To Share or Not to Share: Understanding Your Consumer Financial Privacy Rights

Did you know that your credit union may be sharing your nonpublic personal information so it can process your transactions and maintain your accounts? Nonpublic personal information is any personally identifiable financial information such as your social security number, address, account numbers, account balance information, payment history, overdraft history, credit union membership, information collected about you through a Web server collection device frequently referred to as a “cookie”, and more that a credit union or other financial institution collects from you to provide you a product or service.

What Law Governs the Credit Union’s Sharing Practices?

The Gramm-Leach-Bliley Act (GLBA), implemented by Regulation P, prohibits a credit union’s disclosure of nonpublic personal information to nonaffiliated third parties (someone who is not the credit union’s affiliate) unless the credit union successfully receives your opt out notice to share your information.

The GLBA also requires credit unions to share privacy policies and practices in its Initial Privacy and Annual Privacy Notices to members. Credit unions must provide you with its Annual Privacy Notice every year.

Here is a breakdown of what you can and cannot opt out of regarding your credit union’s sharing of your nonpublic personal information.

What Your Credit Union Cannot Share

• You have a right to opt out of, or prevent, your credit union from sharing your nonpublic personal information to a nonaffiliated third party unless there is an exception noted in your opt out notice.
• Read your initial or annual privacy notices carefully, so you can make the right decision about which information you wish to opt out of.

What Your Credit Union Can Share

• The credit union can share your nonpublic personal information with a nonaffiliated third party who provides a service or function to conduct a transaction you requested or authorized such as sharing your loan, share, or deposit accounts to the credit bureaus such as late or missed payments.
• The credit union also does not need your permission to share your nonpublic personal information when protecting against or preventing actual or potential fraud or when the credit union must comply with applicable legal requirements, such as disclosing members’ information to its regulators.

If you have privacy questions, ask your credit union about its sharing practices. You can also contact NCUA’s Consumer Assistance Center or call 855-755-1030 for further guidance.