Current through Register Vol. 35, No. 6, March 26, 2024
A.
General rule. The initial, annual and revised privacy notices
that a licensee provides under 13.1.3.8 NMAC, 13.1.3.9 NMAC and 13.1.3.12 NMAC
shall include each of the following items of information, in addition to any
other information the licensee wishes to provide, that applies to the licensee
and to the consumers to whom the licensee sends its privacy notice:
(1) The categories of nonpublic personal
financial information that the licensee collects;
(2) The categories of nonpublic personal
financial information that the licensee will disclose if authorization is
obtained from the consumer whose nonpublic personal financial information is
sought to be disclosed;
(3) The
categories of affiliates and nonaffiliated third parties to whom the licensee
discloses nonpublic personal financial information, other than those parties to
whom the licensee discloses information under 13.1.3.18 NMAC and 13.1.3.19
NMAC;
(4) The categories of
nonpublic personal financial information about the licensee's former customers
that the licensee discloses and the categories of affiliates and nonaffiliated
third parties to whom the licensee discloses nonpublic personal financial
information about the licensee's former customer, other than those parties to
whom the licensee discloses information under 13.1.3.18 NMAC and 13.1.3.19
NMAC;
(5) If a licensee discloses
nonpublic personal financial information to a nonaffiliated third party under
13.1.3.17 NMAC (and no other exception in 13.1.3.18 NMAC and 13.1.3.19 NMAC
applies to that disclosure), a separate description of the categories of
information the licensee discloses and the categories of third parties with
whom the licensee has contracted;
(6) An explanation of the consumer's right
under subsection A of 13.1.3.14 NMAC to authorize or not to authorize the
disclosure of nonpublic financial personal information to nonaffiliated third
parties;
(7) Any disclosures that
the licensee makes under Section 603(d)(2)(A)(iii) of the federal Fair Credit
Reporting Act (
15 U.S.C.
1681 a(d)(2)(A)(iii) ) (that is, notices
regarding the ability to opt out of disclosures of information among
affiliates);
(8) The licensee's
policies and practices with respect to protecting the confidentiality and
security of nonpublic personal financial information; and
(9) Any disclosure that the licensee makes
under subsection B of 13.1.3.10 NMAC.
B.
Description of parties subject to
exceptions. If a licensee discloses nonpublic personal financial
information as authorized under 13.1.3.18 NMAC and 13.1.3.19 NMAC, the licensee
is not required to list those exceptions in the initial or annual privacy
notices required by 13.1.3.8 NMAC and 13.1.3.9 NMAC. When describing the
categories of parties to whom disclosure is made, the licensee is required to
state only that it makes disclosures to other affiliated or nonaffiliated third
parties, as applicable, as permitted by law.
C.
Examples.
(1)
Categories of nonpublic personal
financial information that the licensee collects. A licensee satisfies
the requirement to categorize the nonpublic personal financial information it
collects if the licensee categorizes it according to the source of the
information, as applicable:
(a) Information
from the consumer;
(b) Information
about the consumer's transactions with the licensee or its
affiliates;
(c) Information about
the consumer's transactions with nonaffiliated third parties; and
(d) Information from a consumer reporting
agency.
(2)
Categories of nonpublic personal financial information a licensee
discloses.
(a) A licensee satisfies
the requirement to categorize nonpublic personal financial information it
discloses if the licensee categorizes the information according to source, as
described in paragraph (1) of subsection C of 13.1.3.10 NMAC, as applicable,
and provides a few examples to illustrate the types of information in each
category. These might include: information from the consumer, including
application information, such as assets and income and identifying information,
such as name, address and social security number; transaction information, such
as information about balances, payment history and parties to the transaction;
and information from consumer reports, such as a consumer's creditworthiness
and credit history.
(b) A licensee
does not adequately categorize the information that it discloses if the
licensee uses only general terms, such as transaction information about the
consumer.
(3)
Categories of affiliates and nonaffiliated third parties.
(a) A licensee satisfies the requirement to
categorize the affiliates and nonaffiliated third parties if the licensee
identifies the types of businesses in which they engage.
