Typically there are no privacy concerns if these are business transactions. However, this sounds like a convoluted transaction and as such, sit down with your legal counsel prior to taking any action.
Privacy Concern-Sharing Info w/"Business Partner"
We have an account holder with a variety of small business loans. He "paid" his business partner, who is not on any of the loans, with a piece of property in which we hold the lien. The business partner has recently asked that we sell him all outstanding notes. Do we face a privacy concern by letting the partner know loan balances, etc. or are we covered by mortgage servicing rules? I believe that we can just send the mortgagee a notice that his servicer will change and accept the note payoff from his partner. My CEO seems to think there might be a privacy concern. I appreciate your thoughts!
First published on 10/28/2018