(a) Scope of opt-out.
(1) In general. Except as otherwise provided in this section, the consumer’s election
to opt out prohibits any affiliate covered by the opt-out notice from
using eligibility information received from another affiliate as described
in the notice to make solicitations to the consumer.
(2) Continuing
relationship.
(i) In general. If the consumer establishes a continuing relationship with you or
your affiliate, an opt-out notice may apply to eligibility information
obtained in connection with:
(A) A single continuing relationship
or multiple continuing relationships that the consumer establishes
with you or your affiliates, including continuing relationships established
subsequent to delivery of the opt-out notice, so long as the notice
adequately describes the continuing relationships covered by the opt-out;
or
(B) Any other transaction
between the consumer and you or your affiliates as described in the
notice.
(ii) Examples of continuing relationships. A consumer has a continuing relationship with you or your affiliate
if the consumer:
(A) Opens a deposit or investment account
with you or your affiliate;
(B) Obtains a loan for which you or your affiliate owns the servicing
rights;
(C) Purchases an
insurance product from you or your affiliate;
(D) Holds an investment product through you
or your affiliate, such as when you act or your affiliate acts as
a custodian for securities or for assets in an individual retirement
arrangement;
(E) Enters
into an agreement or understanding with you or your affiliate whereby
you or your affiliate undertakes to arrange or broker a home mortgage
loan for the consumer;
(F) Enters into a lease of personal property with you or your affiliate;
or
(G) Obtains financial,
investment, or economic advisory services from you or your affiliate
for a fee.
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(3) No continuing
relationship.
(i) In general. If there is no continuing relationship between a consumer and you
or your affiliate, and you or your affiliate obtain eligibility information
about a consumer in connection with a transaction with the consumer,
such as an isolated transaction or a credit application that is denied,
an opt-out notice provided to the consumer only applies to eligibility
information obtained in connection with that transaction.
(ii) Examples of isolated transactions. An isolated
transaction occurs if:
(A) The consumer uses your or your affiliate’s
ATM to withdraw cash from an account at another financial institution;
or
(B) You or your affiliate
sells the consumer a cashier’s check or money order, airline tickets,
travel insurance, or traveler’s checks in isolated transactions.
(4) Menu of alternatives. A consumer
may be given the opportunity to choose from a menu of alternatives
when electing to prohibit solicitations, such as by electing to prohibit
solicitations from certain types of affiliates covered by the opt-out
notice but not other types of affiliates covered by the notice, electing
to prohibit solicitations based on certain types of eligibility information
but not other types of eligibility information, or electing to prohibit
solicitations by certain methods of delivery but not other methods
of delivery. However, one of the alternatives must allow the consumer
to prohibit all solicitations from all of the affiliates that are
covered by the notice.
(5) Special rule for a notice following
termination of all continuing relationships.
(i) In general. A consumer must be given a
new opt-out notice if, after all continuing relationships with you
or your affiliate(s) are terminated, the consumer subsequently establishes
another continuing relationship with you or your affiliate(s) and
the consumer’s eligibility information is to be used to make a solicitation.
The new opt-out notice must apply, at a minimum, to eligibility information
obtained in connection with the new continuing relationship. Consistent
with paragraph (b) of this section, the consumer’s decision not to
opt out after receiving the new opt-out notice would not override
a prior opt-out election by the consumer that applies to eligibility
information obtained in connection with a terminated relationship,
regardless of whether the new opt-out notice applies to eligibility
information obtained in connection with the terminated relationship.
(ii) Example. A consumer has a checking account
with a financial institution that is part of an affiliated group.
The consumer closes the checking account. One year after closing the
checking account, the consumer opens a savings account with the same
financial institution. The consumer must be given a new notice and
opportunity to opt out before the financial institution’s affiliates
may make solicitations to the consumer using eligibility information
obtained by the financial institution in connection with the new savings
account relationship, regardless of whether the consumer opted out
in connection with the checking account.
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(b) Duration of opt-out. The election of a consumer to opt out must be effective for a period
of at least five years (the “opt-out period”) beginning when the consumer’s
opt-out election is received and implemented, unless the consumer
subsequently revokes the opt-out in writing or, if the consumer agrees,
electronically. An opt-out period of more than five years may be established,
including an opt-out period that does not expire unless revoked by
the consumer.
(c) Time
of opt-out. A consumer may opt out at any time.
