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#2054303 - 12/15/15 08:22 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Sunshine Lady Offline
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No, you are not required to provide the notice of availability of privacy on a statement.Since the privacy notice does not be delivered annually, this method of delivery goes away.

I would leave it on my webpage so that customers can find it, but you do not have to remind them each year.
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#2054546 - 12/16/15 08:54 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Elwood P. Dowd
SusieSpongehead Offline
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Posts: 11
Colorado
Originally Posted By Ken_Pegasus
Quote:
I spoke to our EIC at the FRB Denver Branch regarding this. After consulting a few colleagues he suggested that we wait to see if the CFPB issues something.


That's disappointing. The issue might not be addressed in "examiner school," but it is addressed in high school and college courses on the U.S. legislative system. A regulation can interpret a statute passed by Congress, but it cannot change it.

When Congress passed the Expedited Funds Availability Act it indicated that "local" or "nonlocal" was determined by the two banks' geographic locations. When the FRB issued the first version of Reg CC it "corrected" the statute to say that "local" vs. "nonlocal" could be determined by referencing the transit and routing numbers on the checks. The NCUA immediately sued to represent the interests of credit unions that used "payable through" banks. They got the ruling they asked for in short order; i.e. the FRB wasn't empowered to change Congressional intent even if it was to improve its logic.

If the regulation and the statute it is supposed to interpret conflict, the language in the statute controls.


Just a follow-up...

I got a call from our EIC today. He discussed my question with additional co-workers who are more familiar with the legal aspect of these types of changes to statutes and they feel that the change became effective when the act was signed into law. Therefore we may take advantage of the change to GLBA instead of waiting for the CFPB to amend Regulation P.

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#2055001 - 12/18/15 06:11 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
mtngrrl Offline
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ABA put out a staff analysis this morning basically stating that banks who do not send a privacy notice may technically violate the regulation, it's "difficult to imagine" an examiner citing the bank when the reg conflicts with the statue.
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#2055288 - 12/22/15 03:11 PM Re: New Bill Passed - Annual Privacy Notice Eliminated DeeGail
Elwood P. Dowd Offline
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Although there was no opposition to it, legislation that would have eliminated the annual mailing failed in the preceding session of Congress. So, CFPB "reinterpreted" the regulation to add the provision that allowed a bank to eliminate the annual mailing if it let consumer customers know the "privacy" disclosure was available on demand; e.g. on the bank's web site.

In the next session, Congress did pass a statutory amendment that eliminated the annual mailing for most banks. So, CFPB's amendment is now surplusage.

If the statute no longer requires your bank to do an annual mailing, then any steps you take to make your consumer customers aware that the policy is available to them on your web site or elsewhere are gratuitous. You can do it. You can not do it.
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#2055293 - 12/22/15 03:33 PM Re: New Bill Passed - Annual Privacy Notice Eliminated mtngrrl
Elwood P. Dowd Offline
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Quote:
it's "difficult to imagine" an examiner citing the bank when the reg conflicts with the statue.


I would know that I was holding an examiner's career in my hands if he or she suggested that my bank was violating a regulation that had been Congressionally emasculated.
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#2055320 - 12/22/15 04:54 PM Re: New Bill Passed - Annual Privacy Notice Eliminated DeeGail
Compliance Action Subscriber 1054 Offline
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Good question- this is not addressed in the FAST Act but I am thinking this isn't required.

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#2066524 - 02/29/16 03:41 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Banker57 Offline
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Minnesota
We do not share nonpublic information. However we have changed our Privacy Policy (not the model Privacy Notice) to address forms of social media, cookies,click stream auditing, etc. Both the model Privacy Notice and the Privacy Policy are available on our website. Are we still exempt form sending the annual privacy mailing?

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#2066528 - 02/29/16 03:51 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Banker57
Elwood P. Dowd Offline
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Probably not, but the question should be put to the person who suggested it was a good idea to include gratuitous, unrelated information in a legally required disclosure. The natural assumption would be that he or she thought that through before making the suggestion...
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#2068667 - 03/11/16 04:57 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Ted Dreyer
jmt1714 Offline
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I think "waiting for the regulators to catch up to the law" might qualify as a legitimate business reason, except that would take more than 12 months, likely.

laugh

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#2078697 - 05/13/16 08:04 PM Re: New Bill Passed - Annual Privacy Notice Eliminated SusieSpongehead
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Our shop is of the opinion that the law does override the Regulation but our regulator, the OCC, has indicated that although the FAST Act eliminated the annual notice requirement, the Regulation has not been amended yet by the CFPB and any compliance testing done during an OCC examination would be in accord with the Regulation. This opinion from the OCC in conjunction with the OCC PPM 5000-7 (REV) of February 26, 2016 which confirms the OCC's ability to assess civil monetary penalties for violations of any regulation has us a little shy about not following the annual notice requirements in the Regulation. What are other OCC regulated shops doing with your annual privacy notice this year? Any additional comments on this topic would be appreciated.

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#2078708 - 05/13/16 08:40 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Banker 1025
Elwood P. Dowd Offline
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Either contact your lawyer or the OCC's. Theirs cannot send you a bill.

