Essentially, an institution cannot engage in information sharing practices that require it to have an opt-out within its Privacy Notice. If you provide an opt-out under the Affiliate Marketing Rule on your Privacy Notice, you must also have provided the Notice and opt-out previously or provide it separately from your Privacy Notice as well. In addition, the model Privacy Notice must be used and there cannot have been any substantive changes required to the Notice (concerning information sharing or safeguarding practices) since it was last delivered.
Eligible institutions wishing to take advantage of this alternative annual notification generally need to:
- Ensure a Privacy Notice is clearly and conspicuously posted on its website without the need for a login or other agreement.
- Mail Privacy notices within 10 days of a phone request.
These changes became effective upon publication in the Federal Register on October 28, 2014. This should give many banks the ability to forgo an annual privacy mailing. That’s good news! Just make sure that everyone involved knows and understands the conditions and requirements. We will have more information in our November newsletter (available November 1st).
Diane joined Banker’s Compliance Consulting with over 10 years of compliance experience and over 15 years of experience within the financial industry. Diane is a Certified Regulatory Compliance Manager (CRCM) and has a Bachelor’s Degree in Sociology with a concentration in Criminal Justice. She is a graduate of the Schools of Banking Compliance School and has participated in various other training opportunities throughout her career. Diane understands firsthand the struggles banks face in building and maintaining successful compliance programs. Her experience and common sense approach to consumer compliance is a great asset to our clients.
Diane and her husband have two kids who keep them busy. She enjoys running and other sports and is a big Bugs Bunny fan! She’s a bit crazy in that she does enjoy reading some of these regulations and she’s a “crazy cat lady!” Her cat tales are hilarious!