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Fair Credit Reporting Act
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Subpart A—General Provisions
334.1
Purpose and scope
334.2
Examples.
334.3
Definitions
Subpart B—[Reserved]
Subpart C—Affiliate Marketing
334.20
Coverage and definitions.
334.21
Affiliate marketing opt-out and exceptions.
334.22
Scope and duration of opt-out.
334.23
Contents of opt-out notice; consolidated and
equivalent notices.
334.24
Reasonable opportunity to opt out.
334.25
Reasonable and simple methods of opting out.
334.26
Delivery of opt-out notices.
334.27
Renewal of opt-out.
334.28
Effective date, compliance date, and prospective
application.
Subpart D—Medical Information
334.30
Obtaining or using medical information in connection
with a determination of eligibility for credit.
334.31
Limits on redisclosure of information.
334.32
Sharing medical information with affiliates.
Subpart E–H—[Reserved]
Subpart I—Duties of Users of Consumer Reports
Regarding Identify Thefts
334.80—334.81
[Reserved]
334.82
Duties of users regarding discrepancies.
334.83
Disposal of consumer information.
Subpart J—Identity Theft Red Flags
334.90
Duties regarding the detection, prevention, and
mitigation of identity theft.
334.91
Duties of card issuers regarding changes of address.
Appendix A–B [Reserved]
Appendix C to Part 334—Model Forms for
Opt-Out Notices.
Appendix D–I [Reserved]
Appendix J to Part 334—Interagency Guide.
AUTHORITY: 12 U.S.C. 1818 1819(Tenth) and 1831p--1;
15 U.S.C. 1681a, 1681b, 1681c, 1681m, 1681s, 1681s--3,
1681t, 1681w, 6801 and 6805, Pub. L. 108--159, 117 Stat.
1952.
SOURCE: The provisions of this Part 334 appear at
69 Fed. Reg. 77618, December 28, 2004, effective
July 1, 2005, and 70 Fed. Reg. 70685, November 22,
2005, effective date of the interim final rule published
on June 10, 2005 (70 FR 33958) is delayed until April 1,
2006, the amendments in this final rule are effective
April 1, 2006 except as otherwise noted.
Subpart A—General Provisions
§ 334.1 Purpose and scope.
(a) Purpose. The purpose of this part is to
implement the Fair Credit Reporting Act. This part
generally applies to persons that obtain and use
information about consumers to determine the consumer's
eligibility for products, services, or employment, share
such information among affiliates, and furnish
information to consumer reporting agencies.
(b) Scope. Except as otherwise provided in
this part, the regulations in this part apply to insured
state nonmember banks, insured state licensed branches
of foreign banks, and subsidiaries of such entities
(except brokers, dealers, persons providing insurance,
investment companies, and investment advisers).
{{12-31-07 p.2410}}
[Codified to 12, C.F.R. § 334.1]
[Section 334.1 added at 72 Fed. Reg. 62963, November
7, 2007, effective January 1, 2008, mandatory compliance
date is October 1, 2008]
§ 334.2 Examples.
The examples in this part are not exclusive.
Compliance with an example, to the extent applicable,
constitutes compliance with this part. Examples in a
paragraph illustrate only the issue described in the
paragraph and do not illustrate any other issue that may
arise in this part.
§ 334.3 Definitions.
For purposes of this part, unless explicitly stated
otherwise:
(a) Act means the Fair Credit Reporting Act
(15 U.S.C. 1681 et seq.).
(b) Affiliate means any company that is
related by common ownership or common corporate control
with another company.
(c) [Reserved]
(d) Company means any corporation, limited
liability company, business trust, general or limited
partnership, association, or similar organization.
(e) Consumer means an individual.
(f) [Reserved]
(g) [Reserved]
(h) [Reserved]
(i) Common ownership or common corporate control
means a relationship between two companies under which:
(1) One company has, with respect to the other
company:
(i) Ownership, control, or power to vote 25
percent or more of the outstanding shares of any class
of voting security of a company, directly or indirectly,
or acting through one or more other persons;
(ii) Control in any manner over the election of a
majority of the directors, trustees, or general partners
(or individuals exercising similar functions) of a
company; or
(iii) The power to exercise, directly or
indirectly, a controlling influence over the management
or policies of a company, as the FDIC determines; or
(2) Any other person has, with respect to both
companies, a relationship described in paragraphs (i)(1)(i)--(i)(1)(iii)
of this section.
(j) [Reserved]
(k) Medical information means:
(1) Information or data, whether oral or recorded,
in any form or medium, created by or derived from a
health care provider or the consumer, that relates to--
(i) The past, present, or future physical,
mental, or behavioral health or condition of an
individual;
(ii) The provision of health care to an
individual; or
(iii) The payment for the provision of health
care to an individual.
(2) The term does not include:
(i) The age or gender of a consumer;
(ii) Demographic information about the consumer,
including a consumer's residence address or e-mail
address;
(iii) Any other information about a consumer that
does not relate to the physical, mental, or behavioral
health or condition of a consumer, including the
existence or value of any insurance policy; or
(iv) Information that does not identify a
specific consumer.
(l) Person means any individual, partnership,
corporation, trust, estate cooperative, association,
government or governmental subdivision or agency, or
other entity.
[Codified to 12 C.F.R. § 334.3]
[Section 334.3 amended at 72 Fed. Reg. 63760,
November 9, 2007, effective January 1, 2008, the
mandatory compliance date is November 1, 2008]
{{12-31-07 p.2411}}
Subpart B—[Reserved]
Subpart C—Affiliate Marketing
§ 334.20 Coverage and definitions.
(a) Coverage. Subpart C of this part applies
to insured state nonmember banks, insured state licensed
branches of foreign banks, and subsidiaries of such
entities (except brokers, dealers, persons providing
insurance, investment companies, and investment
advisers).
(b) Definitions. For purposes of this subpart:
(1) Clear and conspicuous. The term "clear
and conspicuous" means reasonably understandable and
designed to call attention to the nature and
significance of the information presented.
(2) Concise. (i) In general. The
term "concise" means a reasonably brief expression or
statement.
(ii) Combination with other required
disclosures. A notice required by this subpart may
be concise even if it is combined with other disclosures
required or authorized by federal or state law.
(3) Eligibility information. The term
"eligibility information" means any information the
communication of which would be a consumer report if the
exclusions from the definition of "consumer report" in
section 603(d)(2)(A) of the Act did not apply.
Eligibility information does not include aggregate or
blind data that does not contain personal identifiers
such as account numbers, names, or addresses.
(4) Pre-existing business relationship. (i) In
general. The term "pre-existing business relationship"
means a relationship between a person, or a person's
licensed agent, and a consumer based on--
(A) A financial contract between the person and
the consumer which is in force on the date on which the
consumer is sent a solicitation covered by this subpart;
(B) The purchase, rental, or lease by the
consumer of the person's goods or services, or a
financial transaction (including holding an active
account or a policy in force or having another
continuing relationship) between the consumer and the
person, during the 18-month period immediately preceding
the date on which the consumer is sent a solicitation
covered by this subpart; or
(C) An inquiry or application by the consumer
regarding a product or service offered by that person
during the three-month period immediately preceding the
date on which the consumer is sent a solicitation
covered by this subpart.
(ii) Examples of pre-existing business
relationships. (A) If a consumer has a time deposit
account, such as a certificate of deposit, at a
depository institution that is currently in force, the
depository institution has a pre-existing business
relationship with the consumer and can use eligibility
information it receives from its affiliates to make
solicitations to the consumer about its products or
services.
(B) If a consumer obtained a certificate of
deposit from a depository institution, but did not renew
the certificate at maturity, the depository institution
has a pre-existing business relationship with the
consumer and can use eligibility information it receives
from its affiliates to make solicitations to the
consumer about its products or services for 18 months
after the date of maturity of the certificate of
deposit.
(C) If a consumer obtains a mortgage, the
mortgage lender has a pre-existing business relationship
with the consumer. If the mortgage lender sells the
consumer's entire loan to an investor, the mortgage
lender has a pre-existing business relationship with the
consumer and can use eligibility information it receives
from its affiliates to make solicitations to the
consumer about its products or services for 18 months
after the date it sells the loan, and the investor has a
pre-existing business relationship with the consumer
upon purchasing the loan. If, however, the mortgage
lender sells a fractional interest in the consumer's
loan to an investor but also retains an ownership
interest in the loan, the mortgage lender continues to
have a pre-existing business relationship with the
consumer, but the investor does not have a pre-existing
business relationship with the consumer. If the
{{12-31-07 p.2412}}mortgage lender retains
ownership of the loan, but sells ownership of the
servicing rights to the consumer's loan, the mortgage
lender continues to have a pre-existing business
relationship with the consumer. The purchaser of the
servicing rights also has a pre-existing business
relationship with the consumer as of the date it
purchases ownership of the servicing rights, but only if
it collects payments from or otherwise deals directly
with the consumer on a continuing basis.
(D) If a consumer applies to a depository
institution for a product or service that it offers, but
does not obtain a product or service from or enter into
a financial contract or transaction with the
institution, the depository institution has a
pre-existing business relationship with the consumer and
can therefore use eligibility information it receives
from an affiliate to make solicitations to the consumer
about its products or services for three months after
the date of the application.
(E) If a consumer makes a telephone inquiry to
a depository institution about its products or services
and provides contact information to the institution, but
does not obtrain a product or service from or enter into
a financial contract or transaction with the
institution, the depository institution has a
pre-existing business relationship with the consumer and
can therefore use eligibility information it receives
from an affiliate to make solicitations to the consumer
about its products or services for three months after
the date of the inquiry.
(F) If a consumer makes an inquiry to a
depository institution by e-mail about its products or
services, but does not obtain a product or service form
or enter into a financial contract or transaction with
the institution, the depository institution has a
pre-existing business relationship with the consumer and
can therefore use eligibility information it receives
from an affiliate to make solicitations to the consumer
about its products or services for three months after
the date of the inquiry.
(G) If a consumer has an existing relationship
with a depository institution that is part of a group of
affiliated companies, makes a telephone call to the
centralized call center for the group of affiliated
companies to inquire about products or services offered
by the insurance affiliate, and provides contact
information to the call center, the call constitutes an
inquiry to the insurance affiliate that offers those
products or services. The insurance affiliate has a
pre-existing business relationship with the consumer and
can therefore use eligibility information it receives
from its affiliated depository institution to make
solicitations to the consumer about its products or
services for three months after the date of the inquiry.
(iii) Examples where no pre-existing business
relationship is created. (A) If a consumer makes a
telephone call to a centralized call center for a group
of affiliated companies to inquire about the consumer's
existing account at a depository institution, the call
does not constitute an inquiry to any affiliate other
than the depository institution that holds the
consumer's account and does not establish a pre-existing
business relationship between the consumer and any
affiliate of the account-holding depository institution.
(B) If a consumer who has a deposit account
with a depository institution makes a telephone call to
an affiliate of the institution to ask about the
affiliate's retail locations and hours, but does not
make an inquiry about the affiliate's products or
services, the call does not constitute an inquiry and
does not establish a pre-existing business relationship
between the consumer and the affiliate. Also, the
affiliate's capture of the consumer's telephone number
does not constitute an inquiry and does not establish a
pre-existing business relationship between the consumer
and the affiliate.
(C) If a consumer makes a telephone call to a
depository institution in response to an advertisement
that offers a free promotional item to consumers who
call a toll-free number, but the advertisement does not
indicate that the depository institution's products or
services will be marketed to consumers who call in
response, the call does not create a pre-existing
business relationship between the consumer and the
depository institution because the consumer has not made
an inquiry about a product or service offered by the
institution, but has merely responded to an offer for a
free promotional item.
(5) Solicitation. (i) In general.
The term "solicitation" means the marketing of a product
or service initiated by a person to a particular
consumer that is--
{{12-31-07 p.2413}}
(A) Based on eligibility information
communicated to that person by its affiliate as
described in this subpart; and
(B) Intended to encourage the consumer to
purchase or obtain such product or service.
(ii) Exclusion of marketing directed at the
general public. A solicitation does not include
marketing communications that are directed at the
general public. For example, television, general
circulation magazine, and billboard advertisements do
not constitute solicitations, even if those
communications are intended to encourage consumers to
purchase products and services from the person
initiating the communications.
(iii) Examples of solicitations. A
solicitation would include, for example, a telemarketing
call, direct mail, e-mail, or other form of marketing
communication directed to a particular consumer that is
based on eligibility information received from an
affiliate.
(6) You means a person described in
paragraph (a) of this section.
[Codified to 12 C.F.R. § 334.20]
[Section 334.20 added at 72 Fed. Reg. 62965, November
7, 2007, effective January 1, 2008, the mandatory
compliance date is October 1, 2008]
§ 334.21 Affiliate marketing opt-out and exceptions.
