(a) Scope of opt-out. (1) In general.
Except as otherwise provided in this
section, the consumer’s election to opt
out prohibits any affiliate covered by the
opt-out notice from using eligibility
information received from another
affiliate as described in the notice to
make solicitations to the consumer.
(2) Continuing relationship. (i) In
general. If the consumer establishes a
continuing relationship with you or
your affiliate, an opt-out notice may
apply to eligibility information obtained
in connection with—
(A) A single continuing relationship
or multiple continuing relationships
that the consumer establishes with you
or your affiliates, including continuing
relationships established subsequent to
delivery of the opt-out notice, so long as
the notice adequately describes the
continuing relationships covered by the
opt-out; or
(B) Any other transaction between the
consumer and you or your affiliates as
described in the notice.
(ii) Examples of continuing
relationships. A consumer has a
continuing relationship with you or
your affiliate if the consumer—
(A) Opens a deposit or investment
account with you or your affiliate;
(B) Obtains a loan for which you or
your affiliate owns the servicing rights;
(C) Purchases an insurance product
from you or your affiliate;
(D) Holds an investment product
through you or your affiliate, such as
when you act or your affiliate acts as a
custodian for securities or for assets in
an individual retirement arrangement;
(E) Enters into an agreement or
understanding with you or your affiliate
whereby you or your affiliate undertakes
to arrange or broker a home mortgage
loan for the consumer;
(F) Enters into a lease of personal
property with you or your affiliate; or
(G) Obtains financial, investment, or
economic advisory services from you or
your affiliate for a fee.
(3) No continuing relationship. (i) In
general. If there is no continuing
relationship between a consumer and
you or your affiliate, and you or your
affiliate obtain eligibility information
about a consumer in connection with a
transaction with the consumer, such as
an isolated transaction or a credit
application that is denied, an opt-out
notice provided to the consumer only
applies to eligibility information
obtained in connection with that
transaction.
(ii) Examples of isolated transactions.
An isolated transaction occurs if–
(A) The consumer uses your or your
affiliate’s ATM to withdraw cash from
an account at another financial
institution; or
(B) You or your affiliate sells the
consumer a cashier’s check or money
order, airline tickets, travel insurance,
or traveler’s checks in isolated
transactions.
(4) Menu of alternatives. A consumer
may be given the opportunity to choose
from a menu of alternatives when
electing to prohibit solicitations, such as
by electing to prohibit solicitations from
certain types of affiliates covered by the
opt-out notice but not other types of
affiliates covered by the notice, electing
to prohibit solicitations based on certain
types of eligibility information but not
other types of eligibility information, or
electing to prohibit solicitations by
certain methods of delivery but not
other methods of delivery. However,
one of the alternatives must allow the
consumer to prohibit all solicitations
from all of the affiliates that are covered
by the notice.
(5) Special rule for a notice following
termination of all continuing
relationships. (i) In general. A consumer
must be given a new opt-out notice if,
after all continuing relationships with
you or your affiliate(s) are terminated,
the consumer subsequently establishes
another continuing relationship with
you or your affiliate(s) and the
consumer’s eligibility information is to
be used to make a solicitation. The new
opt-out notice must apply, at a
minimum, to eligibility information
obtained in connection with the new
continuing relationship. Consistent with
paragraph (b) of this section, the
consumer’s decision not to opt out after
receiving the new opt-out notice would
not override a prior opt-out election by
the consumer that applies to eligibility
information obtained in connection
with a terminated relationship,
regardless of whether the new opt-out
notice applies to eligibility information
obtained in connection with the
terminated relationship.
(ii) Example. A consumer has a
checking account with a depository
institution that is part of an affiliated
group. The consumer closes the
checking account. One year after closing
the checking account, the consumer
opens a savings account with the same
depository institution. The consumer
must be given a new notice and
opportunity to opt out before the
depository institution’s affiliates may
make solicitations to the consumer
using eligibility information obtained by
the depository institution in connection
with the new savings account
relationship, regardless of whether the
consumer opted out in connection with
the checking account.
(b) Duration of opt-out. The election
of a consumer to opt out must be
effective for a period of at least five
years (the ‘‘opt-out period’’) beginning
when the consumer’s opt-out election is
received and implemented, unless the
consumer subsequently revokes the optout
in writing or, if the consumer agrees,
electronically. An opt-out period of
more than five years may be established,
including an opt-out period that does
not expire unless revoked by the
consumer.
(c) Time of opt-out. A consumer may
opt out at any time.
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