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

Recent news from Treasury’s Office of Foreign Assets Control: April 5

Recent news from Treasury’s Office of Foreign Assets Control: May 5

Uncategorized
May 5, 2025

The Office of Foreign Assets Control announced the following sanctions action last week.

Fourth Circuit rules 1st Advantage Federal Credit Union not liable for fraudulent transfer

Fourth Circuit rules 1st Advantage Federal Credit Union not liable for fraudulent transfer

Uncategorized
May 1, 2025

In a 3-0 decision, a Fourth Circuit panel ruled that financial institutions are not liable for fund transfers where the beneficiary name and account number do not match, unless the institution knew the mismatch at the time of...

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

Bank of America to pay FDIC $540M for allegedly underpaid premiums

Uncategorized
May 1, 2025

A Washington D.C. federal court granted the FDIC partial summary judgment, ruling that Bank of America must pay $540 million for allegedly underpaying its quarterly premiums from 2013 to 2014.

Fifth Circuit grants ABA mandamus, vacates transfer order for second time

D.C. Circuit panel modifies its partial stay, bars CFPB mass layoffs

Uncategorized
May 1, 2025

Following the evidentiary hearing, the court will determine whether the CFPB violated the preliminary injunction. In the meantime, the bureau is barred from carrying out its RIF.

Treasury names FinCEN director

Flowers Title Companies sues FinCEN over reporting rule

Uncategorized
May 1, 2025

Flowers seeks a declaratory judgment, holding the reporting rule unconstitutional and setting it aside. Additionally, Flowers requests an injunction prohibiting FinCEN from enforcing the reporting rule.

ABA files amicus brief urging Georgia Supreme Court to reaffirm overdraft fees are not interest

ABA files amicus brief urging Georgia Supreme Court to reaffirm overdraft fees are not interest

Uncategorized
May 1, 2025

ABA filed an amicus brief urging the Georgia Supreme Court to reverse a Georgia Court of Appeals decision that ruled overdraft fees are subject to Georgia usury laws.

NEWSBYTES

Federal budget reconciliation tax package includes ACRE Act, other ABA priorities

May 12, 2025

Report: Republicans push back against proposed cuts to CDFI Fund

May 12, 2025

ABA, associations: Proposed tax bill will help U.S. companies with foreign rivals

May 12, 2025

SPONSORED CONTENT

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025
AI for Banks: A Starter Guide for Community and Regional Institutions

AI for Banks: A Starter Guide for Community and Regional Institutions

March 1, 2025

PODCASTS

Podcast: Accelerating banking for quick-service restaurants

May 8, 2025

How a Georgia community bank supports government-guaranteed lending nationwide

May 1, 2025

Podcast: Quantum computing’s shakeup in payments, cybersecurity

April 24, 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.