(a) Initial notice and opt-out requirement. (1) In
general. You may not use eligibility information
about a consumer that you receive from an affiliate to
make a solicitation for marketing purposes to the
consumer, unless--
(i) It is clearly and conspicuously disclosed to
the consumer in writing or, if the consumer agrees,
electronically, in a concise notice that you may use
eligibility information about that consumer received
from an affiliate to make solicitations for marketing
purposes to the consumer;
(ii) The consumer is provided a reasonable
opportunity and a reasonable and simple method to "opt
out," or prohibit you from using eligibility information
to make solicitations for marketing purposes to the
consumer; and
(iii) The consumer has not opted out.
(2) Example. A consumer has a homeowner's
insurance policy with an insurance company. The
insurance company furnishes eligibility information
about the consumer to its affiliated depository
institution. Based on that eligibility information, the
depository institution wants to make a solicitation to
the consumer about its home equity loan products. The
depository institution does not have a pre-existing
business relationship with the consumer and none of the
other exceptions apply. The depository institution is
prohibited from using eligibility information received
from its insurance affiliate to make solicitations to
the consumer about its home equity loan products unless
the consumer is given a notice and opportunity to opt
out and the consumer does not opt out.
(3) Affiliates who may provide the notice.
The notice required by this paragraph must be provided:
(i) By an affiliate that has or has previously
had a pre-existing business relationship with the
consumer; or
(ii) As part of a joint notice from two or more
members of an affiliated group of companies, provided
that at least one of the affiliates on the joint notice
has or has previously had a pre-existing business
relationship with the consumer.
(b) Making solicitations. (1) In general.
For purposes of this subpart, you make a
solicitation for marketing purposes if--
(i) You receive eligibility information from an
affiliate;
(ii) You use that eligibility information to do
one or more of the following:
(A) Identify the consumer or type of consumer
to receive a solicitation;
(B) Establish criteria used to select the
consumer to receive a solicitation; or
(C) Decide which of your products or services
to market to the consumer or tailor your solicitation to
that consumer; and
{{12-31-07 p.2414}}
(iii) As a result of your use of the eligibility
information, the consumer is provided a solicitation.
(2) Receiving eligibility information from an
affiliate, including through a common database. You
may receive eligibility information from an affiliate in
various ways, including when the affiliate places that
information into a common database that you may access.
(3) Receipt or use of eligibility information by
your service provider. Except as provided in
paragraph (b)(5) of this section, you receive or use an
affiliate's eligibility information if a service
provider acting on your behalf (whether an affiliate or
a nonaffiliated third party) receives or uses that
information in the manner described in paragraphs
(b)(1)(i) or (b)(1)(ii) of this section. All relevant
facts and circumstances will determine whether a person
is acting as your service provider when it receives or
uses an affiliate's eligibility information in
connection with marketing your products and services.
(4) Use by an affiliate of its own eligibility
information. Unless you have used eligibility
information that you receive from an affiliate in the
manner described in paragraph (b)(1)(ii) of this
section, you do not make a solicitation subject to this
subpart if your affiliate:
(i) Uses its own eligibility information that it
obtained in connection with a pre-existing business
relationship it has or had with the consumer to market
your products or services to the consumer; or
(ii) Directs its service provider to use the
affiliate's own eligibility information that it obtained
in connection with a pre-existing business relationship
it has or had with the consumer to market your products
or services to the consumer, and you do not communicate
directly with the service provider regarding that use.
(5) Use of eligibility information by a service
provider. (i) In general. You do not make a
solicitation subject to Subpart C of this part if a
service provider (including an affiliated or third-party
service provider that maintains or accesses a common
database that you may access) receives eligibility
information from your affiliate that your affiliate
obtained in connection with a pre-existing business
relationship it has or had with the consumer and uses
that eligibility information to market your products or
services to the consumer, so long as--
(A) Your affiliate controls access to and use
of its eligibility information by the service provider
(including the right to establish the specific terms and
conditions under which the service provider may use such
information to market your products or services);
(B) Your affiliate establishes specific terms
and conditions under which the service provider may
access and use the affiliate's eligibility information
to market your products and services (or those of
affiliates generally) to the consumer, such as the
identity of the affiliated companies whose products or
services may be marketed to the consumer by the service
provider, the types of products or services of
affiliated companies that may be marketed, and the
number of times the consumer may receive marketing
materials, and periodically evaluates the service
provider's compliance with those terms and conditions;
(C) Your affiliate requires the service
provider to implement reasonable policies and procedures
designed to ensure that the service provider uses the
affiliate's eligibility information in accordance with
the terms and conditions established by the affiliate
relating to the marketing of your products or services;
(D) Your affiliate is identified on or with the
marketing materials provided to the consumer; and
(E) You do not directly use your affiliate's
eligibility information in the manner described in
paragraph (b)(1)(ii) of this section.
(ii) Writing requirements. (A) The
requirements of paragraphs (b)(5)(i)(A) and (C) of this
section must be set forth in a written agreement between
your affiliate and the service provider; and
(B) The specific terms and conditions
established by your affiliate as provided in paragraph
(b)(5)(i)(B) of this section must be set forth in
writing.
{{12-31-07 p.2414.01}}
(6) Examples of making solicitations. (i) A
consumer has a deposit account with a depository
institution, which is affiliated with an insurance
company. The insurance company receives eligibility
information about the consumer from the depository
institution. The insurance company uses that eligibility
information to identify the consumer to receive a
solicitation about insurance products, and, as a result,
the insurance company provides a solicitation to the
consumer about its insurance products. Pursuant to
paragraph (b)(1) of this section, the insurance company
has made a solicitation to the consumer.
(ii) The same facts as in the example in
paragraph (b)(6)(i) of this section, except that after
using the eligibility information to identify the
consumer to receive a solicitation about insurance
products, the insurance company asks the depository
institution to send the solicitation to the consumer and
the depository institution does so. Pursuant to
paragraph (b)(1) of this section, the insurance company
has made a solicitation to the consumer because it used
eligibility information about the consumer that it
received from an affiliate to identify the consumer to
receive a solicitation about its products or services,
and, as a result, a solicitation was provided to the
consumer about the insurance company's products.
(iii) The same facts as in the example in
paragraph (b)(6)(i) of this section, except that
eligibility information about consumers that have
deposit accounts with the depository institution is
placed into a common database that all members of the
affiliated group of companies may independently access
and use. Without using the depository institution's
eligibility information, the insurance company develops
selection criteria and provides those criteria,
marketing materials, and related instructions to the
depository institution. The depository institution
reviews eligibility information about its own consumers
using the selection criteria provided by the insurance
company to determine which consumers should receive the
insurance company's marketing materials and sends
marketing materials about the insurance company's
products to those consumers. Even though the insurance
company has received eligibility information through the
common database as provided in paragraph (b)(2) of this
section, it did not use that information to identify
consumers or establish selection criteria; instead, the
depository institution used its own eligibility
information. Therefore, pursuant to paragraph (b)(4)(i)
of this section, the insurance company has not made a
solicitation to the consumer.
(iv) The same facts as in the example in
paragraph (b)(6)(iii) of this section, except that the
depository institution provides the insurance company's
criteria to the depository institution's service
provider and directs the service provider to use the
depository institution's eligibility information to
identify depository institution consumers who meet the
criteria and to send the insurance company's marketing
materials to those consumers. The insurance company does
not communicate directly with the service provider
regarding the use of the depository institution's
information to market its products to the depository
institution's consumers. Pursuant to paragraph
(b)(4)(ii) of this section, the insurance company has
not made a solicitation to the consumer.
(v) An affiliated group of companies includes a
depository institution, an insurance company, and a
service provider. Each affiliate in the group places
information about its consumers into a common database.
The service provider has access to all information in
the common database. The depository institution controls
access to and use of its eligibility information by the
service provider. This control is set forth in a written
agreement between the depository institution and the
service provider. The written agreement also requires
the service provider to establish reasonable policies
and procedures designed to ensure that the service
provider uses the depository institution's eligibility
information in accordance with specific terms and
conditions established by the depository institution
relating to the marketing of the products and services
of all affiliates, including the insurance company. In a
separate written communication, the depository
institution specifies the terms and conditions under
which the service provider may use the depository
institution's eligibility information to market the
insurance company's products and services to the
depository institution's consumers. The specific terms
and conditions are: a list of affiliated companies
(including the insurance company) whose products or
services may be marketed to the depository institution's
consumers by the service provider; the specific products
or types of
{{12-31-07 p.2414.02}}products that may be
marketed to the depository institution's consumers by
the service provider; the categories of eligibility
information that may be used by the service provider in
marketing products or services to the depository
institution's consumers; the types or categories of the
depository institution's consumers to whom the service
provider may market products or services of depository
institution affiliates; the number and/or types of
marketing communications that the service provider may
send to the depository institution's consumers; and the
length of time during which the service provider may
market the products or services of the depository
institution's affiliates to its consumers. The
depository institution periodically evaluates the
service provider's compliance with these terms and
conditions. The insurance company asks the service
provider to market insurance products to certain
consumers who have deposit accounts with the depository
institution. Without using the depository institution's
eligibility information, the insurance company develops
selection criteria and provides those criteria,
marketing materials, and related instructions to the
service provider. The service provider uses the
depository institution's eligibility information from
the common database to identify the depository
institution's consumers to whom insurance products will
be marketed. When the insurance company's marketing
materials are provided to the identified consumers, the
name of the depository institution is displayed on the
insurance marketing materials, an introductory letter
that accompanies the marketing materials, an account
statement that accompanies the marketing materials, or
the envelope containing the marketing materials. The
requirements of paragraph (b)(5) of this section have
been satisfied, and the insurance company has not made a
solicitation to the consumer.
(vi) The same facts as in the example in
paragraph (b)(6)(v) of this section, except that the
terms and conditions permit the service provider to use
the depository institution's eligibility information to
market the products and services of other affiliates to
the depository institution's consumers whenever the
service provider deems it appropriate to do so. The
service provider uses the depository institution's
eligibility information in accordance with the
discretion afforded to it by the terms and conditions.
Because the terms and conditions are not specific, the
requirements of paragraph (b)(5) of this section have
not been satisfied.
(c) Exceptions. The provisions of this subpart
do not apply to you if you use eligibility information
that you receive from an affiliate:
(1) To make a solicitation for marketing purposes
to a consumer with whom you have a pre-existing business
relationship;
(2) To facilitate communications to an individual
for whose benefit you provide employee benefit or other
services pursuant to a contract with an employer related
to and arising out of the current employment
relationship or status of the individual as a
participant or beneficiary of an employee benefit plan;
(3) To perform services on behalf of an affiliate,
except that this subparagraph shall not be construed as
permitting you to send solicitations on behalf of an
affiliate if the affiliate would not be permitted to
send the solicitation as a result of the election of the
consumer to opt out under this subpart;
(4) In response to a communication about your
products or services initiated by the consumer;
(5) In response to an authorization or request by
the consumer to receive solicitations; or
(6) If your compliance with this subpart would
prevent you from complying with any provision of State
insurance laws pertaining to unfair discrimination in
any State in which you are lawfully doing business.
(d) Examples of exceptions. (1) Example
of the pre-existing business relationship exception.
A consumer has a deposit account with a depository
institution. The consumer also has a relationship with
the depository institution's securities affiliate for
management of the consumer's securities portfolio. The
depository institution receives eligibility information
about the consumer from its securities affiliate and
uses that information to make a solicitation to the
consumer about the depository institution's wealth
management services.
{{12-31-07 p.2414.03}}The depository institution
may make this solicitation even if the consumer has not
been given a notice and opportunity to opt out because
the depository institution has a pre-existing business
relationship with the consumer.
(2) Examples of service provider exception. (i) A
consumer has an insurance policy issued by an insurance
company. The insurance company furnishes eligibility
information about the consumer to its affiliated
depository institution. Based on that eligibility
information, the depository institution wants to make a
solicitation to the consumer about its deposit products.
The depository institution does not have a pre-existing
business relationship with the consumer and none of the
other exceptions in paragraph (c) of this section apply.
The consumer has been given an opt-out notice and has
elected to opt out of receiving such solicitations. The
depository institution asks a service provider to send
the solicitation to the consumer on its behalf. The
service provider may not send the solicitation on behalf
of the depository institution because, as a result of
the consumer's opt-out election, the depository
institution is not permitted to make the solicitation.
(ii) The same facts as in paragraph (d)(2)(i) of
his section, except the consumer has been given an
opt-out notice, but has not elected to opt out. The
depository institution asks a service provider to send
the solicitation to the consumer on its behalf. The
service provider may send the solicitation on behalf of
the depository institution because, as a result of the
consumer's not opting out, the depository institution is
permitted to make the solicitation.
(3) Examples of consumer-initiated
communications. (i) A consumer who has a deposit
account with a depository institution initiates a
communication with the depository institution's credit
card affiliate to request information about a credit
card. The credit card affiliate may use eligibility
information about the consumer it obtains from the
depository institution or any other affiliate to make
solicitations regarding credit card products in response
to the consumer-initiated communication.
