May 22, 2014

CFPB gives more comment time on privacy notices

May 22, 2014 – The CFPB on Wednesday announced it is extending the deadline for comments on its proposal to ease certain Gramm-Leach-Bliley Act privacy notice disclosure requirements from June 12 to July 14.

NAFCU welcomed this proposed rule. In line with the bureau's extension announced Wednesday, the association is pushing the deadline for members' input to the association's official comment to June 20.

The bureau's proposed rule, which originally had a comment deadline of June 12, would revise the regulation implementing the privacy policy disclosure requirement of the Gramm-Leach-Bliley Act.

The act generally requires financial institutions to send notices directly to consumers. However, CFPB is proposing to allow institutions to post privacy notices online instead of distributing an annual paper copy under certain conditions. This exception would apply, for example, if the institution does not share data in ways that would trigger consumers' rights to opt out of certain types of information sharing.

Institutions that choose to post notices online would be required to use the model disclosure form developed by federal regulatory agencies in 2009. They would also be required to notify consumers at least annually through another notice or disclosure that the privacy notice is online and available by mail upon request. See more in NAFCU Regulatory Alert 14-EA-10.