Sec. 216.13 Exception to opt out requirements for service providers and joint marketing.
(a) General rule. (1) The opt out requirements in §§ 216.7 and 216.10 do not apply when
you provide nonpublic personal information to a nonaffiliated third party to perform services for
you or functions on your behalf, if you:
(i) Provide the initial notice in accordance with § 216.4; and
(ii) Enter into a contractual agreement with the third party that prohibits the third party from disclosing or using the information other than to carry out the purposes for which you disclosed the information, including use under an exception in § 216.14 or 216.15 in the ordinary course of business to carry out those purposes.
(2) Example. If you disclose nonpublic personal information under this section to a financial institution with which you perform joint marketing, your contractual agreement with that institution meets the requirements of paragraph (a)(1)(ii) of this section if it prohibits the institution from disclosing or using the nonpublic personal information except as necessary to carry out the joint marketing or under an exception in § 216.14 or 216.15 in the ordinary course of business to carry out that joint marketing.
(b) Service may include joint marketing. The services a nonaffiliated third party performs
for you under paragraph (a) of this section may include marketing of your own products or
services or marketing of financial products or services offered pursuant to joint agreements
between you and one or more financial institutions.
(c) Definition of joint agreement. For purposes of this section, joint agreement means a
written contract pursuant to which you and one or more financial institutions jointly offer,
endorse, or sponsor a financial product or service.
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
Print Friendly!
Email This Article!
Discuss NOW!