(ii) A consumer who has a deposit account with a
depository institution contacts the institution to
request information about how to save and invest for a
child's college education without specifying the type of
product in which the consumer may be interested.
Information about a range of different products or
services offered by the depository institution and one
or more affiliates of the institution may be responsive
to that communication. Such products or services may
include the following: Mutual funds offered by the
institution's mutual fund affiliate; section 529 plans
offered by the institution, its mutual fund affiliate,
or another securities affiliate; or trust services
offered by a different financial institution in the
affiliated group. Any affiliate offering investment
products or services that would be responsive to the
consumer's request for information about saving and
investing for a child's college education may use
eligibility information to make solicitations to the
consumer in response to this communication.
(iii) A credit card issuer makes a marketing call
to the consumer without using eligibility information
received from an affiliate. The issuer leaves a
voice-mail message that invites the consumer to call a
toll-free number to apply for the issuer's credit card.
If the consumer calls the toll-free number to inquire
about the credit card, the call is a consumer-initiated
communication about a product or service that the credit
card issuer may now use eligibility information it
receives from its affiliates to make solicitations to
the consumer.
(iv) A consumer calls a depository institution to
ask about retail locations and hours, but does not
request information about products or services. The
institution may not use eligibility information it
receives from an affiliate to make solicitations to the
consumer about its products or services because the
consumer-initiated communication does not relate to the
depository institution's products or services. Thus, the
use of eligibility information received from an
affiliate would not be responsive to the communication
and the exception does not apply.
(v) A consumer calls a depository institution to
ask about retail locations and hours. The customer
service representative asks the consumer if there is a
particular product or service about which the consumer
is seeking information. The consumer responds that
{{12-31-07 p.2414.04}}the consumer wants to stop
in and find out about certificates of deposit. The
customer service representative offers to provide that
information by telephone and mail additional information
and application materials to the consumer. The consumer
agrees and provides or confirms contact information for
receipt of the materials to be mailed. The depository
institution may use eligibility information it receives
from an affiliate to make solicitations to the consumer
about certificates of deposit because such solicitations
would respond to the consumer-initiated communication
about products or services.
(4) Examples of consumer authorization or
request for solicitations. (i) A consumer who
obtains a mortgage from a mortgage lender authorizes or
requests information about homeowner's insurance offered
by the mortgage lender's insurance affiliate. Such
authorization or request, whether given to the mortgage
lender or to the insurance affiliate, would permit the
insurance affiliate to use eligibility information about
the consumer it obtains from the mortgage lender or any
other affiliate to make solicitations to the consumer
about homeowner's insurance.
(ii) A consumer completes an online application
to apply for a credit card from a credit card issuer.
The issuer's online application contains a blank check
box that the consumer may check to authorize or request
information from the credit card issuer's affiliates.
The consumer checks the box. The consumer has authorized
or requested solicitations from the card issuer's
affiliates.
(iii) A consumer completes an online application
to apply for a credit card from a credit card issuer.
The issuer's online application contains a pre-selected
check box indicating that the consumer authorizes or
requests information from the issuer's affiliates. The
consumer does not deselect the check box. The consumer
has not authorized or requested solicitations from the
card issuer's affiliates.
(iv) The terms and conditions of a credit card
account agreement contain preprinted boilerplate
language stating that by applying to open an account the
consumer authorizes or requests to receive solicitations
from the credit card issuer's affiliates. The consumer
has not authorized or requested solicitations from the
card issuer's affiliates.
(e) Relation to affiliate-sharing notice and
opt-out. Nothing in this subpart limits the
responsibility of a person to comply with the notice and
opt-out provisions of section 603(d)(2)(A)(iii) of the
Act where applicable.
[Codified to 12 C.F.R. § 334.21]
[Section 334.21 added at 72 Fed. Reg. 62965, November
7, 2007, effective January 1, 2008, the mandatory
compliance date is October 1, 2008]
§ 334.22 Scope and duration of opt-out.
(a) Scope of opt-out. (1) In general.
Except as otherwise provided in this section, the
consumer's election to opt out prohibits any affiliate
covered by the opt-out notice from using eligibility
information received from another affiliate as described
in the notice to make solicitations to the consumer.
(2) Continuing relationship. (i) In
general. If the consumer establishes a continuing
relationship with you or your affiliate, an opt-out
notice may apply to eligibility information obtained in
connection with--
(A) A single continuing relationship or
multiple continuing relationships that the consumer
establishes with you or your affiliates, including
continuing relationships established subsequent to
delivery of the opt-out notice, so long as the notice
adequately describes the continuing relationships
covered by the opt-out; or
(B) Any other transaction between the consumer
and you or your affiliates as described in the notice.
(ii) Examples of continuing relationships.
A consumer has a continuing relationship with you or
your affiliate if the consumer--
(A) Opens a deposit or investment account with
you or your affiliate;
(B) Obtains a loan for which you or your
affiliate owns the servicing rights;
(C) Purchases an insurance product from you or
your affiliate;
{{12-31-07 p.2414.05}}
(D) Holds an investment product through you or
your affiliate, such as when you act or your affiliate
acts as a custodian for securities or for assets in an
individual retirement arrangement;
(E) Enters into an agreement or understanding
with you or your affiliate whereby you or your affiliate
undertakes to arrange or broker a home mortgage loan for
the consumer;
(F) Enters into a lease of personal property
with you or your affiliate; or
(G) Obtains financial, investment, or economic
advisory services from you or your affiliate for a fee.
(3) No continuing relationship. (i) In
general. If there is no continuing relationship
between a consumer and you or your affiliate, and you or
your affiliate obtain eligibility information about a
consumer in connection with a transaction with the
consumer, such as an isolated transaction or a credit
application that is denied, an opt-out notice provided
to the consumer only applies to eligibility information
obtained in connection with that transaction.
(ii) Examples of isolated transactions. An
isolated transaction occurs if--
(A) The consumer uses your or your affiliate's
ATM to withdraw cash from an account at another
financial institution; or
(B) You or your affiliate sells the consumer a
cashier's check or money order, airline tickets, travel
insurance, or traveler's checks in isolated
transactions.
(4) Menu of alternatives. A consumer may be
given the opportunity to choose from a menu of
alternatives when electing to prohibit solicitations,
such as by electing to prohibit solicitations from
certain types of affiliates covered by the opt-out
notice but not other types of affiliates covered by the
notice, electing to prohibit solicitations based on
certain types of eligibility information but not other
types of eligibility information, or electing to
prohibit solicitations by certain methods of delivery
but not other methods of delivery. However, one of the
alternatives must allow the consumer to prohibit all
solicitations from all of the affiliates that are
covered by the notice.
(5) Special rule for a notice following
termination of all continuing relationships. (i) In
general. A consumer must be given a new opt-out
notice if, after all continuing relationships with you
or your affiliate(s) are terminated, the consumer
subsequently establishes another continuing relationship
with you or your affiliate(s) and the consumer's
eligibility information is to be used to make a
solicitation. The new opt-out notice must apply, at a
minimum, to eligibility information obtained in
connection with the new continuing relationship.
Consistent with paragraph (b) of this section, the
consumer's decision not to opt out after receiving the
new opt-out notice would not override a prior opt-out
election by the consumer that applies to eligibility
information obtained in connection with a terminated
relationship, regardless of whether the new opt-out
notice applies to eligibility information obtained in
connection with the terminated relationship.
(ii) Example. A consumer has a checking
account with a depository institution that is part of an
affiliated group. The consumer closes the checking
account. One year after closing the checking account,
the consumer opens a savings account with the same
depository institution. The consumer must be given a new
notice and opportunity to opt out before the depository
institution's affiliates may make solicitations to the
consumer using eligibility information obtained by the
depository institution in connection with the new
savings account relationship, regardless of whether the
consumer opted out in connection with the checking
account.
(b) Duration of opt-out. The election of a
consumer to opt out must be effective for a period of at
least five years (the "opt-out period") beginning when
the consumer's opt out election is received and
implemented, unless the consumer subsequently revokes
the opt-out in writing or, if the consumer agrees,
electronically. An opt-out period of more than five
years may be established, including an opt-out period
that does not expire unless revoked by the consumer.
(c) Time of opt-out. A consumer may opt out at
any time.
[Codified to 12 C.F.R. § 334.22]
[Section 334.22 added at 72 Fed. Reg. 62968, November
7, 2007, effective January 1, 2008, the mandatory
compliance date is October 1, 2008]
{{12-31-07 p.2414.06}}
§ 334.23 Contents of opt-out notice; consolidated
and equivalent notices.
(a) Contents of opt-out notice. (1) In
general. A notice must be clear, conspicuous, and
concise, and must accurately disclose:
(i) The name of the affiliate(s) providing the
notice. If the notice is provided jointly by multiple
affiliates and each affiliate shares a common name, such
as "ABC," then the notice may indicate that it is being
provided by multiple companies with the ABC name or
multiple companies in the ABC group or family of
companies, for example, by stating that the notice is
provided by "all of the ABC companies," "the ABC
banking, credit card, insurance, and securities
companies," or by listing the name of each affiliate
providing the notice. But if the affiliates providing
the joint notice do not all share a common name, then
the notice must either separately identify each
affiliate by name or identify each of the common names
used by those affiliates, for example, by stating that
the notice is provided by "all of the ABC and XYZ
companies" or by "the ABC banking and credit card
companies and the XYZ insurance companies";
(ii) A list of the affiliates or types of
affiliates whose use of eligibility information is
covered by the notice, which may include companies that
become affiliates after the notice is provided to the
consumer. If each affiliate covered by the notice shares
a common name, such as "ABC," then the notice may
indicate that it applies to multiple companies with the
ABC name or multiple companies in the ABC group or
family of companies, for example, by stating that the
notice is provided by "all of the ABC companies," "the
ABC banking, credit card, insurance, and securities
companies," or by listing the name of each affiliate
providing the notice. But if the affiliates covered by
the notice do not all share a common name, then the
notice must either separately identify each covered
affiliate by name or identify each of the common names
used by those affiliates, for example, by stating that
the notice applies to "all of the ABC and XYZ companies"
or to "the ABC banking and credit card companies and the
XYZ insurance companies";
(iii) A general description of the types of
eligibility information that may be used to make
solicitations to the consumer;
(iv) That the consumer may elect to limit the use
of eligibility information to make solicitations to the
consumer;
(v) That the consumer's election will apply for
the specified period of time stated in the notice and,
if applicable, that the consumer will be allowed to
renew the election once that period expires;
(vi) If the notice is provided to consumers who
may have previously opted out, such as if a notice is
provided to consumers annually, that the consumer who
has chosen to limit solicitations does not need to act
again until the consumer receives a renewal notice; and
(vii) A reasonable and simple method for the
consumer to opt out.
(2) Joint relationships. (i) If two or
more consumers jointly obtain a product or service, a
single opt-out notice may be provided to the joint
consumers. Any of the joint consumers may exercise the
right to opt out.
(ii) The opt-out notice must explain how an
opt-out direction by a joint consumer will be treated.
An opt-out direction by a joint consumer may be treated
as applying to all of the associated joint consumers, or
each joint consumer may be permitted to opt out
separately. If each joint consumer is permitted to opt
out separately, one of the joint consumers must be
permitted to opt out on behalf of all of the joint
consumers and the joint consumers must be permitted to
exercise their separate rights to opt out in a single
response.
(iii) It is impermissible to require all
joint consumers to opt out before implementing any
opt-out direction.
(3) Alternative contents. If the consumer is
afforded a broader right to opt out of receiving
marketing than is required by this subpart, the
requirements of this section may be satisfied by
providing the consumer with a clear, conspicuous, and
concise notice that accurately discloses the consumer's
opt-out rights.
{{12-31-07 p.2414.07}}
(4) Model notices. Model notices are
provided in Appendix C of this part.
(b) Coordinated and consolidated notices. A
notice required by this subpart may be coordinated and
consolidated with any other notice or disclosure
required to be issued under any other provision of law
by the entity providing the notice, including but not
limited to the notice described in section 603(d)(2)(A)(iii)
of the Act and the Gramm-Leach-Bliley Act privacy
notice.
(c) Equivalent notices. A notice or other
disclosure that is equivalent to the notice required by
this subpart, and that is provided to a consumer
together with disclosures required by any other
provision of law, satisfies the requirements of this
section.
[Codified to 12 C.F.R. § 334.23]
[Section 334.23 added at 72 Fed. Reg. 62969, November
7, 2007, effective January 1, 2008, the mandatory
compliance date is October 1, 2008]
§ 334.24 Reasonable opportunity to opt out.
(a) In general. You must not use eligibility
information about a consumer that you receive from an
affiliate to make a solicitation to the consumer about
your products or services, unless the consumer is
provided a reasonable opportunity to opt out, as
required by § 334.21(a)(1)(ii) of this part.
