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#1299257 - 12/04/09 07:50 PM Re: New model privacy form adopted
PStateBank Offline
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PStateBank
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Posts: 498
Texas
Originally Posted By: Georgia Plum
Maybe the government is going about this the wrong way. They should set up standards for each type

Level 1 -We don't share (except with required core processors).

Level 2 - We only share with affiliates.

Level 3 - We share with anyone and everyone who will pay for it.

Banks would be required to post a sticker on the door saying what level they are.
Government would be required to 'educate' the consumer on what the 3 levels mean.
No opt in/opt out.
Consumer can then pick their bank based on whether they want their information shared or not.


I love this!!!!!!! Can you imagine the government trying to educate the public... I mean they do such a good job at writing "clear and conspicuous laws to protect the reasonable person from the big bad bank"...
Last edited by PStateBank; 12/04/09 07:57 PM. Reason: Sarcasm
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General Discussion
#1342876 - 02/12/10 05:34 PM Re: New model privacy form adopted PStateBank
MyKidsMom Offline
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TEXAS
RebekahL, I was thinking the same thing..

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#1344703 - 02/17/10 07:02 PM Re: New model privacy form adopted MyKidsMom
MHuff Offline
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LA
Our brochure for new deposits includes our privacy disclosure. Will we no longer be able to include it in this brochure and, therefore, be required to provide it separately?
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#1344747 - 02/17/10 07:28 PM Re: New model privacy form adopted MHuff
Ted Dreyer Offline
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Correct. The new form cannot be in a multi-panel display like a brochure. You can deliver it along with your deposit account brochure, but not as part of the same document.

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#1350505 - 03/01/10 05:44 PM Re: New model privacy form adopted Ted Dreyer
MHuff Offline
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Our consumer loan app has a section with a privacy disclosure on it. Is that acceptable by itself, or would the new form need to be provided in addition to it?
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#1351744 - 03/03/10 07:02 PM Re: New model privacy form adopted MHuff
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Calling any gurus or wannabee gurus. I believe there is an error on the BOL Tools, Reg. P Privacy-Model Form that should be corrected before someone makes an error with their privacy notice (Yikes!).

Take a look at the end of paragraph #4 (this is some backgraound material, discussion of the model forms, Word 2007, etc.). The last sentence in the 4th paragraph reads: "In addition, there are a few sections your institution is permitted to omit; and you may remove them as needed (for instance, if the notice is not being provided with other institutions the section titled "What we do" may be removed."
Based on the Federal Register dated 12-1-2009 (Vol. 74, No.229, p.62944), I believe it should state "if the notice is not being provided with other institutions the "who we are" section should be deleted....NOT the "What we do" section.
If you agreee, please make the change in Bankers Tools as many bankers are trying to slug through this new model notice in time for their April annual mailings......(most are thinking "I might as well get this over with this year as who knows what new projects we will have next year!!!).

Thank you.
"A wannabee guru"

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#1351809 - 03/03/10 08:02 PM Re: New model privacy form adopted Laketime
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I've temporarily broken the link to the Privacy forms. Here is the page from the Federal Register. http://www.bankersonline.com/regs/216/a216_model.pdf

I'm not understanding what part you are referring to that requires changing.
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#1351814 - 03/03/10 08:05 PM Re: New model privacy form adopted Andy_Z
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You can contact me directly at andyz@bankersonline.com if you'd like.
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#1352006 - 03/03/10 11:53 PM Re: New model privacy form adopted Andy_Z
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I think the problem is the form first. On page two both top sections are headed with "What we do" whereas the forms in the FR are "Who we are" and "What we do" so the form needs to be changed, which will happen tonight, and the instructions on the landing page need to indicate the first section, "Who we are."

So the section was mislabeled and that lead to the problem.

Laketime, you get a BOL pat on the back.
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#1352071 - 03/04/10 01:13 PM Re: New model privacy form adopted Andy_Z
Laketime Offline
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Thanks Andy. The change looks good. Now I need to get back to work to continue modifying our Privacy Notice using the new format so we can meet our annual April mailing month (and change it on our website, deposit platform, loan system, etc., etc.).

Don't panic everybody that hasn't followed this issue too closely......I'm completing this now so I do not have to deal with it next year!

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#1362083 - 03/22/10 10:13 PM Re: New model privacy form adopted Laketime
wanted Offline
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wanted
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Posts: 99
United States
Let me get this straight.
1. Bank mails annual current/old privacy notice June 2010.
2 January 1, 2011 bank gives new model notice to new customers and changes to the model notice on bank website.
3. Bank does annual mailing of of new model privacy notice June 2011.

Will this work?

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#1362480 - 03/23/10 06:05 PM Re: New model privacy form adopted wanted
rlcarey Offline
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Sounds good to me.
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#1365002 - 03/26/10 07:08 PM Re: New model privacy form adopted wanted
Ted Dreyer Offline
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wanted: The thing that you need to be concerned about is to make sure that your new notice is not a "revision" to your privacy policy under section .8 of the privacy regulations. A revised policy may trigger a need to redisclose.

For example, if you are disclosing a new category of information, or disclosing to new third parties, or if you add a new opt-out right (such as affiliate marketing) you may have a revised policy.

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#1365880 - 03/29/10 10:26 PM Re: New model privacy form adopted Mary Beth Guard
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So in a state like Caifornia where the privacy notice has to have a specific title like "IMPORTANT PRIVACY CHOICES FOR CONSUMERS," how are we supposed to fit this customized stuff onto the new form? It says that state stuff goes on page 2 at the very end, but it seems odd to put the title of the form at the very end. Also, for states with opt in requirements (rather than opt out), can the form be customized to meet those requirements and still get the safe harbor? It basically says you can't customize the form, which makes it hard to comply with specific state laws. What are people in CA, Vermont, etc. planning on doing? I wold like to know how to complay with this and state laws.