(b) Types of businesses may be described by
general terms only if the licensee uses a few illustrative examples of
significant lines of business. For example, a licensee may use the term
financial products or services if it includes appropriate examples of
significant lines of businesses, such as life insurer, automobile insurer,
consumer banking or securities brokerage.
(c) A licensee also may categorize the
affiliates and nonaffiliated third parties using more detailed
categories.
(4)
Disclosures under exception for service providers and joint marketers.
If a licensee discloses nonpublic personal financial information under the
exception in 13.1.3.17 NMAC to a nonaffiliated third party to market products
or services that it offers alone or jointly with another financial institution,
the licensee satisfies the disclosure requirement of paragraph (5) of
subsection A of 13.1.3.10 NMAC if it:
(a)
Lists the categories of nonpublic personal financial information it will
disclose if authorization is obtained from the consumer whose nonpublic
personal information is sought to be disclosed, using the same categories and
examples the licensee used to meet the requirements of paragraph 2 of
subsection A of 13.1.3.10 NMAC, as applicable; and
(b) States whether the third party is a
service provider that performs marketing services on the licensee's behalf or
on behalf of the licensee and another financial institution; or a financial
institution with whom the licensee has a joint marketing agreement.
(5)
Simplified
notices. If a licensee does not disclose, and does not wish to reserve
the right to disclose, nonpublic personal financial information about customers
or former customers to affiliates or nonaffiliated third parties except as
authorized under 13.1.3.18 NMAC and 13.1.3.19 NMAC, the licensee may simply
state the fact, in addition to the information it shall provide under
paragraphs (1), (8) and (9) of subsection A of 13.1.3.10 NMAC and subsection B
of 13.1.3.10 NMAC.
(6)
Confidentiality and security. A licensee describes its policies and
practices with respect to protecting the confidentiality and security of
nonpublic personal financial information if it does both of the following:
(a) Describes in general terms who is
authorized to have access to the information; and
(b) States whether the licensee has security
practices and procedures in place to ensure the confidentiality of the
information in accordance with the licensee's policy. The licensee is not
required to describe technical information about the safeguards it
uses.
D.
Short-form initial notice with notice regarding request for
authorization for non-customers.
(1) A
licensee may satisfy the initial notice requirements in paragraph (2) of
subsection A of 13.1.3.8 NMAC and subsection C of 13.1.3.11 NMAC for a consumer
who is not a customer by providing a short-form initial notice at the same time
as the licensee delivers a notice regarding request for authorization as
required in 13.1.3.11 NMAC.
(2) A
short-form initial notice shall:
(a) Be clear
and conspicuous;
(b) State that the
licensee's privacy notice is available upon request; and
(c) Explain a reasonable means by which the
consumer may obtain that notice.
(3) The licensee shall deliver its short-form
initial notice according to 13.1.3.13 NMAC. The licensee is not required to
deliver its privacy notice with its short-form initial notice. The licensee
instead may simply provide the consumer a reasonable means to obtain its
privacy notice. If a consumer who receives the licensee's short-form notice
requests the licensee's privacy notice, the licensee shall deliver its privacy
notice according to 13.1.3.13 NMAC.
(4)
Examples of obtaining privacy
notice. The licensee provides a reasonable means by which a consumer may
obtain a copy of its privacy notice if the licensee:
(a) Provides a toll-free telephone number
that the consumer may call to request the notice; or
(b) For a consumer who conducts business in
person at the licensee's office, maintains copies of the notice on hand that
the licensee provides to the consumer immediately upon request.
E.
Future
disclosures. The licensee's notice may include:
(1) Categories of nonpublic personal
financial information that the licensee reserves the right to disclose in the
future, but does not currently disclose; and
(2) Categories of affiliates or nonaffiliated
third parties to whom the licensee reserves the right in the future to
disclose, but to whom the licensee does not currently disclose, nonpublic
personal financial information.
F.
Sample clauses. Sample
clauses illustrating some of the notice content required by this section are
included in 13.1.3.28 NMAC.