(b) Examples of a reasonable opportunity to opt
out. The consumer is given a reasonable opportunity
to opt out if:
(1) By mail. The opt-out notice is mailed to
the consumer. The consumer is given 30 days from the
date the notice is mailed to elect to opt out by any
reasonable means.
(2) By electronic means. (i) the opt-out
notice is provided electronically to the consumer, such
as by posting the notice at an Internet Web site at
which the consumer has obtained a product or service.
The consumer acknowledges receipt of the electronic
notice. The consumer is given 30 days after the date the
consumer acknowledges receipt to elect to opt out by any
reasonable means.
(ii) The opt-out notice is provided to the
consumer by e-mail where the consumer has agreed to
receive disclosures by e-mail from the person sending
the notice. The consumer is given 30 days after the
e-mail is sent to elect to opt out by any reasonable
means.
(3) At the time of an electronic transaction.
The opt-out notice is provided to the consumer at
the time of an electronic transaction, such as a
transaction conducted on an Internet Web site. The
consumer is required to decide, as a necessary part of
proceeding with the transaction, whether to opt out
before completing the transaction. There is a simple
process that the consumer may use to opt out at that
time using the same mechanism through which the
transaction is conducted.
(4) At the time of an in-person transaction.
The opt-out notice is provided to the consumer in
writing at the time of an in-person transaction. The
consumer is required to decide, as a necessary part of
proceeding with the transaction, whether to opt out
before completing the transaction, and is not permitted
to complete the transaction without making a choice.
There is a simple process that the consumer may use
during the course of the in-person transaction to opt
out, such as completing a form that requires consumers
to write a "yes" or "no" to indicate their opt-out
preference or that requires the consumer to check one of
two blank check boxes--one that allows consumers to
indicate that they want to opt out and one that allows
consumers to indicate that they do not want to opt out.
(5) By including in a privacy notice. The
opt-out notice is included in a Gramm-Leach-Bliley Act
privacy notice. The consumer is allowed to exercise the
opt-out within a reasonable period of time and in the
same manner as the opt-out under that privacy notice.
[Codified to 12 C.F.R. § 334.24]
[Section 334.24 added at 72 Fed. Reg. 62969, November
7, 2007, effective January 1, 2008, the mandatory
compliance date is October 1, 2008]
{{12-31-07 p.2414.08}}
§ 334.25 Reasonable and simple methods of opting
out.
(a) In general. You must not use eligibility
information about a consumer that you receive from an
affiliate to make a solicitation to the consumer about
your products or services, unless the consumer is
provided a reasonable and simple method to opt out, as
required by § 334.21(a)(1)(ii) of this part.
(b) Examples. (1) Reasonable and simple
opt-out methods. Reasonable and simple methods for
exercising the opt-out right include--
(i) Designating a check-off box in a prominent
position on the opt-out form;
(ii) Including a reply form and a self-addressed
envelope together with the opt-out notice;
(iii) Providing an electronic means to opt out,
such as a form that can be electronically mailed or
processed at an Internet Web site, if the consumer
agrees to the electronic delivery of information;
(iv) Providing a toll-free telephone number that
consumers may call to opt out; or
(v) Allowing consumers to exercise all of their
opt-out rights described in a consolidated opt-out
notice that includes the privacy opt-out under the Gramm-Leach-Bliley
Act, 15 U.S.C. 6801 et seq., the affiliate
sharing opt-out under the Act, and the affiliate
marketing opt-out under the Act, by a single method,
such as by calling a single toll-free telephone number.
(2) Opt-out methods that are not reasonable and
simple. Reasonable and simple methods for exercising
an opt-out right do not include--
(i) Requiring the consumer to write his or her
own letter;
(ii) Requiring the consumer to call or write to
obtain a form for opting out, rather than including the
form with the opt-out notice;
(iii) Requiring the consumer who receives the
opt-out notice in electronic form only, such as through
posting at an Internet Web site, to opt out solely by
paper mail or by visiting a different Web site without
providing a link to that site.
(c) Specific opt-out means. Each consumer may
be required to opt out through a specific means, as long
as that means is reasonable and simple for that
consumer.
[Codified to 12 C.F.R. § 334.25]
[Section 334.25 added at 72 Fed. Reg. 62970, November
7, 2007, effective January 1, 2008, the mandatory
compliance date is October 1, 2008]
§ 334.26 Delivery of opt-out notices.
(a) In general. The opt-out notice must be
provided so that each consumer can reasonably be
expected to receive actual notice. For opt-out notices
provided electronically, the notice may be provided in
compliance with either the electronic disclosure
provisions in this subpart or the provisions in section
101 of the Electronic Signatures in Global and National
Commerce Act, 15 U.S.C. 7001 et seq.
(b) Examples of reasonably expectation of actual
notice. A consumer may reasonably be expected to
receive actual notice if the affiliate providing the
notice:
(1) Hand-delivers a printed copy of the notice to
the consumer.
(2) Mails a printed copy of the notice to the last
known mailing address of the consumer;
(3) Provides a notice by e-mail to a consumer who
has agreed to receive electronic disclosures by e-mail
from the affiliate providing the notice; or
(4) Posts the notice on the Internet Web site at
which the consumer obtained a product or service
electronically and requires the consumer to acknowledge
receipt of the notice.
(c) Examples of no reasonable expectation of
actual notice. A consumer may not reasonably
be expected to receive actual notice if the affiliate
providing the notice:
(1) Only posts the notice on a sign in a branch or
office or generally publishes the notice in a newspaper;
{{12-31-07 p.2414.09}}
(2) Sends the notice via e-mail to a consumer who
has not agreed to receive electronic disclosures by
e-mail from the affiliate providing the notice; or
(3) Posts the notice on an Internet Web site
without requiring the consumer to acknowledge receipt of
the notice.
[Codified to 12 C.F.R. § 334.26]
[Section 334.26 added at 72 Fed. Reg. 62970, November
7, 2007, effective January 1, 2008, the mandatory
compliance date is October 1, 2008]
§ 334.27 Renewal of opt-out.
(a) Renewal notice and opt-out requirement. (1) In
general. After the opt-out period expires, you may
not make solicitations based on eligibility information
you receive from an affiliate to a consumer who
previously opted out, unless:
(i) The consumer has been given a renewal notice
that complies with the requirements of this section and
§§ 334.24 through 334.26 of this part, and a reasonable
opportunity and a reasonable and simple method to renew
the opt-out, and the consumer does not renew the
opt-out; or
(ii) An exception in § 334.21(c) of this part
applies.
(2) Renewal period. Each opt-out renewal
must be effective for a period of at least five years as
provided in § 334.22(b) of this part.
(3) Affiliates who may provide the notice.
The notice required by this paragraph must be provided:
(i) By the affiliate that provided the previous
opt-out notice, or its successor; or
(ii) As part of a joint renewal notice from two
or more members of an affiliated group of companies, or
their successors, that jointly provided the previous
opt-out notice.
(b) Contents of renewal notice. The renewal
notice must be clear, conspicuous, and concise, and must
accurately disclose:
(1) The name of the affiliate(s) providing the
notice. If the notice is provided jointly by multiple
affiliates and each affiliate shares a common name, such
as "ABC," then the notice may indicate that it is being
provided by multiple companies with the ABC name or
multiple companies in the ABC group or family of
companies, for example, by stating that the notice is
provided by "all of the ABC companies," "the ABC
banking, credit card, insurance, and securities
companies," or by listing the name of each affiliate
providing the notice. But if the affiliate providing the
joint notice do not all share a common name, then the
notice must either separately identify each affiliate by
name or identify each of the common names used by those
affiliates, for example, by stating that the notice is
provided by "all of the ABC and XYZ companies" or by
"the ABC banking and credit card companies and the XYZ
insurance companies;"
(2) A list of the affiliates or types of affiliates
whose use of eligibility information is covered by the
notice, which may include companies that become
affiliates after the notice is provided to the consumer.
If each affiliate covered by the notice shares a common
name, such as "ABC," then the notice may indicate that
it applies to multiple companies with the ABC name or
multiple companies in the ABC group or family of
companies, for example, by stating that the notice is
provided by "all of the ABC companies," "the ABC
banking, credit card, insurance, and securities
companies," or by listing the name of each affiliate
providing the notice. But if the affiliates covered by
the notice do not all share a common name, then the
notice must either separately identify each covered
affiliate by name or identify each of the common names
used by those affiliates, for example, by stating that
the notice applies to "all of the ABC and XYZ companies"
or to "the ABC banking and credit card companies and the
XYZ insurance companies;"
(3) A general description of the types of
eligibility information that may be used to make
solicitations to the consumer;
(4) That the consumer previously elected to limit
the use of certain information to make solicitations to
the consumer;
(5) That the consumer's election has expired or is
about to expire;
{{12-31-07 p.2414.10}}
(6) That the consumer may elect to renew the
consumer's previous election;
(7) If applicable, that the consumer's election to
renew will apply for the specified period of time stated
in the notice and that the consumer will be allowed to
renew the election once that period expires; and
(8) A reasonable and simple method for the consumer
to opt out.
(c) Timing of the renewal notice. (1) In
general. A renewal notice may be provided to the
consumer either--
(i) A reasonable period of time before the
expiration of the opt-out period or
(ii) Any time after the expiration of the opt-out
period but before solicitations that would have been
prohibited by the expired opt-out are made to the
consumer.
(2) Combination with annual privacy notice.
If you provide an annual privacy notice under the Gramm-Leach-Bliley
Act, 15 U.S.C. 6801 et seq., providing a renewal
notice with the last annual privacy notice provided to
the consumer before expiration of the opt-out period is
a reasonable period of time before expiration of the
opt-out in all cases.
(d) No effect on opt-out period. An opt-out
period may not be shortened by sending a renewal notice
to the consumer before expiration of the opt-out period,
even if the consumer does not renew the opt-out.
[Codified to 12 C.F.R. § 334.27]
[Section 334.27 added at 72 Fed. Reg. 62970, November
7, 2007, effective January 1, 2008, the mandatory
compliance date is October 1, 2008]
§ 334.28 Effective date, compliance date, and
prospective application.
(a) Effective date. This subpart is effective
January 1, 2008.
(b) Mandatory compliance date. Compliance with
this subpart is required not later than October 1, 2008.
(c) Prospective application. The provisions of
this subpart shall not prohibit you from using
eligibility information that you receive from an
affiliate to make solicitations to a consumer if you
receive such information prior to October 1, 2008. For
purposes of this section, you are deemed to receive
eligibility information when such information is placed
into a common database and is accessible by you.
[Codified to 12 C.F.R. § 334.28]
[Section 334.28 added at 72 Fed. Reg. 62971, November
7, 2007, effective January 1, 2008, the mandatory
compliance date is October 1, 2008]
Subpart D—Medical Information
§ 334.30 Obtaining or using medical information in
connection with a determination of eligibility for
credit.
(a) Scope. This section applies to:
(1) Any of the following that participates as a
creditor in a transaction--
(i) A State bank insured by the FDIC (other than
members of the Federal Reserve System);
(ii) An insured State branch of a foreign bank;
or
(2) Any other person that participates as a
creditor in a transaction involving a person described
in paragraph (a)(1) of this section.
(b) General prohibition on obtaining or using
medical information. (1) In general. A
creditor may not obtain or use medical information
pertaining to a consumer in connection with any
determination of the consumer's eligibility, or
continued eligibility, for credit, except as provided in
this section.
(2) Definitions. (i) Credit has the
same meaning as in section 702 of the Equal Credit
Opportunity Act, 15 U.S.C. 1691a.
(ii) Creditor has the same meaning as in
section 702 of the Equal Credit Opportunity Act, 15
U.S.C. 1691a.
{{12-31-07 p.2414.11}}
(iii) Eligibility, or continued eligibility,
for credit means the consumer's qualification or
fitness to receive, or continue to receive, credit,
including the terms on which credit is offered. The term
does not include:
(A) Any determination of the consumer's
qualification or fitness for employment, insurance
(other than a credit insurance product), or other
non-credit products or services;
(B) Authorizing, processing, or documenting a
payment or transaction on behalf of the consumer in a
manner that does not involve a determination of the
consumer's eligibility, or continued eligibility, for
credit; or
(C) Maintaining or servicing the consumer's
account in a manner that does not involve a
determination of the consumer's eligibility, or
continued eligibility, for credit.
(c) Rule of construction for obtaining and using
unsolicited medical information. (1) In general.
A creditor does not obtain medical information in
violation of the prohibition if it and Regulations
receives medical information pertaining to a consumer in
connection with any determination of the consumer's
eligibility, or continued eligibility, for credit
without specifically requesting medical information.
(2) Use of unsolicited medical information.
A creditor that receives unsolicited medical information
in the manner described in paragraph (c)(1) of this
section may use that information in connection with any
determination of the consumer's eligibility, or
continued eligibility, for credit to the extent the
creditor can relay on at least one of the exceptions in
§ 334.30(d) or (e).
