclosure that the credit union issues under any provision of law, that the privacy notice is available on its website, it will be mailed to members who request it by telephone, and that no changes have been made to the notice. Credit unions would then be required to post their current privacy notice in a continuous, clear and conspicuous manner on a page on their websites, where the only content is the model form privacy notice. The credit union cannot utilize or request a login name or any other steps that would require a member or potential member to agree to certain conditions to access the page. Credit unions will also be required to mail members who request the privacy notice by telephone within 10 days of the request.
The credit union can use the alternative delivery method of posting its privacy notice on its website if the following conditions are met:
- The credit union cannot disclose its member’s nonpublic personal information to nonaffiliated third parties in a manner that triggers opt-out rights under the regulation
- The credit union does not include the opt-out notice required under the Fair Credit Reporting Act (603(d)(2)(A)(iii)) on its annual privacy notice
- The requirements of section 624 of the FCRA and the Affiliate Marketing Rule, if applicable, have been satisfied previously or the annual privacy notice is not the only notice provided to satisfy those requirements
- The information in the privacy notice has not changed since the member received the previous notice
- The credit union uses the model form provided in the appendix of the Regulation.