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#1982937 - 12/12/14 11:26 PM New privacy rules and CA
Marnie Offline
Gold Star
Joined: Nov 2007
Posts: 437
Nevada
The following was sent by a vendor in an email:

In late October the CFPB issued a final rule that will allow some institutions to avoid the expense of mailing annual privacy disclosures. Under the new rule, effective October 28, 2014, institutions that meet the requirements of the CFPB’s “alternative delivery method” will no longer have to mail their privacy disclosures every year as long as they:
• Are not required to provide an opt-out;
• Have not changed their privacy notice since the last time it was given;
• Do not use the privacy notice as the only way to comply with Affiliate Marketing requirements, if applicable;
• Use the Model privacy notice; and
Do not reside in the states of Vermont or California as these states have their own Privacy regulations and have yet to comment on if the CFPB's Alternative Delivery method can be used.


Is that last statement accurate and if so, how do I go about finding out if CA law is going to accept the new alternative method for annual disclosures for those who do not share? I have customers in several states, along with CA. Otherwise, I am stuck with the traditional privacy mailing instead of the new method of notice on statements and putting the disclosure on my website.

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#1983043 - 12/15/14 04:17 PM Re: New privacy rules and CA Marnie
Ted Dreyer Offline
Diamond Poster
Ted Dreyer
Joined: Apr 2001
Posts: 2,245
The final rule that was issued on the alternative delivery method contained the following comment on page 64060:

"Two commenters discussed the proposed rule’s relation to and potential conflicts with the law of certain states. During the preparation of this final rule, the Bureau consulted with the two states that were identified as having laws that might preclude use of the alternative delivery method and explained the nature and benefits of the change being made to Regulation P. The two states are reviewing their laws and considering how to proceed."

Although this comment does not identify the states, California and Vermont are the two being referred to. As far as I know, neither has yet responded with any guidance on whether the alternative delivery method can be used in their state.

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#1983918 - 12/17/14 10:49 PM Re: New privacy rules and CA Marnie
Dolly Nugent Offline
Diamond Poster
Dolly Nugent
Joined: Nov 2000
Posts: 1,820
Southern California
Glad I ran across this. I'm in CA and was just working on this project. Marnie, thanks for posting and Ted thanks for the response.
_________________________
Dolly Nugent
CRCM
Opinions expressed are my own.

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#1983932 - 12/18/14 01:42 AM Re: New privacy rules and CA Marnie
Dolly Nugent Offline
Diamond Poster
Dolly Nugent
Joined: Nov 2000
Posts: 1,820
Southern California
I checked with our legal firm and the DBO has no authority over how institutions give the notices required by Regualtion P. The DBO only has authority over the opt-notice required by state law. CA opt-out notices are required to be in writing or via E-Sign.
_________________________
Dolly Nugent
CRCM
Opinions expressed are my own.

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