(3) Examples. A creditor does not obtain
medical information in violation of the prohibition if,
for example:
(i) In response to a general question regarding a
consumer's debts or expenses, the creditor receives
information that the consumer owes a debt to a hospital.
(ii) In a conversation with the creditor's loan
officer, the consumer informs the creditor that the
consumer has a particular medical condition.
(iii) In connection with a consumer's application
for an extension of credit, the creditor requests a
consumer report from a consumer reporting agency and
receives medical information in the consumer report
furnished by the agency even though the creditor did not
specifically request medical information from the
consumer reporting agency.
(d) Financial information exception for obtaining
and using medical information. (1) In general.
A creditor may obtain and use medical information
pertaining to a consumer in connection with any
determination of the consumer's eligibility, or
continued eligibility, for credit so long as:
(i) The information is the type of information
routinely used in making credit eligibility
determinations, such as information relating to debts,
expenses, income, benefits, assets, collateral, or the
purpose of the loan, including the use of proceeds;
(ii) The creditor uses the medical information in
a manner and to an extent that is no less favorable than
it would use comparable information that is not medical
information in a credit transaction; and
(iii) The creditor does not take the consumer's
physical, mental, or behavioral health, condition or
history, type of treatment, or prognosis into account as
part of any such determination.
(2) Examples. (i) Examples of the types
of information routinely used in making credit
eligibility determinations. Paragraph (d)(1)(i) of
this section permits a creditor, for example, to obtain
and use information about:
(A) The dollar amount, repayment terms,
repayment history, and similar information regarding
medical debts to calculate, measure, or verify the
repayment ability of the consumer, the use of proceeds,
or the terms for granting credit;
(B) The value, condition, and lien status of a
medical device that may serve as collateral to secure a
loan;
(C) The dollar amount and continued eligibility
for disability income or benefits related to health or a
medical condition that is relied on as a source of
repayment; or
{{12-31-07 p.2414.12}}
(D) The identity of creditors to whom
outstanding medical debts are owed in connection with an
application for credit, including but not limited to, a
transaction involving the consolidation of medical
debts.
(ii) Examples of uses of medical information
consistent with the exception. (A) A consumer
includes on an application for credit information about
two $20,000 debts. One debt is to a hospital; the other
debt is to a retailer. The creditor contacts the
hospital and the retailer to verify the amount and
payment status of the debts. The creditor learns that
both debts are more than 90 days past due. Any two debts
of this size that are more than 90 days past due would
disqualify the consumer under the creditor's established
underwriting criteria. The creditor denies the
application on the basis that the consumer has a poor
repayment history on outstanding debts. The creditor has
used medical information in a manner and to an extent no
less favorable than it would use comparable non-medical
information.
(B) A consumer indicates on an application for
a $200,000 mortgage loan that she receives $15,000 in
long-term disability income each year from her former
employer and has no other income. Annual income of
$15,000, regardless of source, would not be sufficient
to support the requested amount of credit. The creditor
denies the application on the basis that the projected
debt-to-income ratio of the consumer does not meet the
creditor's underwriting criteria. The creditor has used
medical information in a manner and to an extent that is
no less favorable than it would use comparable
non-medical information.
(C) A consumer includes on an application for a
$10,000 home equity loan that he has a $50,000 debt to a
medical facility that specializes in treating a
potentially terminal disease. The creditor contacts the
medical facility to verify the debt and obtain the
repayment history and current status of the loan. The
creditor learns that the debt is current. The applicant
meets the income and other requirements of the
creditor's underwriting guidelines. The creditor grants
the application. The creditor has used medical
information in accordance with the exception.
(iii) Examples of uses of medical information
inconsistent with the exception. (A) A consumer
applies for $25,000 of credit and includes on the
application information about a $50,000 debt to a
hospital. The creditor contacts the hospital to verify
the amount and payment status of the debt, and learns
that the debt is current and that the consumer has no
delinquencies in her repayment history. If the existing
debt were instead owed to a retail department store, the
creditor would approve the application and extend credit
based on the amount and repayment history of the
outstanding debt. The creditor, however, denies the
application because the consumer is indebted to a
hospital. The creditor has used medical information,
here the identity of the medical creditor, in a manner
and to an extent that is less favorable than it would
use comparable non-medical information.
(B) A consumer meets with a loan officer of a
creditor to apply for a mortgage loan. While filling out
the loan application, the consumer informs the loan
officer orally that she has a potentially terminal
disease. The consumer meets the creditor's established
requirements for the requested mortgage loan. The loan
officer recommends to the credit committee that the
consumer be denied credit because the consumer has that
disease. The credit committee follows the loan officer's
recommendation and denies the application because the
consumer has a potentially terminal disease. The
creditor has used medical information in a manner
inconsistent with the exception by taking into account
the consumer's physical, mental, or behavioral health,
condition, or history, type of treatment, or prognosis
as part of a determination of eligibility or continued
eligibility for credit.
(C) A consumer who has an apparent medical
condition, such as a consumer who uses a wheelchair or
an oxygen tank, meets with a loan officer to apply for a
home equity loan. The consumer meets the creditor's
established requirements for the requested home equity
loan and the creditor typically does not require
consumers to obtain a debt cancellation contract, debt
suspension agreement, or credit insurance product in
connection with such loans. However, based on the
consumer's apparent medical condition, the loan officer
recommends to the credit committee that credit be
extended to the consumer only if
{{12-31-07 p.2414.13}}the consumer obtains a debt
cancellation contract, debt suspension agreement, or
credit insurance product. The credit committee agrees
with the loan officer's recommendation. The loan officer
informs the consumer that the consumer must obtain a
debt cancellation contract, debt suspension agreement,
or credit insurance product to qualify for the loan. The
consumer obtains one of these products from a third
party and the creditor approves the loan. The creditor
has used medical information in a manner inconsistent
with the exception by taking into account the consumer's
physical, mental, or behavioral health, condition, or
history, type of treatment, or prognosis in setting
conditions on the consumer's eligibility for credit.
(e) Specific exceptions for obtaining and using
medical information. (1) In general. A
creditor may obtain and use medical information
pertaining to a consumer in connection with any
determination of the consumer's eligibility, or
continued eligibility, for credit--
(i) To determine whether the use of a power of
attorney or legal representative that is triggered by a
medical event or condition is necessary and appropriate
or whether the consumer has the legal capacity to
contract when a person seeks to exercise a power of
attorney or act as legal representative for a consumer
based on an asserted medical event or condition;
(ii) To comply with applicable requirements of
local, State, or Federal laws;
(iii) To determine, at the consumer's request,
whether the consumer qualifies for a legally permissible
special credit program or credit-related assistance
program that is--
(A) Designed to meet the special needs of
consumers with medical conditions; and
(B) Established and administered pursuant to a
written plan that--
(1) Identifies the class of persons
that the program is designed to benefit; and
(2) Sets forth the procedures and
standards for extending credit or providing other
credit-related assistance under the program.
(iv) To the extent necessary for purposes of
fraud prevention or detection;
(v) In the case of credit for the purpose of
financing medical products or services, to determine and
verify the medical purpose of a loan and the use of
proceeds;
(vi) Consistent with safe and sound practices, if
the consumer or the consumer's legal representative
specifically requests that the creditor use medical
information in determining the consumer's eligibility,
or continued eligibility, for credit, to accommodate the
consumer's particular circumstances, and such request is
documented by the creditor;
(vii) Consistent with safe and sound practices,
to determine whether the provisions of a forbearance
practice or program that is triggered by a medical event
or condition apply to a consumer;
(viii) To determine the consumer's eligibility
for, the triggering of, or the reactivation of a debt
cancellation contract or debt suspension agreement if a
medical condition or event is a triggering event for the
provision of benefits under the contract or agreement;
or
(ix) To determine the consumer's eligibility for,
the triggering of, or the reactivation of a credit
insurance product if a medical condition or event is a
triggering event for the provision of benefits under the
product.
(2) Example of determining eligibility for a
special credit program or credit assistance program.
A not-for-profit organization establishes a credit
assistance program pursuant to a written plan that is
designed to assist disabled veterans in purchasing homes
by subsidizing the down payment for the home purchase
mortgage loans of qualifying veterans. The organization
works through mortgage lenders and requires mortgage
lenders to obtain medical information about the
disability of any consumer that seeks to qualify for the
program, use that information to verify the consumer's
eligibility for the program, and forward that
information to the organization. A consumer who is a
veteran applies to a creditor for a home purchase
mortgage loan. The creditor informs the consumer about
the credit assistance program for disabled veterans and
the consumer seeks to qualify for the program. Assuming
that the program complies with all applicable law,
including applicable
{{12-31-07 p.2414.14}}fair lending laws, the
creditor may obtain and use medical information about
the medical condition and disability, if any, of the
consumer to determine whether the consumer qualifies for
the credit assistance program.
(3) Examples of verifying the medical purpose of
the loan or the use of proceeds. (1) If a consumer
applies for $10,000 of credit for the purpose of
financing vision correction surgery, the creditor may
verify with the surgeon that the procedure will be
performed. If the surgeon reports that surgery will not
be performed on the consumer, the creditor may use that
medical information to deny the consumer's application
for credit, because the loan would not be used for the
stated purpose.
(ii) If a consumer applies for $10,000 of credit
for the purpose of financing cosmetic surgery, the
creditor may confirm the cost of the procedure with the
surgeon. If he surgeon reports that the cost of the
procedure is $5,000, the creditor may use that medical
information to offer the consumer only $5,000 of credit.
(iii) A creditor has an established medical loan
program for financing particular elective surgical
procedures. The creditor receives a loan application
from a consumer requesting $10,000 of credit under the
established loan program for an elective surgical
procedure. The consumer indicates on the application
that the purpose of the loan is to finance an elective
surgical procedure not eligible for funding under the
guidelines of the established loan program. The creditor
may deny the consumer's application because the purpose
of the loan is not for a particular procedure funded by
the established loan program.
(4) Examples of obtaining and using medical
information at the request of the consumer. (i) If a
consumer applies for a loan and specifically requests
that the creditor consider the consumer's medical
disability at the relevant time as an explanation for
adverse payment history information in his credit
report, the creditor may consider such medical
information in evaluating the consumer's willingness and
ability to repay the requested loan to accommodate the
consumer's particular circumstances, consistent with
safe and sound practices. The creditor may also decline
to consider such medical information to accommodate the
consumer, but may evaluate the consumer's application in
accordance with its otherwise applicable underwriting
criteria. The creditor may not deny the consumer's
application or otherwise treat the consumer less
favorably because the consumer specifically requested a
medical accommodation, if the creditor would have
extended the credit or treated the consumer more
favorably under the creditor's otherwise applicable
underwriting criteria.
(ii) If a consumer applies for a loan by
telephone and explains that his income has been and will
continue to be interrupted on account of a medical
condition and that he expects to repay the loan by
liquidating assets, the creditor may, but is not
required to, evaluate the application using the sale of
assets as the primary source of repayment, consistent
with safe and sound practices, provided that the
creditor documents the consumer's request by recording
the oral conversation or making a notation of the
request in the consumer's file.
(iii) If a consumer applies for a loan and the
application form provides a space where the consumer may
provide any other information or special circumstances,
whether medical or non-medical, that the consumer would
like the creditor to consider in evaluating the
consumer's application, the creditor may use medical
information provided by the consumer in that space on
that application to accommodate the consumer's
application for credit, consistent with safe and sound
practices, or may disregard that information.
(iv) If a consumer specifically requests that the
creditor use medical information in determining the
consumer's eligibility, or continued eligibility, for
credit and provides the creditor with medical
information for that purpose, and the creditor
determines that it needs additional information
regarding the consumer's circumstances, the creditor may
request, obtain, and use additional medical information
about the consumer as necessary to verify the
information provided by the consumer or to determine
whether to make an accommodation for the consumer. The
consumer may decline to provide additional information,
{{12-31-07 p.2414.15}}withdraw the request for an
accommodation, and have the application considered under
the creditor's otherwise applicable underwriting
criteria.
(v) If a consumer completes and signs a credit
application that is not for medical purpose credit and
the application contains boilerplate language that
routinely requests medical information from the consumer
or that indicates that by applying for credit the
consumer authorizes or consents to the creditor
obtaining and using medical information in connection
with a determination of the consumer's eligibility, or
continued eligibility, for credit, the consumer has not
specifically requested that the creditor obtain and use
medical information to accommodate the consumer's
particular circumstances.
(5) Example of a forbearance practice or
program. After an appropriate safety and soundness
review, a creditor institutes a program that allows
consumers who are or will be hospitalized to defer
payments as needed for up to three months, without
penalty, if the credit account has been open for more
than one year and has not previously been in default,
and the consumer provides confirming documentation at an
appropriate time. A consumer is hospitalized and does
not pay her bill for a particular month. This consumer
has had a credit account with the creditor for more than
one year and has not previously been in default. The
creditor attempts to contact the consumer and speaks
with the consumer's adult child, who is not the
consumer's legal representative. The adult child informs
the creditor that the consumer is hospitalized and is
unable to pay the bill at that time. The creditor defers
payments for up to three months, without penalty, for
the hospitalized consumer and sends the consumer a
letter confirming this practice and the date on which
the next payment will be due.
