CFPB Proposes to Amend Regulation P

The Consumer Financial Protection Bureau (“CFPB”)is  proposing to amend Regulation P (12 CFR Part 1016) , which among other things requires that financial institutions provide an annual disclosure of their privacy policies to their customers. The amendment would create an alternative delivery method for this annual disclosure, which financial institutions would be able to use under certain circumstances.  CFPB Director Richard Cordray has said that the proposed rule “would make it easier for consumers to find and access privacy policies, while also making it cheaper for industry to provide disclosures.”

Currently the Gramm-Leach-Bliley Act (GLBA) requires that financial institutions deliver annual privacy notices to consumers individually. However, the proposed rule would allow financial institutions to simply post their annual privacy notices online, so long as they limit their customer data-sharing and satisfy other requirements such as not sharing data in a manner that would trigger a consumer’s opt-out rights.

On May 28th, the CFPB published a notice in the Federal Register extending the comment period for its proposed rule that would amend some of the privacy notice requirements imposed by the Gramm-Leach-Bliley Act (GLBA). The CFPB originally published the notice of proposed rulemaking in the Federal Register on May 13th. The CFPB is now extending the deadline for comments to be filed from June 12, 2014 to July 14, 2014.

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