Loan Prospecting, Privacy, and Client Protection

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Question:

How can I better protect my bank clients? As an inbound call center we receive calls from prospective borrowers. The prospects are responding to directmail inviting them to apply for a loan. Prior to the telephone call all prospect information is from a public source. During the call the prospective borrower is asked to complete a loan application. The application is designed to prequalify the borrower. Our duties cease when we transfer that information to our client, the bank. All other communication and correspondence is handled by the bank or by other partners. 1. Do we meet the definition as an "outside service?" 2. Should we modify our current confidentiality agreements with employees to stress or include specific language? 3. Once the data is captured, is it by definition "nonpublic" information?

Answer:

Yes. You are a service provider to your bank customer. You should have a written agreement with the bank that spells out your privacy obligations. You should also have confidentiality agreements with your employees in which they acknowledge that they understand that all personal financial information that they may see cannot be used by them for any purpose other than fulfilling your responsibilities to your customers. You should also be continually training your employees on their privacy responsibilities. You should assume that any personal information you capture that relates to an individual is "nonpublic" information for purposes of your privacy obligations.

First published on BankersOnline.com 3/4/02