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#1402639 - 06/11/10 05:55 PM Privacy---big oops
Anonymous
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During loan audit it was recently discovered that we have not been providing our Privacy notice. Instead, we have been providing a disclosure that is generated from the system we use for our loan docs. Unfortunately, that form has on opt-out option, which we do NOT offer because we do not share information. Our originators have been completing the opt-out for the borrower and then having them sign it.

Is there any guidance anywhere on how we should remedy this issue?

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#1402676 - 06/11/10 06:13 PM Re: Privacy---big oops Anonymous
Doug Hendrickson Offline
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Doug Hendrickson
Joined: Oct 2009
Posts: 3,927
I would speak to your vendor about how to customize the form to your policy. It sounds like it isn't as bad as it could be in that you don't share information, so there should be nothing to either opt-in to or opt-out of. We also do not share at all, so our current policy and the revised policy to adhere to the new format does not offer any opt-out.
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I hear and I forget. I see and I remember. I do and I understand.--Confucius

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#1402708 - 06/11/10 06:27 PM Re: Privacy---big oops Doug Hendrickson
Anonymous
Unregistered

Well, we had our own notices uploaded- they just were never switched to be "on". Thanks for the info.

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#1402844 - 06/11/10 07:51 PM Re: Privacy---big oops Anonymous
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,862
Cape Cod
Quote:
Our originators have been completing the opt-out for the borrower and then having them sign it.

I'd be careful not to let that sort of thinking spread to other areas. For example, it would be a violation for a bank rep to check off an opt-in box for overdraft service for ATM and one-time debit card transactions before having a customer sign.
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#1402897 - 06/11/10 08:31 PM Re: Privacy---big oops John Burnett
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,292
I have found this kind of error at banks in audits and found that the vendor form opted the customer out of all sorts of things (do not call, do not mail, sharing, etc.) It is important to have these systems reviewed so you know what customers are seeing! Compliance should know what every product's privacy notice says and how and when it is distributed. And test it!
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Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
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#1414896 - 07/14/10 05:19 PM Re: Privacy---big oops Kathleen O. Blanchard
Georgia Golfer Offline
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Georgia Golfer
Joined: Jun 2003
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1st Tee
I just found out that sort of the same thing was going on here, evidently, there has been NO privacy notices given to consumers for a while...

The vast majority of loan customers are existing DDA customers & would have received the initial notice with their DDA as well as the annual notice that is sent out to all relationships every December.

Do we need to send initial notices to all loan customers that did not get the notice when the loan was closed, or do we fix the system and move on, or send notices to just those individuals that do not have existing relationships with us & would not have gotten an initial or annual to date?

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