(a) Exceptions for processing transactions at consumer’s request. The requirements for initial notice in section 1016.4(a)(2), for
the opt-out in sections 1016.7 and 1016.10, and for service providers
and joint marketing in section 1016.13 do not apply if you disclose
nonpublic personal information as necessary to effect, administer,
or enforce a transaction that a consumer requests or authorizes, or
in connection with:
(1) Servicing or processing a financial
product or service that a consumer requests or authorizes;
(2) Maintaining or servicing
the consumer’s account with you, or with another entity as part of
a private label credit card program or other extension of credit on
behalf of such entity; or
(3) A proposed or actual securitization, secondary market sale (including
sales of servicing rights), or similar transaction related to a transaction
of the consumer.
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(b) Necessary
to effect, administer, or enforce a transaction means that the
disclosure is:
(1) Required, or is one of the lawful or
appropriate methods, to enforce your rights or the rights of other
persons engaged in carrying out the financial transaction or providing
the product or service; or
(2) Required, or is a usual, appropriate
or acceptable method:
(i) To carry out the transaction or
the product or service business of which the transaction is a part,
and record, service, or maintain the consumer’s account in the ordinary
course of providing the financial service or financial product;
(ii) To administer
or service benefits or claims relating to the transaction or the product
or service business of which it is a part;
(iii) To provide a confirmation, statement,
or other record of the transaction, or information on the status or
value of the financial service or financial product to the consumer
or the consumer’s agent or broker;
(iv) To accrue or recognize incentives
or bonuses associated with the transaction that are provided by you
or any other party;
(v) To underwrite insurance 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
(vi) In connection with:
(A) 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;
(B) The transfer of receivables,
accounts, or interests therein; or
(C) The audit of debit, credit, or other payment
information.
