PRIA, Government Policy, Made Personal

Summary

Gives plain meanings for key words used in these rules so people know how they are used. "Federal banking agency" means the same as in 12 U.S.C. 1813. "Federal functional regulator" names six agencies: the Board of Governors of the Federal Reserve, the Office of the Comptroller of the Currency, the FDIC Board, the Director of the Office of Thrift Supervision, the National Credit Union Administration Board, and the Securities and Exchange Commission. "Financial institution" generally means a business that does the financial activities listed in 12 U.S.C. 1843(k), but it does not include persons under the Commodity Futures Trading Commission (Commodity Exchange Act, 7 U.S.C. 1 et seq.), Farm Credit entities (including the Federal Agricultural Mortgage Corporation and those under the Farm Credit Act of 1971, 12 U.S.C. 2001 et seq.), or certain Congress-chartered secondary market institutions that do not sell nonpublic personal information as described in 6802(e)(1)(C). "Nonpublic personal information" is personally identifiable financial info given to, created by, or collected by the institution; it does not include publicly available information (as defined under regulations at 6804), but does include any list or grouping of consumers if that list was made using nonpublic personal information. "Nonaffiliated third party" means an entity that is not an affiliate or under common control with the financial institution (but not a joint employee). "Affiliate" means a company that controls, is controlled by, or is under common control with another. "As necessary to effect, administer, or enforce the transaction" covers disclosures that are required or are normal ways to carry out, manage, service, or enforce a transaction or product — for example confirmations and account records, incentives, enforcing rights, insurance underwriting and claims work, payment processing and transfers, or audits. "State insurance authority" is the insurance regulator of the state where an insurer is based. "Consumer" is an individual who gets financial products or services for personal, family, or household use, and their legal representative. "Joint agreement" is a written contract where two or more financial institutions jointly offer or sponsor a product (see regs under 6804). The "time of establishing a customer relationship" is set by regulations under 6804 and, for lenders who finance consumer purchases, means when the credit relationship is created.

Title 15, §6809

Commerce and Trade, Source: USLM XML via OLRC

As used in this subchapter:

(1)Federal banking agency

The term “Federal banking agency” has the same meaning as given in section 1813 of title 12.

(2)Federal functional regulator (3) Financial institution

The term “Federal functional regulator” means—

(A)the Board of Governors of the Federal Reserve System;

(B)the Office of the Comptroller of the Currency;

(C)the Board of Directors of the Federal Deposit Insurance Corporation;

(D)the Director of the Office of Thrift Supervision;

(E)the National Credit Union Administration Board; and

(F)the Securities and Exchange Commission.

(4)Nonpublic personal information

(A)The term “nonpublic personal information” means personally identifiable financial information—

(i)provided by a consumer to a financial institution;

(ii)resulting from any transaction with the consumer or any service performed for the consumer; or

(iii)otherwise obtained by the financial institution.

(B)Such term does not include publicly available information, as such term is defined by the regulations prescribed under section 6804 of this title.

(C)Notwithstanding subparagraph (B), such term—

(i)shall include any list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived using any nonpublic personal information other than publicly available information; but

(ii)shall not include any list, description, or other grouping of consumers (and publicly available information pertaining to them) that is derived without using any nonpublic personal information.

(5)Nonaffiliated third party

The term “nonaffiliated third party” means any entity that is not an affiliate of, or related by common ownership or affiliated by corporate control with, the financial institution, but does not include a joint employee of such institution.

(6)Affiliate

The term “affiliate” means any company that controls, is controlled by, or is under common control with another company.

(7)Necessary to effect, administer, or enforce

The term “as necessary to effect, administer, or enforce the transaction” means—

(A)the disclosure is required, or is a usual, appropriate, or acceptable method, to carry out the transaction or the product or service business of which the transaction is a part, and record or service or maintain the consumer’s account in the ordinary course of providing the financial service or financial product, or to administer or service benefits or claims relating to the transaction or the product or service business of which it is a part, and includes—

(i)providing the consumer or the consumer’s agent or broker with a confirmation, statement, or other record of the transaction, or information on the status or value of the financial service or financial product; and

(ii)the accrual or recognition of incentives or bonuses associated with the transaction that are provided by the financial institution or any other party;

(B)the disclosure is required, or is one of the lawful or appropriate methods, to enforce the rights of the financial institution or of other persons engaged in carrying out the financial transaction, or providing the product or service;

(C)the disclosure is required, or is a usual, appropriate, or acceptable method, for insurance underwriting at the consumer’s request or for reinsurance purposes, or for any of the following purposes as they relate to a consumer’s insurance: Account administration, reporting, investigating, or preventing fraud or material misrepresentation, processing premium payments, processing insurance claims, administering insurance benefits (including utilization review activities), participating in research projects, or as otherwise required or specifically permitted by Federal or State law; or

(D)the disclosure is required, or is a usual, appropriate or acceptable method, in connection with—

(i)the authorization, settlement, billing, processing, clearing, transferring, reconciling, or collection of amounts charged, debited, or otherwise paid using a debit, credit or other payment card, check, or account number, or by other payment means;

(ii)the transfer of receivables, accounts or interests therein; or

(iii)the audit of debit, credit or other payment information.

(8)State insurance authority

The term “State insurance authority” means, in the case of any person engaged in providing insurance, the State insurance authority of the State in which the person is domiciled.

(9)Consumer

The term “consumer” means an individual who obtains, from a financial institution, financial products or services which are to be used primarily for personal, family, or household purposes, and also means the legal representative of such an individual.

(10)Joint agreement

The term “joint agreement” means a formal written contract pursuant to which two or more financial institutions jointly offer, endorse, or sponsor a financial product or service, and as may be further defined in the regulations prescribed under section 6804 of this title.

(11)Customer relationship

The term “time of establishing a customer relationship” shall be defined by the regulations prescribed under section 6804 of this title, and shall, in the case of a financial institution engaged in extending credit directly to consumers to finance purchases of goods or services, mean the time of establishing the credit relationship with the consumer.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This subchapter, referred to in text, was in the original “this subtitle”, meaning subtitle A (§§ 501–510) of title V of Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1436, which is classified principally to this subchapter. For complete classification of subtitle A to the Code, see Tables. The Commodity Exchange Act, referred to in par. (3)(B), is act Sept. 21, 1922, ch. 369, 42 Stat. 998, which is classified generally to chapter 1 (§ 1 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 1 of Title 7 and Tables. The Farm Credit Act of 1971, referred to in par. (3)(C), is Pub. L. 92–181, Dec. 10, 1971, 85 Stat. 583, which is classified generally to chapter 23 (§ 2001 et seq.) of Title 12, Banks and Banking. For complete classification of this Act to the Code, see

Short Title

note set out under section 2001 of Title 12 and Tables.

§6809 Definitions