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
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.

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: Sept. 14

Uncategorized
September 14, 2026

News items that are the most recent sanctions-related actions from the Office of Foreign Assets Control.

ABA files coalition amicus brief arguing FDIC’s CMP against CBW Bank violates Jarkesy

Seventh Circuit upholds FDIC’s in-house enforcement process

Uncategorized
September 1, 2026

In a unanimous decision, a Seventh Circuit panel ruled that the FDIC did not violate the Seventh Amendment by adjudicating an enforcement action seeking a prohibition order and civil money penalty.

Fifth Circuit rules SEC must fix stock buyback rule

Tenth Circuit affirms dismissal of APA challenge to SEC enforcement action

Uncategorized
September 1, 2026

A unanimous Tenth Circuit panel affirmed the dismissal of a lawsuit challenging the SEC’s enforcement of federal anti-money laundering reporting requirements against an affiliate.

FDIC posts sample docs to provide clarity into marketing, sale process of failing banks

Second Circuit rules AP7 has prudential standing to pursue Signature Bank securities claims

Uncategorized
September 1, 2026

In a unanimous decision, a Second Circuit panel vacated a New York federal court decision ruling that Sjunde AP-Fonden (AP7) lacked prudential standing to pursue securities fraud claims against KPMG and former Signature Bank officers.

OCC releases Q3 bank trading revenue report

Nine states sue OCC over escrow powers and preemption rules

Uncategorized
September 1, 2026

Nine states sued the OCC, alleging it exceeded its authority and violated the APA by issuing its Escrow Powers and Preemption Rules.

Eastern District of Michigan dismisses $2 million wire fraud suit against Fifth Third Bank

Eastern District of Michigan dismisses $2 million wire fraud suit against Fifth Third Bank

Uncategorized
September 1, 2026

The court refused to hold Fifth Third Bank liable for the wire fraud because Hegira could not identify any agreed-upon security procedure that the bank handled in a commercially unreasonable manner or failed to follow in good faith.

NEWSBYTES

Banking agencies pledge more scrutiny of core provider business practices

September 11, 2026

Preliminary: Consumer sentiment decreased 3.9 points in September

September 11, 2026

ABA DataBank: The ‘she-conomy’ drives job growth

September 11, 2026

SPONSORED CONTENT

Banking Technology at a Strategic Crossroads

Banking Technology at a Strategic Crossroads

September 8, 2026
Taming AI Agent Sprawl: A Playbook for Consumer Lending

Taming AI Agent Sprawl: A Playbook for Consumer Lending

September 1, 2026
Grow Public Deposits Without the Operational Burden End Fragment

Grow Public Deposits Without the Operational Burden End Fragment

September 1, 2026
Could Your Bank Absorb the Hidden Cost of Running Legacy Systems?

Could Your Bank Absorb the Hidden Cost of Running Legacy Systems?

August 20, 2026

PODCASTS

Podcast: Remembering 9/11, a quarter century later

September 10, 2026

Podcast: Banking the brave new world of college athletics

August 4, 2026

Podcast: Tactics for meaningful strategic planning

July 28, 2026

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

© 2026 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

© 2026 American Bankers Association. All rights reserved.