[Codified to 12 C.F.R. § 334.30]
§ 334.31 Limits on redisclosure of information.
(a) Scope. This section applies to State banks
insured by the FDIC (other than members of the Federal
Reserve System) and insured State branches of foreign
banks.
(b) Limits on redisclosure. If a person
described in paragraph (a) of this section receives
medical information about a consumer from a consumer
reporting agency or its affiliate, the person must not
disclose that information to any other person, except as
necessary to carry out the purpose for which the
information was initially disclosed, or as otherwise
permitted by statute, regulation, or order.
[Codified to 12 C.F.R. § 334.31]
§ 334.32 Sharing medical information with
affiliates.
(a) Scope. This section applies to State banks
insured by the FDIC (other than members of the Federal
Reserve System) and insured State branches of foreign
banks.
(b) In general. The exclusions from the term
"consumer report" in
section 603(d)(2) of the Act that allow the sharing
of information with affiliates do not apply if a person
described in paragraph (a) of this section communicates
to an affiliate--
(1) Medical information;
(2) An individualized list or description based on
the payment transactions of the consumer for medical
products or services; or
(3) An aggregate list of identified consumers based
on payment transactions for medical products or
services.
(c) Exceptions. A person described in
paragraph (a) of this section may rely on the exclusions
from the term "consumer report" in section 603(d)(2) of
the Act to communicate the information in paragraph (b)
of this section to an affiliate--
(1) In connection with the business of insurance or
annuities (including the activities described in section
18B of the model Privacy of Consumer Financial and
Health Information Regulation issued by the National
Association of Insurance Commissioners, as in effect on
January 1, 2003);
{{12-31-07 p.2414.16}}
(2) For any purpose permitted without authorization
under the regulations promulgated by the Department of
Health and Human Services pursuant to the Health
Insurance Portability and Accountability Act of 1996 (HIPAA);
(3) For any purpose referred to in section 1179 of
HIPAA;
(4) For any purpose described in section 502(e) of
the Gramm-Leach-Bliley Act;
(5) In connection with a determination of the
consumer's eligibility, or continued eligibility, for
credit consistent with § 334.30; or
(6) As otherwise permitted by order of the FDIC.
[Codified to 12 C.F.R. § 334.32]
Subpart E–H—[Reserved]
Subpart I—Duties of Users of Consumer Reports
Regarding Identity Theft
§ 334.80–334.81 [Reserved]
{hang}§ 334.82 Duties of users regarding address
discrepancies.
(a) Scope. This section applies to a user of
consumer reports (user) that receives a notice of
address discrepancy from a consumer reporting agency and
that is an insured state nonmember bank, insured state
licensed branch of a foreign bank, or a subsidiary of
such entities (except brokers, dealers, persons
providing insurance, investment companies, and
investment advisers).
(b) Definition. For purposes of this section,
a notice of address discrepancy means a notice
sent to a user by a consumer reporting agency pursuant
to 15 U.S.C. 1681c(h)(1), that informs the user of a
substantial difference between the address for the
consumer that the user provided to request the consumer
report and the address(es) in the agency's file for the
consumer.
(c) Reasonable belief. (1) Requirement to
form a reasonable belief. A user must develop and
implement reasonable policies and procedures designed to
enable the user to form a reasonable belief that a
consumer report relates to the consumer about whom it
has requested the report, when the user receives a
notice of address discrepancy.
(2) Examples of reasonable policies and
procedures. (i) Comparing the information in the
consumer report provided by the consumer reporting
agency with information the user:
(A) Obtains and uses to verify the consumer's
identity in accordance with the requirements of the
Customer Information Program (CIP) rules implementing 31
U.S.C. 5318(l) (31 CFR 103.121);
(B) Maintains in its own records, such as
applications, change of address notifications, other
customer account records, or retained CIP documentation;
or
(C) Obtains from third-party sources; or
(ii) Verifying the information in the consumer
report provided by the consumer reporting agency with
the consumer.
(d) Consumer's address. (1) Requirement
to furnish consumer's address to a consumer reporting
agency. A user must develop and implement reasonable
policies and procedures for furnishing an address for
the consumer that the user has reasonably confirmed is
accurate to the consumer reporting agency from whom it
received the notice of address discrepancy when the
user:
(i) Can form a reasonable belief that the
consumer report relates to the consumer about whom the
user requested the report;
(ii) Establishes a continuing relationship with
the consumer; and
(iii) Regularly and in the ordinary course of
business furnishes information to the consumer reporting
agency from which the notice of address discrepancy
relating to the consumer was obtained.
(2) Examples of confirmation methods. The
user may reasonably confirm an address is accurate by:
{{12-31-07 p.2414.17}}
(i) Verifying the address with the consumer about
whom it has requested the report;
(ii) Reviewing its own records to verify the
address of the consumer;
(iii) Verifying the address through third-party
sources; or
(iv) Using other reasonable means.
(3) Timing. The policies and procedures
developed in accordance with paragraph (d)(1) of this
section must provide that the user will furnish the
consumer's address that the user has reasonably
confirmed is accurate to the consumer reporting agency
as part of the information it regularly furnishes for
the reporting period in which it establishes a
relationship with the consumer.
[Codified to 12 C.F.R. § 334.82]
[Section 334.82 added at 72 Fed. Reg. 63760, November
9, 2007, effective January 1, 2008, the mandatory
compliance date is November 1, 2008]
§ 334.83 Disposal of consumer information.
(a) In general. You must properly dispose of
any consumer information that you maintain or otherwise
possess in accordance with the
Interagency Guidelines Establishing Information Security
Standards, as set forth in appendix B to part 364 of
this chapter, prescribed pursuant to section 216 of the
Fair and Accurate Credit Transactions Act of 2003 (15
U.S.C. 1681w) and section 501(b) of the Gramm-Leach-Bliley
Act (15 U.S.C. 6801(b)), to the extent the Guidelines
are applicable to you.
(b) Rule of construction. Nothing in this
section shall be construed to:
(1) Require you to maintain or destroy any record
pertaining to a consumer that is not imposed under any
other law; or
(2) Alter or affect any requirement imposed under
any other provision of law to maintain or destroy such a
record.
[Codified to 12 C.F.R. § 334.83]
Subpart J—Identity Theft Red Flags
§ 334.90 Duties regarding the detection, prevention,
and mitigation of identity theft.
(a) Scope. This section applies to a financial
institution or creditor that is an insured state
nonmember bank, insured state licensed branch of a
foreign bank, or a subsidiary of such entities (except
brokers, dealers, persons providing insurance,
investment companies, and investment advisers).
(b) Definitions. For purposes of this section
and Appendix J, the following definitions apply:
(1) Account means a continuing relationship
established by a person with a financial institution or
creditor to obtain a product or service for personal,
family, household or business purposes. Account
includes:
(i) An extension of credit, such as the purchase
of property or services involving a deferred payment;
and
(ii) A deposit account.
(2) The term board of directors includes:
(i) In the case of a branch or agency of a
foreign bank, the managing official in charge of the
branch or agency; and
(ii) In the case of any other creditor that does
not have a board of directors, a designated employee at
the level of senior management.
(3) Covered account means:
(i) An account that a financial institution or
creditor offers or maintains, primarily for personal,
family, or household purposes, that involves or is
designed to permit multiple
{{12-31-07 p.2414.18}}payments or transactions,
such as a credit card account, mortgage loan, automobile
loan, margin account, cell phone account, utility
account, checking account, or savings account; and
(ii) Any other account that the financial
institution or creditor offers or maintains for which
there is a reasonably foreseeable risk to customers or
to the safety and soundness of the financial institution
or creditor from identity theft, including financial,
operational, compliance, reputation, or litigation
risks.
(4) Credit has the same meaning as in 15
U.S.C. 1681a(r)(5).
(5) Creditor has the same meaning as in 15
U.S.C. 1681a(r)(5), and includes lenders such as banks,
finance companies, automobile dealers, mortgage brokers,
utility companies, and telecommunications companies.
(6) Customer means a person that has a
covered account with a financial institution or
creditor.
(7) Financial institution has the same
meaning as in 15 U.S.C. 1681a(t).
(8) Identity theft has the same meaning as
in 16 CFR 603.2(a).
(9) Red Flag means a pattern, practice, or
specific activity that indicates the possible existence
of identity theft.
(10) Service provider means a person that
provides a service directly to the financial institution
or creditor.
(c) Periodic Identification of Covered Accounts.
Each financial institution or creditor must
periodically determine whether it offers or maintains
covered accounts. As a part of this determination, a
financial institution or creditor must conduct a risk
assessment to determine whether it offers or maintains
covered accounts described in paragraph (b)(3)(ii) of
this section, taking into consideration:
(1) The methods it provides to open its accounts;
(2) The methods it provides to access its accounts;
and
(3) Its previous experiences with identity theft.
(d) Establishment of an Identity Theft Prevention
Program--(1) Program requirement. Each
financial institution or creditor that offers or
maintains one or more covered accounts must develop and
implement a written Identity Theft Prevention Program
(Program) that is designed to detect, prevent, and
mitigate identity theft in connection with the opening
of a covered account or any existing covered account.
The Program must be appropriate to the size and
complexity of the financial institution or creditor and
the nature and scope of its activities.
(2) Elements of the Program. The Program
must include reasonable policies and procedures to:
(i) Identify relevant Red Flags for the covered
accounts that the financial institution or creditor
offers or maintains, and incorporate those Red Flags
into its Program;
(ii) Detect Red Flags that have been incorporated
into the Program of the financial institution or
creditor;
(iii) Respond appropriately to any Red Flags that
are detected pursuant to paragraph (d)(2)(ii) of this
section to prevent and mitigate identity theft; and
(iv) Ensure the Program (including the Red Flags
determined to be relevant) is updated periodically, to
reflect changes in risks to customers and to the safety
and soundness of the financial institution or creditor
from identity theft.
(e) Administration of the Program. Each
financial institution or creditor that is required to
implement a Program must provide for the continued
administration of the Program and must:
(1) Obtain approval of the initial written Program
from either its board of directors or an appropriate
committee of the board of directors;
(2) Involve the board of directors, an appropriate
committee thereof, or a designated employee at the level
of senior management in the oversight, development,
implementation and administration of the Program;
(3) Train staff, as necessary, to effectively
implement the Program; and
(4) Exercise appropriate and effective oversight of
service provider arrangements.
{{12-31-07 p.2414.19}}
(f) Guidelines. Each financial institution or
creditor that is required to implement a Program must
consider the guidelines in Appendix J of this part and
include in its Program those guidelines that are
appropriate.
[Codified to 12 C.F.R. § 334.90]
[Section 334.90 added at 72 Fed. Reg. 63761, November
9, 2007, effective January 1, 2008, the mandatory
compliance date is November 1, 2008]
§ 334.91 Duties of card issuers regarding changes of
address.
(a) Scope. This section applies to an issuer
of a debit or credit card (card issuer) that is an
insured state nonmember bank, insured state licensed
branch of a foreign bank, or a subsidiary of such
entities (except brokers, dealers, persons providing
insurance, investment companies, and investment
advisers)
(b) Definitions. For purposes of this section:
(1) Cardholder means a consumer who has been
issued a credit or debit card.
(2) Clear and conspicuous means reasonably
understandable and designed to call attention to the
nature and significance of the information presented.
(c) Address validation requirements. A card
issuer must establish and implement reasonable policies
and procedures to assess the validity of a change of
address if it receives notification of a change of
address for a consumer's debit or credit card account
and, within a short period of time afterwards (during at
least the first 30 days after it receives such
notification), the card issuer receives a request for an
additional or replacement card for the same account.
Under these circumstances, the card issuer may not issue
an additional or replacement card, until, in accordance
with its reasonable policies and procedures and for the
purpose of assessing the validity of the change of
address, the card issuer:
(1)(i) Notifies the cardholder of the request:
(A) At the cardholder's former address; or
(B) By any other means of communication that
the card issuer and the cardholder have previously
agreed to use; and
(ii) Provides to the cardholder a reasonable
means of promptly reporting incorrect address changes;
or
(2) Otherwise assesses the validity of the change
of address in accordance with the policies and
procedures the card issuer has established pursuant to
§ 334.90 of this part.
(d) Alternative timing of address validation.
A card issuer may satisfy the requirements of paragraph
(c) of this section if it validates an address pursuant
to the methods in paragraph (c)(1) or (c)(2) of this
section when it receives an address change notification,
before it receives a request for an additional or
replacement card.
