ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Uncategorized

Compliance question of the month: April 2025

Opting out of information sharing under Regulations P and V—is the timing the same?

April 21, 2025
Reading Time: 2 mins read
Compliance question of the month: February 2025

My bank has a question regarding our privacy notice and affiliate sharing. The bank’s privacy notice states that it shares customer information both with nonaffiliated third parties and with our affiliates for marketing purposes and that customers may opt out of having this information shared. The bank gives consumers 30 days to opt out before it begins sharing.

Q However, looking at Regulation V (Fair Credit Reporting Act or FCRA) §1022.24(b)(3)-(4), it appears that the bank does not have to wait 30 days if it presents the privacy notice to customers at the time of an online account opening or in person. Am I interpreting this portion correctly?

A Not quite. Though not explicit, it appears the regulation considers that, for accounts opened online or in person, 30 days is a “reasonable time to opt out.”

The examples in Regulation V’s §1022.24(b)(3) and (b)(4) that you cite indicate that requiring the consumer to decide to opt out before completing the opt-out notice electronically or in-person is a “reasonable opportunity to opt out” for “transactions.” Specifically, §1022.24(b)(3) provides, “The consumer is required to decide, as a necessary part of proceeding with the transaction, whether to opt out before completing the transaction.” (emphasis added) Section 1022.24(b)(4) uses similar terminology for in-person “transactions.”

In contrast, §1022.24 (b)(2) provides that, in the situation where the consumer has “obtained a product or service” through a website, a reasonable opportunity to opt out is 30 days. (emphasis added) The difference in the terminology suggests the examples in §1022.24(b)(3) and (b)(4) do not anticipate an account opening situation but an isolated transaction.

Moreover, under §1022.24(b)(5), if the bank includes the Regulation V opt-out notice with the Gramm-Leach- Bliley Act privacy opt-out notice (Regulation P), it must allow consumers to opt out “within a reasonable period of time” and in the same manner as the opt-out under Regulation P. Regulation P states that, for opening an account online, allowing consumers 30 days after the date the consumer receives the opt-out notice is a “reasonable opportunity” to opt out. (§1016.10(a)(3)) Regulation P provides other examples similar to those of Regulation V. Notably, its example allowing consumers to opt out at the time of the “transaction” is limited to “isolated transactions” such as “the purchase of a cashier’s check.” (§1016.10(a)(3)(iii))

Bottom line—while it is not explicit, the use of different terms in Regulation V’s examples and its example of referencing the Regulation P opt-out notice suggests that consumers should have 30 days to opt out under Regulation V when they open an account.

For more information, contact ABA’s Leslie Callaway.
Please note that this section is not a substitute for professional legal advice.

ADVERTISEMENT
Tags: ComplianceFCRA
ShareTweetPin

Related Posts

ABA files coalition amicus brief supporting Huntington National Bank over scope of guaranty agreements

Ohio Supreme Court clarifies no duty to disclose ‘increased risk’ to sureties

Uncategorized
September 2, 2025

Supreme Court of Ohio reversed an Ohio appellate court decision that ruled a creditor has no duty to disclose facts that materially increase a surety’s risk.

Florida federal court holds False Claims Act qui tam provision is unconstitutional

ABA files amicus brief urging N.J. Supreme Court to uphold dismissal of False Claims Act lawsuit

Uncategorized
September 2, 2025

ABA filed a coalition amicus brief urging the New Jersey Supreme Court to uphold a lower court ruling that barred Edelweiss, a private investment fund, from bringing a qui tam suit based on publicly disclosed information.

ABA, trade groups file amicus brief supporting Bank of America in National Bank Act preemption lawsuit

North Carolina federal court trims Zelle fraud class action against BofA

Uncategorized
September 2, 2025

A North Carolina federal court partially sustained Bank of America’s objections to a magistrate judge’s recommendation allowing a proposed class action over alleged Zelle fraud to proceed, determining the lawsuit fails to plausibly plead claims under any state...

Fourth Circuit affirms denial of COVID loan relief for six-time modified loan  

Fourth Circuit affirms denial of COVID loan relief for six-time modified loan  

Uncategorized
September 2, 2025

Fourth Circuit panel affirmed the district court’s ruling that the SBA properly concluded PACEM’s $5 million loan was ineligible for COVID-19 debt relief under the CARES Act.

CFPB Sues Wells Fargo, JP Morgan, and Wells Fargo over alleged fraud on Zelle network

N.Y. attorney general sues Early Warning Services over Zelle fraud allegations

Uncategorized
September 2, 2025

CFPB previously sued Early Warning Services LLC over Zelle fraud allegations, but the new administration dropped the lawsuit. NYAG now similarly sues EWS over its Zelle protocols. 

Second Circuit affirms class certification in VRDO lawsuit

Second Circuit affirms class certification in VRDO lawsuit

Uncategorized
September 2, 2025

In a unanimous decision, a Second Circuit panel upheld a Southern District of New York order granting class certification to American cities and others accusing eight banks of inflating interest rates on VRDOs.

NEWSBYTES

Construction spending dropped slightly in July

September 2, 2025

ISM: Manufacturing sector contracted in August

September 2, 2025

Equity Bancshares to purchase Frontier Holdings in Nebraska

September 2, 2025

SPONSORED CONTENT

The Connectivity Dividend

September 1, 2025
Building Trust with Every Transaction

Building Trust with Every Transaction

September 1, 2025
10 Essentials of a New Loan Origination System

10 Essentials of a New Loan Origination System

August 29, 2025
Planning Your 2026 Budget? Allocate Resources to Support Growth and Retention Goals

Planning Your 2026 Budget? Allocate Resources to Support Growth and Retention Goals

August 1, 2025

PODCASTS

Demographic trends shaping the U.S. banking outlook

July 30, 2025

Podcast: How institutional banking helps build one regional bank’s strategy

July 24, 2025

The future of careers in risk and compliance

July 17, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.