12 CFR 716.5 - Annual privacy notice to members required.

§ 716.5 Annual privacy notice to members required.
(a)
(1) General rule. You must provide a clear and conspicuous notice to members that accurately reflects your privacy policies and practices not less than annually during the continuation of the member relationship. Annually means at least once in any period of 12 consecutive months during which that relationship exists. You may define the 12-consecutive-month period, but you must apply it to the member on a consistent basis.
(2) Example. You provide a notice annually if you define the 12-consecutive-month period as a calendar year and provide the annual notice to the member once in each calendar year following the calendar year in which you provide the initial notice. For example, if a member opens an account on any day of year one, you must provide an annual notice to that member by December 31 of year two.
(b)
(1) Termination of member relationship. You are not required to provide an annual notice to a former member.
(2) Examples. Your member becomes your former member when:
(i) An individual is no longer your member as defined in your bylaws;
(ii) In the case of a nonmember's share or share draft account, the account is inactive under the credit union's policies;
(iii) In the case of a nonmember's closed-end loan, the loan is paid in full, you charge off the loan, or you sell the loan without retaining servicing rights;
(iv) In the case of a credit card relationship or other open-end credit relationship with a nonmember, you no longer provide any statements or notices to the nonmember concerning that relationship or you sell the credit card receivables without retaining servicing rights; or
(v) You have not communicated with the nonmember about the relationship for a period of twelve consecutive months, other than to provide annual privacy notices or promotional material.
(c) Delivery. When you are required to deliver an annual privacy notice by this section, you must deliver it according to the methods in § 716.9.

Title 12 published on 2014-01-01

no entries appear in the Federal Register after this date.

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