(e) Form of notice. Any written or electronic
notice that the card issuer provides under this
paragraph must be clear and conspicuous and provided
separately from its regular correspondence with the
cardholder.
[Codified to 12 C.F.R. § 334.91]
[Section 334.91 added at 72 Fed. Reg. 63761, November
9, 2007, effective January 1, 2008, the mandatory
compliance date is November 1, 2008]
Appendix A–B—[Reserved]
Appendix C To
Part 334--Model Forms for Opt-Out Notices
a. Although use of the model forms is not required,
use of the model forms in this Appendix (as applicable)
complies with the requirement in section 624 of the Act
for clear, conspicuous, and concise notices.
b. Certain changes may be made to the language or
format of the model forms without losing the protection
from liability afforded by use of the model forms. These
changes may not be so extensive as to affect the
substance, clarity, or meaningful sequence of the
{{12-31-07 p.2414.20}}language in the model
forms. Persons making such extensive revisions will lose
the safe harbor that this Appendix provides. Acceptable
changes include, for example:
1. Rearranging the order of the references to "your
income," "your account history," and "your credit
score."
2. Substituting other types of information for
"income," "account history," or "credit score" for
accuracy, such as "payment history," "credit history,"
"payroll status," or "claims history."
3. Substituting a clearer and more accurate
description of the affiliates providing or covered by
the notice for phrases such as "the [ABC] group of
companies," including without limitation a statement
that the entity providing the notice recently purchased
the consumer's account.
4. Substituting other types of affiliates covered by
the notice for "credit card," "insurance," or
"securities" affiliates.
5. Omitting items that are not accurate or
applicable. For example, if a person does not limit the
duration of the opt-out period, the notice may omit
information about the renewal notice.
6. Adding a statement informing consumers how much
time they have to opt out before shared eligibility
information may be used to make solicitations to them.
7. Adding a statement that the consumer may exercise
the right to opt out at any time.
8. Adding the following statement, if accurate; "If
you previously opted out, you do not need to do so
again."
9. Providing a place on the form for the consumer to
fill in identifying information, such as his or her name
and address:
C--1 Model Form for Initial Opt-out Notice
(Single-Affiliate Notice) C--2 Model Form for Initial
Opt-out Notice (Joint Notice) C--3 Model Form for
Renewal Notice (Single-Affiliate Notice) C--4 Model
Form for Renewal Notice (Joint Notice) C--5 Model Form
for Voluntary "No Marketing" Notice
C–1—Model Form for Initial Opt-out Notice
(Single-Affiliate Notice)—[Your Choice To Limit
Marketing]/[Marketing Opt-out]
• [Name of Affiliate] is providing this notice.
• [Optional: Federal law gives you the right to limit
some but not all marketing from our affiliates. Federal
law also requires us to give you this notice to tell you
about your choice to limit marketing from our
affiliates.]
• You may limit our affiliates in the [ABC] group of
companies, such as our [credit card, insurance, and
securities] affiliates, from marketing their products or
services to you based on your personal information that
we collect and share with them. This information
includes your [income], your [account history with us],
and your [credit score].
• Your choice to limit marketing offers from our
affiliates will apply [until you tell us to change your
choice]/[for x years from when you tell us your
choice]/[for at least 5 years from when you tell us your
choice]. [Include if the opt-out period expires.] Once
that period expires, you will receive a renewal notice
that will allow you to continue to limit marketing
offers from our affiliates for [another x years]/[at
least another 5 years].
• [Include, if applicable, in a subsequent notice,
including an annual notice, for consumers who may have
previously opted out.] If you have already made a choice
to limit marketing offers from our affiliates, you do
not need to act again until you receive the renewal
notice.
To limit marketing offers, contact us [include all
that apply]:
• By telephone: 1--877--###--####
• On the Web: www.---.com
• By mail: Check the box and complete the form below,
and send the form to:
[Company name] [Company address]
_______ Do not allow your affiliates to use my
personal information to market to me.
{{12-31-07 p.2414.21}}
C–2—Model Form for Initial Opt-out Notice (Joint
Notice)—[Your Choice To Limit Marketing]/[Marketing
Opt-out]
• The [ABC group of companies] is providing this
notice.
• [Optional: Federal law gives you the right to limit
some but not all marketing from the [ABC] companies.
Federal law also requires us to give you this notice to
tell you about your choice to limit marketing from the
[ABC] companies.]
• You may limit the [ABC] companies, such as the [ABC
credit card, insurance, and securities] affiliates, from
marketing their products or services to you based on
your personal information that they receive from other
[ABC] companies. This information includes your
[income], your [account history], and your [credit
score].
• Your choice to limit marketing offers from the
[ABC] companies will apply [until you tell us to change
your choice]/[for x years from when you tell us your
choice]/[for at least 5 years from when you tell us your
choice]. [Include if the opt-out period expires.] Once
that period expires, you will receive a renewal notice
that will allow you to continue to limit marketing
offers from the [ABC] companies for [another x
years]/[at least another 5 years].
• [Include, if applicable, in a subsequent notice,
including an annual notice, for consumers who may have
previously opted out.] If you have already made a choice
to limit marketing offers from the [ABC] companies, you
do not need to act again until you receive the renewal
notice.
To limit marketing offers, contact us [include all
that apply]:
• By telephone: 1--877--###--####
• On the Web: www.---.com
• By mail: Check the box and complete the form below,
and send the form to:
[Company name] [Company address]
_______ Do not allow any company [in the ABC group of
companies] to use my personal information to market to
me.
C–3—Model Form for Renewal Notice (Single-Affiliate
Notice)—[Renewing Your Choice To Limit
Marketing]/[Renewing Your Marketing Opt-out]
• [Name of Affiliate] is providing this notice.
• [Optional: Federal law gives you the right to limit
some but not all marketing from our affiliates. Federal
law also requires us to give you this notice to tell you
about your choice to limit marketing from our
affiliates.]
• You previously chose to limit our affiliates in the
[ABC] group of companies, such as our [credit card,
insurance, and securities] affiliates, from marketing
their products or services to you based on your personal
information that we share with them. This information
includes your [income], your [account history with us],
and your [credit score].
• Your choice has expired or is about to expire.
To renew your choice to limit marketing for [x] more
years, contact us [include all that apply]:
• By telephone: 1--877--###--####
• On the Web: www.---.com
• By mail: Check the box and complete the form below,
and send the form to:
[Company name] [Company address]
_______ Renew my choice to limit marketing for [x]
more years.
C–4—Model Form for Renewal Notice (Joint
Notice)—[Renewing Your Choice To Limit
Marketing]/[Renewing Your Marketing Opt-out]
• The [ABC group of companies] is providing this
notice.
• [Optional: Federal law gives you the right to limit
some but not all marketing from the [ABC] companies.
Federal law also requires us to give you this notice to
tell you about your choice to limit marketing from the
[ABC] companies.]
{{12-31-07 p.2414.22}}
• You previously chose to limit the [ABC] companies,
such as the [ABC credit card, insurance, and securities]
affiliates, from marketing their products or services to
you based on your personal information that they receive
from other ABC companies. This information includes your
[income], your [account history], and your [credit
score].
• Your choice has expired or is about to expire.
To renew your choice to limit marketing for [x] more
years, contact us [include all that apply];
• By telephone: 1--877--###--####
• On the Web: www.---.com
• By mail: Check the box and complete the form below,
and send the form to:
[Company name] [Company address]
_______ Renew my choice to limit marketing for [x]
more years.
C–5—Model Form for Voluntary ``No Marketing''
Notice—Your Choice To Stop Marketing
• [Name of Affiliate] is providing this notice.
• You may choose to stop all marketing from us and
our affiliates.
To stop all marketing, contact us [include all that
apply]:
• By telephone: 1--877--###--####
• On the Web: www.---.com
• By mail: Check the box and complete the form below,
and send the form to:
[Company name] [Company address]
_______ Do not market to me.
[Codified to 12 C.F.R. Part 334, Appendix C]
[Appendix C added at 72 Fed. Reg. 62971, November 7,
2007, effective January 1, 2008, the mandatory
compliance date is October 1, 2008]
Appendix D–I [Reserved]
Appendix J to Part 334Interagency Guidelines on
Identity Theft Detection, Prevention, and Mitigation
Section 334.90 of this part requires each financial
institution and creditor that offers or maintains one or
more covered accounts, as defined in § 334.90(b)(3) of
this part, to develop and provide for the continued
administration of a written Program to detect, prevent,
and mitigate identity theft in connection with the
opening of a covered account or any existing covered
account. These guidelines are intended to assist
financial institutions and creditors in the formulation
and maintenance of a Program that satisfies the
requirements of § 334.90 of this part.
I. The Program
In designing its Program, a financial institution or
creditor may incorporate, as appropriate, its existing
policies, procedures, and other arrangements that
control reasonably foreseeable risks to customers or to
the safety and soundness of the financial institution or
creditor from identity theft.
II. Identifying Relevant Red Flags
(a) Risk Factors. A financial institution or
creditor should consider the following factors in
identifying relevant Red Flags for covered accounts, as
appropriate:
(1) The types of covered accounts it offers or
maintains;
(2) The methods it provides to open its covered
accounts;
(3) The methods it provides to access its covered
accounts; and
(4) Its previous experiences with identity theft.
(b) Sources of Red Flags. Financial
institutions and creditors should incorporate relevant
Red Flags from sources such as:
(1) Incidents of identity theft that the financial
institution or creditor has experienced;
(2) Methods of identity theft that the financial
institution or creditor has identified that reflect
changes in identity theft risks; and
{{12-31-07 p.2414.23}}
(3) Applicable supervisory guidance.
(c) Categories of Red Flags. The Program
should include relevant Red Flags from the following
categories, as appropriate. Examples of Red Flags from
each of these categories are appended as Supplement A to
this Appendix J.
(1) Alerts, notifications, or other warnings
received from consumer reporting agencies or service
providers, such as fraud detection services;
(2) The presentation of suspicious documents;
(3) The presentation of suspicious personal
identifying information, such as a suspicious address
change;
(4) The unusual use of, or other suspicious
activity related to, a covered account; and
(5) Notice from customers, victims of identity
theft, law enforcement authorities, or other persons
regarding possible identity theft in connection with
covered accounts held by the financial institution or
creditor.
III. Detecting Red Flags.
The Program's policies and procedures should address
the detection of Red Flags in connection with the
opening of covered accounts and existing covered
accounts, such as by:
(a) Obtaining identifying information about, and
verifying the identity of, a person opening a covered
account, for example, using the policies and procedures
regarding identification and verification set forth in
the Customer Identification Program rules implementing
31 U.S.C. 5318(l)(31 CFR 103.121); and
(b) Authenticating customers, monitoring
transactions, and verifying the validity of change of
address requests, in the case of existing covered
accounts.
IV. Preventing and Mitigating Identity Theft.
The Program's policies and procedures should provide
for appropriate responses to the Red Flags the financial
institution or creditor has detected that are
commensurate with the degree of risk posed. In
determining an appropriate response, a financial
institution or creditor should consider aggravating
factors that may heighten the risk of identity theft,
such as a data security incident that results in
unauthorized access to a customer's account records held
by the financial institution, creditor, or third party,
or notice that a customer has provided information
related to a covered account held by the financial
institution or creditor to someone fraudulently claiming
to represent the financial institution or creditor or to
a fraudulent Web site. Appropriate responses may include
the following:
(a) Monitoring a covered account for evidence of
identity theft;
(b) Contacting the customer;
(c) Changing any passwords, security codes, or other
security devices that permit access to a covered
account;
(d) Reopening a covered account with a new account
number;
(e) Not opening a new covered account;
(f) Closing an existing covered account;
(g) Not attempting to collect on a covered account or
not selling a covered account to a debt collector;
(h) Notifying law enforcement; or
(i) Determining that no response is warranted under
the particular circumstances.
V. Updating the Program.
Financial institutions and creditors should update the
Program (including the Red Flags determined to be
relevant) periodically, to reflect changes in risks to
customers or to the safety and soundness of the
financial institution or creditor from identity theft,
based on factors such as:
(a) The experiences of the financial institution or
creditor with identity theft;
(b) Changes in methods of identity theft;
(c) Changes in methods to detect, prevent, and
mitigate identity theft;
(d) Changes in the types of accounts that the
financial institution or creditor offers or maintains;
and
(e) Changes in the business arrangements of the
financial institution or creditor, including mergers,
acquisitions, alliances, joint ventures, and service
provider arrangements.
{{12-31-07 p.2414.24}}
VI. Methods for Administering the Program
(a) Oversight of Program. Oversight by the
board of directors, an appropriate committee of the
board, or a designated employee at the level of senior
management should include:
(1) Assigning specific responsibility for the
Program's implementation;
(2) Reviewing reports prepared by staff regarding
compliance by the financial institution or creditor with
§ 334.90 of this part; and
(3) Approving material changes to the Program as
necessary to address changing identity theft risks.
