Hi,
We plan to share customers' information with our affiliated insurance company (for marketing purpose).
We will only share customers' "contact information" and their "product mix" (like what products they have with the Bank such as DDA, a mortgage or a car loan......). No other (credit) information will be shared.

I know we will have to re-disclose our privacy notice. My question is do we have to give customers option to opt out?

Any feedback/comment is appreciated!
Thank you very much!

https://consumercomplianceoutlook.org/2008/fourth-quarter/q4_03/

Opting Out
The consumer must be given a reasonable and simple method for opting out and may opt out at any time. The opt-out period must be at least five years, but it can be longer. The consumer may revoke the opt-out in writing or electronically.

Thank you, Dan! Could you please help me to clarify this: when I look at section 624, it says "but for clauses (i), (ii), and (iii) of section 603(d)(2)(A)", I thought if we only share customer contact information is excluded since the information is to transaction only.

Maybe I looked at the wrong citation. What do I miss? Appreciate your help!

(a) Special Rule for Solicitation for Purposes of Marketing
(1) Notice. Any person that receives from another person related to it by common ownership or affiliated by corporate control a communication of
information that would be a consumer report, but for clauses (i), (ii), and (iii) of section 603(d)(2)(A), may not use the information to make a solicitation for marketing purposes to a consumer about its products or services, unless--

(A) it is clearly and conspicuously disclosed to the consumer that the information may be communicated among such persons for
purposes of making such solicitations to the consumer; and
(B) the consumer is provided an opportunity and a simple method to prohibit the making of such solicitations to the consumer by such
person.

From 603(d)(2)(A)

(iii) communication of other information among persons
related by common ownership or affiliated by corporate
control, if it is clearly and conspicuously disclosed to
the consumer that the information may be communicated
among such persons and the consumer is given the opportunity,
before the time that the information is initially
communicated, to direct that such information not be communicated
among such persons;

We don't do any information sharing at all other than to vendors for services they provide. Unless I've missed something in my quick review if you intend to share your customers information for marketing purposes they must be given the right to opt out of you sharing their information.

If I'm mistaken then hopefully someone will correct me.

Dan, Thank you for the fast response!!

I am still confused: Why we can't use the 1st "exclusion" sec. 603. (d)(2)(i) report containing information solely as to transactions or experiences between the consumer and the person making the report;......

We only share contact information and product mix with affiliated for marketing purpose. To me, "contact info" and "product mix" is solely as to transactions or experiences. Do I interpret the rule incorrectly?

Any feedback is appreciated!! thank you !!!

Based on everything I'm finding the consumer must be given the chance to opt out.


https://www.fdic.gov/regulations/compliance/manual/8/viii-6.1.pdf

Section 624 Affiliate Marketing Opt Out
Section 624 gives a consumer the right to restrict an entity, with which it does not have a pre-existing business relationship, from using certain information obtained from an affiliate to make solicitations to that consumer. This provision is distinct from Section 603(d)(2)(A)(iii) which gives consumer the right to restrict the sharing of certain consumer information amongst affiliates.3

Under Section 624, an entity may not use information received from an affiliate to market its products or services to a consumer, unless the consumer is given notice and a reasonable opportunity and a reasonable and simple method to opt out of the making of such solicitations. The affiliate marketing opt-out applies to both transaction or experience information and “other” information, such as information from credit reports and credit applications. On November 7, 2007, the federal financial institution regulators published final regulations in the Federal Register to implement this section (72 FR 62910).4

MJZMJZ

You might want to re-read 603(d)(2)

(2) Exclusions. Except as provided in paragraph (3), the term "consumer report" does not include

(A) subject to section 624,

And 624(a)(1)

would be a consumer report, but for clauses (i), (ii), and (iii) of section 603(d)(2)(A),

Thank you, Dan and rlcarey!
I re-read it. I got it now!
Appreciate your time!

Hi rlcarey, Dan,

Just want to confirm that: if we only share commercial customer's info (we will not share owner or guarantors info), non of the rules (Reg P and FCRA) applies right? So we can share commercial contact info and product ?

Many many thanks again for your insight!

Information on entities is not protected - it comes down to a business decision. But as a business owner, I would not be too pleased.

Revitalizing this thread. I understand the opt-out provisions still apply (need to provide notice and ability to say no) for the bank sharing just names and addresses with its affiliate insurance company - NO credit history, experience, transactions, etc. sharing - so the insurance company can market insurance products - for example, bank, give me a list of new mortgage loan customer names and addresses.

What about sharing in the other direction? Bank would like a list of names and addresses of insurance company customers with homeowners insurance so bank can market a loan promo. The insurance company is a broker. So, while a customer of our insurance company, the consumer becomes the long-term customer of the end insurance company like State Farm or American Family, which does provide the regular privacy / affiliate disclosure for their own sharing. Once the consumer is on board with the actual insurance company, are they now former customers of our insurance company? In this situation, would our insurance company need to have a privacy policy that discloses it shares names and addresses with affiliates (the bank) and that the consumer can opt-out using the info provided?

I have read through Section 624, the Consumer Compliance Outlook article from 2008, exam procedures, FCRA. There is a perfect example of bank sharing with its insurance company, but I cannot find anything about the insurance company affiliate sharing names and addresses with the bank for marketing purposes.

You need to engage your legal counsel to pour over their broker agreements that they have with the various insurance companies they do business with. I doubt that it would be allowed.

Thanks Randy. I was afraid it wasn't a simple answer. I appreciate your quick response.