Vermont Adopts Provisions Regarding Privacy of Consumer Financial and Health Information
The Vermont Department of Financial Regulation, Banking Division, adopted provisions relating to Regulation B-2018-01 regarding privacy of consumer financial and health information. This regulation replaces Regulation B-2015-02 and is effective immediately.
Regulation B-2018-01 directs the handling of nonpublic personal information about consumers by financial institutions. “This regulation:
(1) Requires a financial institution to provide notice to individuals about its privacy policies and practices;
(2) Describes the conditions under which a financial institution may disclose nonpublic personal information about consumers to nonaffiliated third parties;
(3) Requires financial institutions to obtain consumer consent prior to disclosing that information, subject to the exceptions in Sections 14, 15, 16 and 17 of this regulation and 8 V.S.A. § 10204 and subject to the federal Fair Credit Reporting Act and Vermont Fair Credit Reporting Act; and,
(4) Provides an exemption from the provisions of 8 V.S.A. §§ 10201 et seq. for information about business customers.” (VT Regulation B-2018-01 Section 2(A))
The regulation is applicable to nonpublic personal information about individuals and nonpublic personal health information (VT Regulation B-2018-01 Section 2(B)). The following, among others, are required to comply with this regulation:
- financial institutions
- lenders, mortgage brokers, sales finance companies, and mortgage loan originators
- independent trust companies
- money services providers
- debt adjusters under
- loan servicers
- branches and agencies of foreign banks (VT Regulation B-2018-01 Section 2(C)).
Everyone subject to Regulation B-2018-01, regardless of the jurisdiction or domicile, is required to comply with the rules of the regulation when conducting transactions with Vermont consumers (VT Regulation B-2018-01 Section 2(D)).
Financial institutions are required to issue notice reflecting its privacy policies related to nonpublic personal information to customers and consumers (VT Regulation B-2018-01 Section 5(A)) and must provide this notice annually during a continued relationship (VT Regulation B-2018-01 Section 6(A)).
The full text of Regulation B-2018-01 can be found here: http://www.dfr.vermont.gov/sites/default/files/regulation-b-2018-1-privacy-of-consumer-financial-health-information.pdf
Comments are closed.