Learn More - Click Here!

New Reply Thread Options
#612667 - 09/13/06 02:38 PM Privacy notices and adverse action notices
lakesider Offline
Member
Joined: Mar 2001
Posts: 73
bixby, OK
My bank was bought by another bank and in reviewing adverse action notices I was told we must send privacy notices with all consumer adverse action notices. I do not believe this is required by the regulation. If the applicant is not a customer the notice is not required and if the applicant is a customer, the notice was provided at account opening. Can someone point me to a section of the regulation that addresses adverse actions?

Return to Top Reply Quote Quick Reply Quick Quote
#612668 - 09/13/06 06:55 PM Re: Privacy notices and adverse action notices
Bear Collector, CRCM Offline
Diamond Poster
Bear Collector, CRCM
Joined: Nov 2000
Posts: 1,830
District of Columbia
There is no requirement to send a Privacy Notice with an AAN that I am aware of. If you share non public personal information outside of the Reg P exceptions, then you would need to ensure that all consumers receive a privacy notice, even if an ongoing relationship is not established- e.g., you decline the loan. It could be that a for a consumer who has no other relationship with the bank and who may have applied for a loan online or through your call center, sending the notice with the AAN is the best way to get it to him/her. However, if you do not share outside of the exceptions, then a privacy notice would not be required if no customer relationship is established.
BC
_________________________
Being kind is more important than being important.

Return to Top Reply Quote Quick Reply Quick Quote
#612669 - 09/13/06 07:25 PM Re: Privacy notices and adverse action notices
Ted Dreyer Offline
Diamond Poster
Ted Dreyer
Joined: Apr 2001
Posts: 2,245
If the applicant is not a customer a privacy notice is not required as long as you aren't sharing information about these rejected applicants. See section .4(b) of the privacy regulations.

Return to Top Reply Quote Quick Reply Quick Quote
Quick Reply:
HTML is disabled
UBBCode is enabled




Moderator:  MagicCity, P*Q, Truffle Royale