If an institution shares data with unaffiliated third parties in a way that triggers customers’ rights to opt out of such sharing, then that institution generally would not be allowed to use the alternative delivery method. For this reason, financial institutions have an incentive to limit their sharing to reduce their costs.

We have a broker that is part of the bank but we do allow our customers to opt-out of sharing with them. The brokers are bank employees. It is weird that we allow the opt-out but we do. Since we allow this opt-out, we would not be exempt from providing the annual disclosure?

You got it, ahkc........ You're stuck with the annual waste of paper unless you change your practice.

I'll be pushing to change our practice! It is pointless. We don't share anything anyways. It is all bank related. It is not its own entity. The examiners at our last exam really didn't understand why we let them opt out.

Just to get it out there. in case you're wondering---

The rule requires that you provide a telephone number that the consumer can call in order to request a paper copy of your privacy notice (as if anyone in his right mind would ask!). That phone line DOES NOT HAVE TO BE TOLL-FREE. The Bureau takes a couple of hundred words on pages 53 and 54 of the document to be submitted for publication in the Federal Register to make it clear that the rule does not require the line to be toll-free or a line on which the bank will accept a collect call.

In this day and age, with so many land lines and most mobile lines including nationwide toll-free use, does anyone make collect calls anymore?

Am I reading this correctly that this is only going to effect those customers that have internet banking with us and we still have to mail out the annual notice to those that don't receive e-statements or conduct other online banking with us?

(i) The customer uses your Web site to access financial products and services electronically and agrees to receive notices at the Web site, and you post your current privacy notice continuously in a clear and conspicuous manner on the Web site; or

(ii) The customer has requested that you refrain from sending any information regarding the customer relationship, and your current privacy notice remains available to the customer upon request.

Good news. Keep reading. Revised paragraph (c)(2) provides an alternative method to (c)(1) if you can meet the conditions in (c)(2)(i)(A) through (E). And you can print the (c)(2)(ii) notice on a paper statement, coupon, etc.

Thank you Mary Beth! I was hoping it wouldn't run over into 2015.

Any thoughts on how to provide the privacy notice of availability to "loan only" customers who are not issued monthly statements or coupon books due to auto pay arrangement?

Will this situation mean the institution should mail the annual privacy "full disclosure" to the loan customers, or at least a separate mailing with the language example specified in (c)(2)(iii)?

If they only have a loan or safe deposit box with us and we cannot put a message on the statement, I would think it would be full disclosure like we do now, unless I have read something wrong. (my opinion only).

The reg states:

Convey in a clear and conspicuous manner not less than annually on an account statement, coupon book, or a notice or disclosure you are required or expressly and specifically permitted to issue to the customer under any other provision of law that your privacy notice is available on your Web site and will be mailed to the customer upon request by telephone.

I'm trying to figure out what other notice we could piggyback onto for loan and CD customers who don't normally get a statement. I'd love to be able to just send them a postcard, but if I'm reading this correctly, I can't do that...

Thank you for the responses.
While the required disclosures for CDs in Regulation DD 1030.5 would meet the qualifications; the accounts that meet the exceptions, where no notice is required (of which you stated "who don't normally get a statement")...then we are back to sending the full disclosure. At least at this point. (IMO)

I read all 94 pages, but I believe I will revisit!! I thought the intent was to simplify the required mailing of annual notices when the institution doesn't share information nor change it's policy. I do not believe simplification was achieved. (also, IMO).

I figure we'll at least save the brochures for all customers who have a DDA or Savings account, or a loan with a monthly statement. I'm looking at putting messages on the coupon books for those customers still on coupons, and then mailing to customers with CD's longer than 12 months or with SDBs, who also have no other accounts. I THINK I have my head around it.

And honestly, I'd rather spend the time and energy querying to figure out who's left than stuffing every single statement (plus paying for the brochures, extra postage, and extra manpower). So there should be SOME relief out of this.

Sounds like you have a good plan!
Of course, it depends on when it actually gets published whether or not we will be implementing the process in 2014 or 2015!
Fingers crossed it will happen quickly!
Thank you again for your response.

Do I understand correctly that if you allow any kind of opt out then you are stuck with the annual mailing? Does it matter if the opt out is for affiliate vs. non-affiliate?

Opt-out option ==> Annual mailing.

I think I was reading too much into it.

I will be sitting down with management to discuss our opt out. It is pointless since the brokerage is really just part of the bank, not its own entity. Even the the examiners at our last exam didn't really get why we offered the opt out. It was all decided all before my time.

Is everyone using the example message listed in the change? This is going to save us a little money but if it was a line shorter we would be able to make it a statement message and save a lot more.

Live 2 Comply...you're evidently in the same boat as us since our core vendor only allows 80 characters. We're stuck with an insert and stuffing them if they aren't on e-statements. We're considering just a post card to loan only/safe deposit box, etc.

Slow down there! Here's one of the requirements, from 1016.9(c)(2)(ii)(A):

"Convey in a clear and conspicuous manner not less than annually on an account statement, coupon book, or a notice or disclosure you are required or expressly and specifically permitted to issue to the customer under any other provision of law that your privacy notice is available on your Web site and will be mailed to the customer upon request by telephone. The statement must state that your privacy notice has not changed and must include a specific Web address that takes the customer directly to the page where the privacy notice is posted and a telephone number for the customer to request that it be mailed;"

You have to piggy-back the notice about where and how to get the privacy policy on a notice, statement, coupon book, etc., that you are already obligated or permitted by a different law to provide. It cannot be a stuffer; it has to be ON the notice, statement, coupon book (stapled to it, a separate page that looks like it is part of the notice/statement, etc.). It can't be a separate mailing (if you do it that way, you have to send the privacy notice just as you've been doing for years).

Under FCRA the notice only has to be given one time unless the customer's opt-out has an expiration period, in which case, the notice must be given again when a prior opt-out expires. If we provided a consumer the FCRA opt-out notice at account opening then can we use the alternate delivery method? We only include the affiliate marketing opt-out right.

^ we engage in affiliate sharing as well and this part of the amendment makes me think we can use the alternate delivery method since we provide the opt out at account opening and it does not expire:

Given that the Affiliate Marketing Rule notice and opt out is not required on the annual privacy notice (and indeed does not have to be provided annually), [51] the Bureau believes, as stated in the proposal, that including the Affiliate Marketing Rule opt-out on the annual notice should not preclude a financial institution from using the alternative delivery method. The Bureau therefore proposed § 1016.9(c)(2)(i)(C), which would have allowed a financial institution to use the alternative delivery method if it provides the customer with an opt-out right under the Affiliate Marketing Rule as long as the Regulation P annual privacy notice was not the only notice provided to satisfy the Affiliate Marketing Rule, if applicable.

Yes, if that's the only opt-out you offered, you can still use the alternative delivery method in .9(c)(2).

If we just share for our marketing purposes only can we use the alternative method?

Would a link at the bottom of the website be considered clear and conspicuous?

Is there a font requirement for this language?

"Privacy Notice” in boldface or otherwise emphasized
Privacy Notice—Federal law requires us to tell you how we collect, share, and protect your personal information. Our privacy policy has not changed and you may review our policy and practices with respect to your personal information at [Web address] or we will mail you a free copy upon request if you call us at [telephone number].