OCC Proposes to Extend Consumer Privacy Information Collection

• March 22, 2013
• Anna DeSimone

by: Anna DeSimone

The Office of the Comptroller of the Currency (OCC) is soliciting comments concerning its information collection titled, Privacy of Consumer Financial Information (Regulation P). The OCC is also giving notice that it has sent the collection to OMB for review. Written comments should submitted by April 22, 2013.

There have been no changes to the requirements of the regulations; however, the regulations have been transferred to the Bureau of Consumer Financial Protection (CFPB) pursuant to Dodd-Frank and republished as a CFPB regulation. The burden estimates have been revised to remove the burden for national banks and Federal savings associations with over $10 billion in total assets and any affiliates thereof, which is now carried by CFPB pursuant to section 1025 of the Dodd-Frank Act.

The OCC retains supervisory and enforcement authority for national banks and Federal savings associations with total assets of $10 billion or less that are not an affiliate of an insured depository institution with over $10 billion in total assets.

The Gramm-Leach-Bliley Act (Act) requires this information collection. The CFPB’s regulation implements the Act’s notice requirements and restrictions on a financial institution’s ability to disclose nonpublic personal information about consumers to nonaffiliated third parties. The information collection requirements are as follows:
 
Initial privacy notice to consumers requirement.  A national bank or Federal savings association must provide a clear and conspicuous notice that accurately reflects its privacy policies and practices to customers and consumers.
 
Annual privacy notice to customers requirement.   A national bank or Federal savings association must provide a clear and conspicuous notice to customers that accurately reflects its privacy policies and practices not less than annually during the continuation of the customer relationship.

Revised privacy notices.   If a national bank or Federal savings association wishes to disclose information in a way that is inconsistent with the notices previously given to a consumer, the national bank or Federal savings association must provide consumers with a clear and conspicuous revised notice of the national bank’s or Federal savings association’s policies and procedures and a new opt out notice.

Form of opt out notice to consumers; opt out methods-Form of opt out notice.  If a national bank or Federal savings association is required to provide an opt-out notice , it must provide a clear and conspicuous notice to each of its consumers that accurately explains the right to opt out under that section. The notice must state:

That the national bank or Federal savings association discloses or reserves the right to disclose nonpublic personal information about its consumer to a nonaffiliated third party;

That the consumer has the right to opt out of that disclosure; and

A reasonable means by which the consumer may exercise the opt out right. A national bank or Federal savings
association provides a reasonable means to exercise an opt out right if it:

Designates check-off boxes on the relevant forms with the opt out notice;

Includes a reply form with the opt out notice;

Provides electronic means to opt out; or

Provides a toll-free number to opt out.

Consumers must take affirmative actions to exercise their rights to prevent financial institutions from sharing their information with nonaffiliated parties-

Opt out–Consumers may direct that the national bank or Federal savings association not disclose nonpublic personal information about them to a nonaffiliated third party, other than permitted by the regulation

Partial opt out–Consumer also may exercise partial opt out rights by selecting certain nonpublic personal
information or certain nonaffiliated third parties with respect to which the consumer wishes to opt out.

Reporting(consumer)–Consumers may exercise continuing right to opt out; Consumer may opt out at any time–  A consumer may exercise the right to opt out at any time. A consumer’s direction to opt out is effective until the consumer revokes it in writing or, if the consumer agrees, electronically. When a customer relationship terminates, the customer’s opt out direction continues to apply.

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