(b) Reports. (1) In general. Staff of
the financial institution or creditor responsible for
development, implementation, and administration of its
Program should report to the board of directors, an
appropriate committee of the board, or a designated
employee at the level of senior management, at least
annually, on compliance by the financial institution or
creditor with § 334.90 of this part.
(2) Contents of report. The report should
address material matters related to the Program and
evaluate issues such as: the effectiveness of the
policies and procedures of the financial institution or
creditor in addressing the risk of identity theft in
connection with the opening of covered accounts and with
respect to existing covered accounts; service provider
arrangements; significant incidents involving identity
theft and management's response; and recommendations for
material changes to the Program.
(c) Oversight of service provider arrangements.
Whenever a financial institution or creditor engages
a service provider to perform an activity in connection
with one or more covered accounts the financial
institution or creditor should take steps to ensure that
the activity of the service provider is conducted in
accordance with reasonable policies and procedures
designed to detect, prevent, and mitigate the risk of
identity theft. For example, a financial institution or
creditor could require the service provider by contract
to have policies and procedures to detect relevant Red
Flags that may arise in the performance of the service
provider's activities, and either report the Red Flags
to the financial institution or creditor, or to take
appropriate steps to prevent or mitigate identity theft.
VII. Other Applicable Legal Requirements
Financial institutions and creditors should be mindful
of other related legal requirements that may be
applicable, such as:
(a) For financial institutions and creditors that are
subject to 31 U.S.C. 5318(g), filing a Suspicious
Activity Report in accordance with applicable law and
regulation;
(b) Implementing any requirements under 15 U.S.C.
1681c--1(h) regarding the circumstances under which
credit may be extended when the financial institution or
creditor detects a fraud or active duty alert;
(c) Implementing any requirements for furnishers of
information to consumer reporting agencies under 15
U.S.C. 1681s--2, for example, to correct or update
inaccurate or incomplete information, and to not report
information that the furnisher has reasonable cause to
believe is inaccurate; and
(d) Complying with the prohibitions in 15 U.S.C.
1681m on the sale, transfer, and placement for
collection of certain debts resulting from identity
theft.
Supplement A to Appendix J
In addition to incorporating Red Flags from the
sources recommended in section II.b of the Guidelines in
Appendix J of this part, each financial institution or
creditor may consider incorporating into its Program,
whether singly or in combination, Red Flags from the
following illustrative examples in connection with
covered accounts.
Alerts, Notifications or Warnings from a Consumer
Reporting Agency
1. A fraud or active duty alert is included with a
consumer report.
2. A consumer reporting agency provides a notice of
credit freeze in response to a request for a consumer
report.
3. A consumer reporting agency provides a notice of
address discrepancy, as defined in § 334.82(b) of this
part.
4. A consumer report indicates a pattern of activity
that is inconsistent with the history and usual pattern
of activity of an applicant or customer, such as:
{{12-31-07 p.2414.25}}
a. A recent and significant increase in the volume
of inquiries;
b. An unusual number of recently established credit
relationships;
c. A material change in the use of credit,
especially with respect to recently established credit
relationships; or
d. An account that was closed for cause or
identified for abuse of account privileges by a
financial institution or creditor.
Suspicious Documents
5. Documents provided for identification appear to
have been altered or forged.
6. The photograph or physical description on the
identification is not consistent with the appearance of
the applicant or customer presenting the identification.
7. Other information on the identification is not
consistent with information provided by the person
opening a new covered account or customer presenting the
identification.
8. Other information on the identification is not
consistent with readily accessible information that is
on file with the financial institution or creditor, such
as a signature card or a recent check.
9. An application appears to have been altered or
forged, or gives the appearance of having been destroyed
and reassembled.
Suspicious Personal Identifying Information
10. Personal identifying information provided is
inconsistent when compared against external information
sources used by the financial institution or creditor.
For example:
a. The address does not match any address in the
consumer report; or
b. The Social Security Number (SSN) has not been
issued, or is listed on the Social Security
Administration's Death Master File.
11. Personal identifying information provided by the
customer is not consistent with other personal
identifying information provided by the customer. For
example, there is a lack of correlation between the SSN
range and date of birth.
12. Personal identifying information provided is
associated with known fraudulent activity as indicated
by internal or third-party sources used by the financial
institution or creditor. For example:
a. The address on an application is the same as the
address provided on a fraudulent application; or
b. The phone number on an application is the same
as the number provided on a fraudulent application.
13. Personal identifying information provided is of a
type commonly associated with fraudulent activity as
indicated by internal or third-party sources used by the
financial institution or creditor. For example:
a. The address on an application is fictitious, a
mail drop, or a prison; or
b. The phone number is invalid, or is associated
with a pager or answering service.
14. The SSN provided is the same as that submitted by
other persons opening an account or other customers.
15. The address or telephone number provided is the
same as or similar to the account number or telephone
number submitted by an unusually large number of other
persons opening accounts or other customers.
16. The person opening the covered account or the
customer fails to provide all required personal
identifying information on an application or in response
to notification that the application is incomplete.
17. Personal identifying information provided is not
consistent with personal identifying information that is
on file with the financial institution or creditor.
18. For financial institutions and creditors that use
challenge questions, the person opening the covered
account or the customer cannot provide authenticating
information beyond that which generally would be
available from a wallet or consumer report.
Unusual Use of, or Suspicious Activity Related to,
the Covered Account
19. Shortly following the notice of a change of
address for a covered account, the institution or
creditor receives a request for a new, additional, or
replacement card or a cell phone, or for the addition of
authorized users on the account.
{{12-31-07 p.2414.26}}
20. A new revolving credit account is used in a
manner commonly associated with known patterns of fraud
patterns. For example:
a. The majority of available credit is used for
cash advances or merchandise that is easily convertible
to cash (e.g., electronics equipment or jewelry); or
b. The customer fails to make the first payment or
makes an initial payment but no subsequent payments.
21. A covered account is used in a manner that is not
consistent with established patterns of activity on the
account. There is, for example:
a. Nonpayment when there is no history of late or
missed payments;
b. A material increase in the use of available
credit;
c. A material change in purchasing or spending
patterns;
d. A material change in electronic fund transfer
patterns in connection with a deposit account; or
e. A material change in telephone call patterns in
connection with a cellular phone account.
22. A covered account that has been inactive for a
reasonably lengthy period of time is used (taking into
consideration the type of account, the expected pattern
of usage and other relevant factors).
23. Mail sent to the customer is returned repeatedly
as undeliverable although transactions continue to be
conducted in connection with the customer's covered
account.
24. The financial institution or creditor is notified
that the customer is not receiving paper account
statements.
25. The financial institution or creditor is notified
of unauthorized charges or transactions in connection
with a customer's covered account.
Notice From Customers, Victims of Identity Theft, Law
Enforcement Authorities, or Other Persons Regarding
Possible Identity Theft in Connection With Covered
Accounts Held by the Financial Institution or Creditor
26. The financial institution or creditor is notified
by a customer, a victim of identity theft, a law
enforcement authority, or any other person that it has
opened a fraudulent account for a person engaged in
identity theft.
[Codified to 12 C.F.R. Part 334, Appendix J]
[Appendix J added at 72 Fed. Reg. 63762, November 9,
2007, effective January 1, 2008, the mandatory
compliance date is November 1, 2008]
|
For more information please fill
out the form below or call us at 800-946-8168. We'll be in touch
within 1 business hour.
 We will
not share your information with anyone, ever.
|
This is in
acknowledgement of the exemplary service that
Processing Solutions has provided Primacy Relocation
over the past year. When we first signed up with
you, you promised us exceptional service and you
have consistently delivered above and beyond our
expectations. We needed a customized solution that
involves a lot of manual entry on your part and we
really appreciate the “above and beyond” service
that your company provides. Whenever I call and ask
for help you respond immediately. We couldn’t be
more pleased. It is always a pleasure to speak with
you. Usually when I have to call a vendor to either
ask for help or clarification it is in many ways
dreadful. This is NEVER the case with you. I
consider my decision to move our flood cert requests
to Processing Solutions one of the best decisions we
have ever made. Again, thank you for the exceptional
service.
Gayle Shackelford
Risk Control Manager
Primacy Relocation |
|
The first time you called I told
you I thought flood companies are lazy and why should I
switch from one lazy company to another. You told me you
were different but I’d heard it all before. After calling me
for a year I decided to give you a chance and we tested your
system for a week.
At first we sent the easy ones,
then on the last day of our test, one of my staff sent you
the most difficult one possible, it was very rural and we
only gave you a partial legal description. We also told you
we needed it back in less than thirty minutes. When you
called us 17 minutes later and told us it was complete we
were very impressed. In the past every other flood company
would have called for more information. Since that day
you’ve provided us with excellent service and thank you for
being so persistent.
Linda Marincel
Mortgage Department Manager
Royal CU |
|
Thanks for the superior service!
Cyndi Hardy
Sales Manager/Home Mortgage
Consultant
Wells Fargo Home Mortgage
-
Builder Division |
|
On behalf of the real estate staff I
wanted to thank you for taking such good care of us.
We really appreciate your quick responses to all our
needs.
Just the
other day one of our members disputed a flood zone
designation, and with her additional documentation
you resolved the situation for us almost instantly.
We appreciate your friendly and fast service.
Hemlata Patel
AVP, Lending
Pacific Service CU |
|
Thank you for the
excellent service. We really enjoy working with you
and your company. When you first called on me I was
skeptical but you kept persisting. After a year and
a half I realized that you wouldn’t be so persistent
unless your service really was that much better. We
decided to test your service and your systems and
found your claims to be true. What we are most
impressed with however, is your complete willingness
to be of service which is demonstrated by regular
calls to us to ensure that our needs are being met
and appreciating the opportunity to be of service to
MSGCU.
Susan Hamlett
Consumer Loan Manager
Michigan Schools and Government Credit Union
|
|
Thank you for taking
such good care of us here at Greater Nevada Mortgage
Services. Ingrid Maddox and I really
appreciate how quickly you respond to us with your
constant follow up and attention. We know that if
there is ever a problem you take care of us right
away, and this customer service helps us close our
loans faster. Thank you, and keep up the good work!
Ingrid Maddox
VP of Operations
Greater Nevada CU |
|
I would like to thank you
and Processing Solutions for the excellent service
you provide us. The fast and efficient delivery of
your products and services make me feel like I am
the most important customer you have. I will
continue to recommend your firm to anyone in need of
your services. Thank you so much and keep up the
good work!
Brian Sheehan
Loan Processor
Benchmark Mortgage |
|
We are very pleased with
your company. We have never had any problems with
any determinations. You are always prompt in turn
around time even on the difficult ones. Thanks.
Barb Cernohous
Assistant Vice President
River Falls State Bank |
|
I want you to know that I am extremely happy with
the service and I really appreciate your checking in
with me like you do. I had an issue where
flood insurance was required but I was trying to get
help with determining if I could get it reviewed
again and I was very satisfied with the help and
response I received.
Kelli Ingram
Vice President - Credit
Administraton
Bank of Atlanta |
|
Thanks for the quick help! It was pretty
impressive!
Ed
Reed
Assistant Vice President
American Bank of Missouri |
|
Thank you for excellent service. I appreciate all
you have done to make my job more streamlined.
Jackie Flores
Loan Officer
Elite Loan Pros |
|
We’re a small credit union and don’t send your
company a lot of business, but can tell that you
care about helping us. You promised good service
when we signed up with your company and you’ve gone
beyond our expectations. Thanks for all your
continuing help.
Karen
Meeks
Mortgage Loan Officer
Golden Bay Federal Credit Union |
|
I just wanted to
say thank you for the service level you have been
providing to
us.
Yesterday
I needed you to
follow up on a manual flood zone determination. I
emailed you and within, literally, minutes you
returned my call
and
shortly thereafter
your team had the certification emailed to me.
This is the
response to most anything we
have had a need to
call you about.
Linda Bradfield
Loan Processor
Tri- Counties Bank |
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I am so impressed with your response!
Susan M. Santerelli
Attorney at Law
Severson & Werson |
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I wanted to
take this time to send a note of thanks for all of the wonderful
work you do and the service you provide us. We are very
satisfied and quiet glad that we are now sending all of our
business your way. The response time is wonderful and we are
VERY happy with the cost. You, in particular, have always gone
just one step beyond the need and have helped me out so many
times without making me feel like a bother. Your complete
willingness to help and your, always friendly, attitude makes
such a difference; so much so that I would, without reservation,
recommend you to anyone needing this service!
Jane Slaughter
Loan Processor
Tri-Counties Bank |
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I just wanted to write a quick
note and thank you for the services you have been providing our
credit union. We have been so very impressed with the
level of service we receive from you and your company. I
have heard many promises made in my 20+ years of lending
experience, however, the service we have received from
Processing Solutions has exceeded our expectation levels and you
truly deliver what you promise.
John Garner
Vice President of Lending
3 Rivers FCU |
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