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#1370465 - 04/07/10 03:38 PM Re: New model privacy form adopted Working From Home
CompDat Offline
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OK, there is one part about the safe harbor I am confused about but want to clarify and see if anyone can assist with.

On 1/2011 we will begin providing new privacy disclosures at account opening. In April (our annual mailing period) of 2011 we will provide the annual mailing using the new form. IMO we get safe harbor for this as well. The April 2010 mailing can use the old model, but we would get safe harbor with the 2011 mailing. Thus, in my opinion, examiners would be hard pressed to criticise for the 2010 annual mailing. Any thoughts?

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#1370514 - 04/07/10 04:12 PM Re: New model privacy form adopted CompDat
ktac MITCH Offline
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ktac MITCH
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Giant side of TX
Originally Posted By: CompDat
OK, there is one part about the safe harbor I am confused about but want to clarify and see if anyone can assist with.

On 1/2011 we will begin providing new privacy disclosures at account opening. In April (our annual mailing period) of 2011 we will provide the annual mailing using the new form. IMO we get safe harbor for this as well. The April 2010 mailing can use the old model, but we would get safe harbor with the 2011 mailing. Thus, in my opinion, examiners would be hard pressed to criticise for the 2010 annual mailing. Any thoughts?


Let me say - - I Agree - - and expand this a little.
Of course there are forms providers who are trying to sell the new model form & pushing the fact that if you don't use the new Model Form in 2010 you don't have Safe Harbor.
BUT - we have never had safe harbor before & we just had to make sure our notices were in compliance. CORRECT?
So there is no big eal with no safe harbor of using the old form in 2010 because we have never had safe harbor until now = The Model Form?
Any Agreement or Disagreement ???
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#1370577 - 04/07/10 04:50 PM Re: New model privacy form adopted ktac MITCH
Georgia Plum
Unregistered

Agree. However, if I am a DON'T SHARE ANYTHING WITH ANYONE except our core systems, why do I have to go to a 2/3 page document just to say this?? Why can't I just say this and still be in compliance?

I'm beginning to believe that the forms providers, ink printers, US Postal Service and paper producers are lobbying Congress to come up with all this stuff just so they can make money and congressional leaders can get campaign contributions.

I think it's about time the Community Banks start lobbying for some relief. We are always trying to do the right thing for our customers and we keep getting sucked into this vertex of regulational burden.

Rant over.

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#1370583 - 04/07/10 04:54 PM Re: New model privacy form adopted ktac MITCH
Ted Dreyer Offline
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ktac: Actually the old sample clauses did have a safe harbor, although the regulations didn't use that term for it.

In section .2 of the privacy regulations it says "Compliance with an example or use of a sample clause, to the extent applicable, constitutes compliance with this part."

The guidance to the new Model form refers to that as a "safe harbor" in connection with the old Sample clauses when it says:

"Financial institutions will not be able to rely on the safe harbor by using the Sample Clauses in notices delivered or posted on or after January 1, 2011. Privacy notices using the Sample Clauses that are delivered to consumers (either in paper form or by electronic delivery such as email) or, alternatively, are posted electronically to meet the annual notice requirement of section __.9(c) during the transition period, will have a safe harbor for one year after delivery or posting. Privacy notices using the Sample Clauses that are delivered or posted electronically after the transition period will not be eligible for a safe harbor. Since institutions are required to send notices annually to their customers, they may continue to rely on the safe harbor for annual notices that are delivered to consumers (either in paper form or by electronic delivery such as email) within the transition period until the next annual privacy notice is due one year later."

That quote clearly indicates that annual notices (old or new) delivered in 2010 do have a safe harbor for one year. The one pitfall to avoid is what I mentioned earlier in this thread - a change to your policies or practices that would constitute a revision. Footnote 196 to the new Model form regulations says "Adoption of the model form, with no change in policies or practices, would not constitute a revised notice, although institutions may elect to consider the format change as a revision, at their option. However, inserting the new affiliate marketing opt-out in the model form would be a revision of the institutionís policies and practices."

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#1370590 - 04/07/10 05:00 PM Re: New model privacy form adopted Ted Dreyer
ktac MITCH Offline
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Giant side of TX
Thanks Ted
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#1370653 - 04/07/10 05:57 PM Re: New model privacy form adopted
RR Joker Offline
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The Swamp
Originally Posted By: Georgia Plum
Agree. However, if I am a DON'T SHARE ANYTHING WITH ANYONE except our core systems, why do I have to go to a 2/3 page document just to say this?? Why can't I just say this and still be in compliance?

I'm beginning to believe that the forms providers, ink printers, US Postal Service and paper producers are lobbying Congress to come up with all this stuff just so they can make money and congressional leaders can get campaign contributions.

I think it's about time the Community Banks start lobbying for some relief. We are always trying to do the right thing for our customers and we keep getting sucked into this vertex of regulational burden.

Rant over.


Georgia Plum, I spoke with our laison at the FRB about 2 weeks ago and he stated that if you are a "do not share" he recommended NOT going to the long form.

ps..I haven't read this entire thread, so I don't know exactly what this is referring to (like..."like it or not you have no choice"...because you DO have a choice...it's in the final rule.

As far as Safe Harbor...if you don't share...what do you need protection from?!?
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#1370711 - 04/07/10 06:35 PM Re: New model privacy form adopted RR Joker
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RRjoker: The main advantage of the safe harbor is that it limits examiner discretion. If you have properly used the Model form then you are in compliance with not only the GLB notice requirements, but also the FCRA and Affiliate Marketing requirements.

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