[Code of Federal Regulations]
[Title 12 Volume 1]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR40.7]

[Page 366-367]
 
                       TITLE 12--BANKS AND BANKING
 
   CHAPTER I--COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY
 
PART 40--PRIVACY OF CONSUMER FINANCIAL INFORMATION--Table of Contents
 
                 Subpart A--Privacy and Opt Out Notices
 
Sec. 40.7  Form of opt out notice to consumers; opt out methods.

    (a) (1) Form of opt out notice. If a bank is required to provide an 
opt out notice under Sec. 40.10(a), it must provide a clear and 
conspicuous notice to each of its consumers that accurately explains the 
right to opt out under that section. The notice must state:
    (i) That the bank discloses or reserves the right to disclose 
nonpublic personal information about its consumer to a nonaffiliated 
third party;
    (ii) That the consumer has the right to opt out of that disclosure; 
and
    (iii) A reasonable means by which the consumer may exercise the opt 
out right.
    (2) Examples. (i) Adequate opt out notice. A bank provides adequate 
notice that the consumer can opt out of the disclosure of nonpublic 
personal information to a nonaffiliated third party if the bank:
    (A) Identifies all of the categories of nonpublic personal 
information that it discloses or reserves the right to disclose, and all 
of the categories of nonaffiliated third parties to which the bank 
discloses the information, as described in Sec. 40.6(a)(2) and (3), and 
states that the consumer can opt out of the disclosure of that 
information; and
    (B) Identifies the financial products or services that the consumer 
obtains from the bank, either singly or jointly, to which the opt out 
direction would apply.
    (ii) Reasonable opt out means. A bank provides a reasonable means to 
exercise an opt out right if it:
    (A) Designates check-off boxes in a prominent position on the 
relevant forms with the opt out notice;
    (B) Includes a reply form together with the opt out notice;
    (C) Provides an electronic means to opt out, such as a form that can 
be sent via electronic mail or a process at the bank's web site, if the 
consumer agrees to the electronic delivery of information; or
    (D) Provides a toll-free telephone number that consumers may call to 
opt out.
    (iii) Unreasonable opt out means. A bank does not provide a 
reasonable means of opting out if:
    (A) The only means of opting out is for the consumer to write his or 
her own letter to exercise that opt out right; or
    (B) The only means of opting out as described in any notice 
subsequent to the initial notice is to use a check-off box that the bank 
provided with the initial notice but did not include with the subsequent 
notice.
    (iv) Specific opt out means. A bank may require each consumer to opt 
out through a specific means, as long as that means is reasonable for 
that consumer.
    (b) Same form as initial notice permitted. A bank may provide the 
opt out notice together with or on the same written or electronic form 
as the initial notice the bank provides in accordance with Sec. 40.4.
    (c) Initial notice required when opt out notice delivered subsequent 
to initial notice. If a bank provides the opt out notice later than 
required for the initial notice in accordance with Sec. 40.4, the bank 
must also include a copy of the initial notice with the opt out notice 
in writing or, if the consumer agrees, electronically.
    (d) Joint relationships. (1) If two or more consumers jointly obtain 
a financial product or service from a bank, the bank may provide a 
single opt out notice. The bank's opt out notice must explain how the 
bank will treat an opt out direction by a joint consumer (as explained 
in paragraph (d)(5) of this section).

[[Page 367]]

    (2) Any of the joint consumers may exercise the right to opt out. 
The bank may either:
    (i) Treat an opt out direction by a joint consumer as applying to 
all of the associated joint consumers; or
    (ii) Permit each joint consumer to opt out separately.
    (3) If a bank permits each joint consumer to opt out separately, the 
bank must permit one of the joint consumers to opt out on behalf of all 
of the joint consumers.
    (4) A bank may not require all joint consumers to opt out before it 
implements any opt out direction.
    (5) Example. If John and Mary have a joint checking account with a 
bank and arranges for the bank to send statements to John's address, the 
bank may do any of the following, but it must explain in its opt out 
notice which opt out policy the bank will follow:
    (i) Send a single opt out notice to John's address, but the bank 
must accept an opt out direction from either John or Mary.
    (ii) Treat an opt out direction by either John or Mary as applying 
to the entire account. If the bank does so and John opts out, the bank 
may not require Mary to opt out as well before implementing John's opt 
out direction.
    (iii) Permit John and Mary to make different opt out directions. If 
the bank does so:
    (A) It must permit John and Mary to opt out for each other;
    (B) If both opt out, the bank must permit both of them to notify it 
in a single response (such as on a form or through a telephone call); 
and
    (C) If John opts out and Mary does not, the bank may only disclose 
nonpublic personal information about Mary, but not about John and not 
about John and Mary jointly.
    (e) Time to comply with opt out. A bank must comply with a 
consumer's opt out direction as soon as reasonably practicable after the 
bank receives it.
    (f) Continuing right to opt out. A consumer may exercise the right 
to opt out at any time.
    (g) Duration of consumer's opt out direction. (1) A consumer's 
direction to opt out under this section is effective until the consumer 
revokes it in writing or, if the consumer agrees, electronically.
    (2) When a customer relationship terminates, the customer's opt out 
direction continues to apply to the nonpublic personal information that 
the bank collected during or related to that relationship. If the 
individual subsequently establishes a new customer relationship with the 
bank, the opt out direction that applied to the former relationship does 
not apply to the new relationship.
    (h) Delivery. When a bank is required to deliver an opt out notice 
by this section, the bank must deliver it according to Sec. 40.9.