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#1502598 - 01/31/11 03:39 PM "Affiliate" Sharing
Connie Ollis Offline
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Connie Ollis
Joined: Nov 2001
Posts: 83
Western NC, US
I need help in determining if there is a distinction between "affiliates" and "subsidiaries" within FCRA/FACT Act and the related sections in the Privacy regs. We have an investment company that is owned by the bank. The bank is owned by a bank holding company. We want to be able to share information with our investment company but are unclear if this would be allowed under the affiliated sharing rules or if it would require notification and the "opt out" option.

Since the investment company is owned by the bank, can we share without having to disclose on our privacy disclosure and require opt-outs to satisfy privacy and FCRA/FACT?

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#1528894 - 03/30/11 04:50 PM Re: "Affiliate" Sharing Connie Ollis
Carolyn31 Offline
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Joined: Nov 2005
Posts: 101
Nebraska
Did you get an answer to your question? I have the same question myself. Our investment company will be under the bank holding company that is a financial holding company. Can we share information about our customers to the investment company without having to offer the opt-out?

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#1529037 - 03/30/11 07:51 PM Re: "Affiliate" Sharing Carolyn31
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
From dictionary.com for affiliate.

–noun
7. a branch organization.
8.
Commerce .
a. a business concern owned or controlled in whole or in part by another concern.
b. a subsidiary.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1529226 - 03/31/11 12:40 AM Re: "Affiliate" Sharing Dan Persfull
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
How about from the regulation?

Sec. 222.3 Definitions

For purposes of this part, unless explicitly stated otherwise:

(b) Affiliate means any company that is related by common ownership or common corporate control with another company.


You can share transaction information with your affiliates without an opt-out. You cannot share other information and your affiliates cannot market to your customers using information that you provided them without giving them an opt-out.

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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1596186 - 08/25/11 12:47 AM Re: "Affiliate" Sharing rlcarey
OnTheEdge Offline
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Joined: Apr 2002
Posts: 1,677
SmallTown, USA
Randy,
Our privacy disclosure states that(1) we share info for joint marketing with other financial companies. It also states that (2) we do not share info with affiliates for them to market to our customers. (our only affiliate is an insurance company).

If we change to indicate we do share with affiliates, could we use the joint marketing exception to avoid the opt-out requirement?
_________________________
The opinions expressed are mine and do not necessarily reflect those of my employer.

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#1596200 - 08/25/11 03:12 AM Re: "Affiliate" Sharing OnTheEdge
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
If we change to indicate we do share with affiliates, could we use the joint marketing exception to avoid the opt-out requirement?

No. The disclosure regarding joint marketing is Regulation P, the disclosure and opt-out for affiliates is the FCRA.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1596383 - 08/25/11 02:39 PM Re: "Affiliate" Sharing rlcarey
OnTheEdge Offline
Diamond Poster
Joined: Apr 2002
Posts: 1,677
SmallTown, USA
Of course! I knew that would be too simple. Thanks again for your insight.
_________________________
The opinions expressed are mine and do not necessarily reflect those of my employer.

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