If you want a guaranteed response, copy your Congressman.
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#2078860 - 05/16/16 07:20 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
David Dickinson Offline
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So their regulation is no longer supported by law. In fact, the law has changed to make their regulation in contradiction to the law, but they still expect you to comply with the regulation. Hmmm. Something sounds very odd. I'm with Ken. I'd also ask them if they skipped out on the common sense training we all received in elementary school.
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#2078898 - 05/16/16 08:57 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
MScarn6942 Offline
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Land Lacking in Lakes, IL
I just got this back from our examiners (FDIC):

"Good catch. The FAST Act (12/5/15) amends section 503 of the GLBA, “Disclosure of institution privacy policy,” by adding an exception to the annual privacy notice requirement. According to the exception, a financial institution that:

• provides nonpublic personal information only in accordance with section 502(b)(2) or (e) or section 504(b); and
• has not changed its policies and practices with regard to disclosing nonpublic personal information from the policies and practices that were disclosed in the most recent disclosure sent to the customer in accordance with section 502,
• is not required to provide an annual privacy notice to its customers until such time as the institution fails to comply with either of the criteria."

Sounds to me like we just saved a bunch of time and money! I can hardly believe a law was passed that didn't create more work for bankers smile.
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#2078939 - 05/17/16 02:40 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
RockChucker, CAMS Offline
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The Country
"I can hardly believe a law was passed that didn't create more work for bankers smile."

Even a blind squirrel finds a nut every once in awhile.
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#2079428 - 05/19/16 07:08 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Banker 1025 Offline
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Thanks to all for your thoughts on this subject. It would be nice if the OCC would have provided the same answer that the FDIC gave in response to the question. The one thing that is consistent about compliance is that it rarely involves the application of common sense. Now it appears as though the basic application of the legal system is being ignored as well. Perhaps we will opt to seek the opinion of counsel which will surely be more economical than mailing all of those disclosures.

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#2081392 - 06/01/16 08:25 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
Compliance Lover Offline
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I'm confused. Are we saying we can assume we don't have to send it anymore? What about the statement notice stating it can be found on our website? Is that no longer necessary either?

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#2081407 - 06/01/16 08:52 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Compliance Lover
Doug Hendrickson Offline
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It is no longer necessary.
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#2082676 - 06/09/16 04:27 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
complygirl Offline
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midwest
Has this been published in the federal register somewhere or where is the official law that eliminated this requirement? We are scheduled to send out annual privacy notices this month and management wants to be certain we no longer have to provide this notice. We contacted our local regulatory agency field office to discuss this change and they knew nothing about this change, which makes management just a bit nervous about not providing the annual notice.

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#2082680 - 06/09/16 04:37 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
rlcarey Offline
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Galveston, TX
The wording in the law and the law itself is linked earlier in this post.

Regulations have yet to be issued.
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#2082811 - 06/10/16 01:10 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
rlcarey Offline
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Galveston, TX
The FRB agrees based on new examination procedures released today:

As of December 4, 2015, section 75001 of the Fixing America’s Surface Transportation Act8 (“FAST Act”) amended section 503 of GLBA to establish an exception to the annual privacy notice requirements whereby a financial institution that meets certain criteria is not required to provide an annual privacy notice to customers. The amendment was effective upon enactment.

There are fewer requirements to qualify for the exception to providing an annual privacy notice pursuant to the FAST Act GLBA amendments than there are to qualify to use the CFPB’s alternative delivery method; any institution that meets the requirements for using the alternative delivery method is effectively excepted from delivering an annual privacy notice.

https://www.federalreserve.gov/bankinfor...27-16_CLEAN.pdf
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#2082909 - 06/10/16 03:33 PM Re: New Bill Passed - Annual Privacy Notice Eliminated rlcarey
Elwood P. Dowd Offline
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I owe you a beer! grin

I'm bloody tired of plowing the same field over and over again.
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#2082991 - 06/10/16 06:58 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
John Burnett Offline
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Cape Cod
It also helps that those are interagency exam procedures.
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#2083385 - 06/14/16 07:12 PM Re: New Bill Passed - Annual Privacy Notice Eliminated peony
STERN Offline
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OCC bank and we are not sending out notices.

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#2093191 - 08/15/16 02:53 PM Re: New Bill Passed - Annual Privacy Notice Eliminated STERN
Elwood P. Dowd Offline
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The CFPB proposed an amendment to Regulation P that would bring it into line with the statute and, apparently, do a little housekeeping. It's 40 pages and, as I regard the regulation as worthless anyway, I'm going to wait until 1) they make it into a movie or 2) it's final before spending any time with it.
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#2094297 - 08/19/16 05:04 PM Re: New Bill Passed - Annual Privacy Notice Eliminated Elwood P. Dowd
fmissle Offline
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Pac NW
Originally Posted By Ken_Pegasus
The CFPB proposed an amendment to Regulation P that would bring it into line with the statute and, apparently, do a little housekeeping. It's 40 pages and, as I regard the regulation as worthless anyway, I'm going to wait until 1) they make it into a movie or 2) it's final before spending any time with it.


Worst. Movie. Ever.

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