Current through Register Vol. 46, No. 12, March 20, 2024
(a) General rule. The initial, annual, and
revised privacy notices that a licensee provides under sections
420.4,
420.5
and
420.8 of
this Part shall include each of the following items of information that applies
to the licensee and to the consumers to whom the licensee sends its privacy
notice, in addition to any other information the licensee wishes to provide:
(1) the categories of nonpublic personal
financial information that the licensee collects;
(2) the categories of nonpublic personal
financial information that the licensee discloses;
(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 section
420.14
or
420.15
of this Part;
(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 customers, other than those parties to
whom the licensee discloses information under section
420.14
or
420.15
of this Part;
(5) if a licensee
discloses nonpublic personal financial information to a nonaffiliated third
party under section
420.13
of this Part (and no other exception in section
420.14
or
420.15
of this Part 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 section
420.10(a)
of this Part to opt out of the disclosure of nonpublic personal financial
information to nonaffiliated third parties, including the methods by which the
consumer may exercise that right at that time;
(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 information; and
(9) any disclosure that the licensee makes
under subdivision (b) of this section.
(b) Description of parties subject to
exceptions. If a licensee discloses nonpublic personal financial information as
authorized under section
420.14
or
420.15
of this Part, the licensee is not required to list those exceptions in the
initial or annual privacy notices required by sections
420.4
and
420.5
of this Part. 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 that it
collects if the licensee categorizes it according to the source of the
information, as applicable:
(i) information
from the consumer;
(ii) information
about the consumer's transactions with the licensee or its
affiliates;
(iii) information about
the consumer's transactions with nonaffiliated third parties; and
(iv) information from a consumer reporting
agency.
(2) Categories
of nonpublic personal financial information a licensee discloses.
(i) 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 this subdivision, as applicable, and provides a few examples
to illustrate the types of information in each category. These might include:
(a) information from the consumer, including
application information, such as assets and income and identifying information,
such as name, address and social security number;
(b) transaction information, such as
information about balances, payment history and parties to the transaction;
and
(c) information from consumer
reports, such as a consumer's creditworthiness and credit history.
(ii) 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.
(iii) If a licensee
reserves the right to disclose all of the nonpublic financial information about
consumers that it collects, the licensee may simply state that fact without
describing the categories or examples of nonpublic personal financial
information that the licensee discloses.
(3) Categories of affiliates and
nonaffiliated third parties to whom the licensee discloses.
(i) A licensee satisfies the requirement to
categorize the affiliates and nonaffiliated third parties to which the licensee
discloses nonpublic personal financial information about consumers if the
licensee identifies the types of businesses in which they engage.
(ii) 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.
(iii) A licensee also may categorize the
affiliates and nonaffiliated third parties to which it discloses nonpublic
personal financial information about consumers 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 section
420.13
of this Part to a nonaffiliated third party in order to market products or
services that the licensee offers alone or jointly with another financial
institution, the licensee satisfies the disclosure requirement of paragraph
(a)(5) of this section if it:
(i) lists the
categories of nonpublic personal financial information the licensee discloses,
using the same categories and examples the licensee used to meet the
requirements of paragraph (a)(2) of this section, as applicable; and
(ii) states whether the third party is:
(a) a service provider that performs
marketing services on the licensee's behalf or on behalf of the licensee and
another financial institution; or
(b) 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 sections
420.14
and
420.15
of this Part, the licensee may simply state that fact, in addition to the
information the licensee shall provide under paragraphs (a)(1), (8), (9), and
subdivision (b) of this section.
(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 the
licensee does both of the following:
(i)
describes in general terms who is authorized to have access to the information;
and
(ii) 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 opt out
notice for noncustomers.
(1) The licensee may
satisfy the initial notice requirements in sections
420.4(a)(2),
420.7(b)
and (c) of this Part for a consumer who is
not a customer by providing a short form initial notice at the same time as the
licensee delivers an opt out notice as required in section
420.7
of this Part.
(2) A short form
initial notice shall:
(i) be clear and
conspicuous;
(ii) state that a
licensee's privacy notice is available upon request; and
(iii) explain a reasonable means by which the
consumer may obtain that notice.
(3) The licensee shall deliver its short form
notice according to section
420.9 of this
Part. A licensee is not required to deliver its privacy notice with its
short-form initial notice. A licensee may instead simply provide the consumer
with a reasonable means to obtain the licensee's 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 section
420.9 of this
Part.
(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:
(i) provides a toll-free telephone number the
consumer may call to request the notice; or
(ii) 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 it 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 section
420.25
of this Part.