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#67278 - 03/13/03 04:13 PM Privacy & payoffs
Anonymous
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If our local bank calls for a payoff, they have the account number and SS# and we recognize who is calling, can we give them this information or should we ask for written permission from customer in all cases?

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General Discussion
#67279 - 03/13/03 04:25 PM Re: Privacy & payoffs
RGS Offline
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RGS
Joined: Jul 2002
Posts: 689
Home of the 8 time NCAA Champ ...
We prefer to have written permission from our customers, but I would think that your internal policies would be the ultimate factor in deciding what you require.
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Kentucky basketball isn't a matter of life and death, it's much more important than that.

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#67280 - 03/13/03 05:34 PM Re: Privacy & payoffs
Sponge Steve Offline
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Sponge Steve
Joined: Jun 2002
Posts: 299
Midwest
That's a tough one. Your own lenders probably call the other banks asking for the same. If you require written authorization to release, your lenders should expect the same treatment. Can you live with that?

One would assume the customer has given the implied permission to release the info by seeking refinancing elsewhere. So I can't imagine any backlash for providing what the customer has authorized you to do by their action. On the other hand, we once had a bank call for a mortgage payoff amount and other file information under the guise they were going to do the refinance. Turns out the other bank was just on a fishing trip looking for information for their sales pitch to our customer. So that deceptive bank went on the "Only In Writing" list in a hurry.
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Sponge Steve, CRCM, CBA Opinions expressed are mine and not my employer's

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#67281 - 03/13/03 05:40 PM Re: Privacy & payoffs
Anonymous
Unregistered

Is there anything under GLBA (Privacy) that would prohibit giving out this information

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#67282 - 03/13/03 07:35 PM Re: Privacy & payoffs
Princess Romeo Offline

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Princess Romeo
Joined: Jun 2001
Posts: 8,272
Where the heart is
GLBA allows the sharing of information to service an account, or to complete a transaction initiated by the consumer.

I think the problem that people get hung up on is the potential that the call is fraudulent and being perpetrated by a fraudster trying to commit some type of identity theft. If you can take reasonable precautions against this, then I don't see any issues with GLBA.

I truly, truly fear that between "privacy" and "suspicious activity", banks are going to become paralyzed by fear from doing anything!
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#67283 - 03/13/03 08:11 PM Re: Privacy & payoffs
RGS Offline
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RGS
Joined: Jul 2002
Posts: 689
Home of the 8 time NCAA Champ ...
One concern we've always had with pay-offs is fraud. If you were looking at a "distressed" sale, a potential buyer who knows the seller's pay-off amount has an unfair advantage. There are many cautionary tales (some may be urban legends) that float around about this information being leaked that scares many bankers.
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Kentucky basketball isn't a matter of life and death, it's much more important than that.

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#67284 - 03/13/03 08:15 PM Re: Privacy & payoffs
Sponge Steve Offline
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Sponge Steve
Joined: Jun 2002
Posts: 299
Midwest
I agree with you Bonnie. Banks are going to end up like the deer in the headlights --- frozen and unable to make a decision for fear of violating something.

We're expected to protect privacy like we protect cash yet are expected to be suspicious and squeal over the dumbest things. Hurry up but slow down?

If in the case above the bank did tell the other bank nothing would be released without the customer's written permission that customer would likely come to the bank screaming about how difficult that bank is to work with which is why she's going to the other bank.

We can't win for trying.
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Sponge Steve, CRCM, CBA Opinions expressed are mine and not my employer's

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