Unlike Regulation P, North Dakota’s privacy laws do not require an “opt-out” form, but rather an “opt-in” form. According to N.D. Cent. Law § 6-08.1-03, “a financial institution may not disclose customer information to any person, governmental agency, or law enforcement agency unless the disclosure is made” in accordance with certain procedures, the first of which is that the customer must provide his consent, in accordance with Ibid. § 6-08.1-04, which states the following (in relevant part):
“A valid consent must be in writing and signed by the customer. In consenting to disclosure of customer information, a customer may specify any of the following:
- The time during which such consent will operate.
- The customer information to be disclosed.
- The person, governmental agencies, or law enforcement agencies to which disclosure may be made.”
A representative from the North Dakota Department of Financial Institutions has confirmed that the Federal “opt-out” form does not substantially comply with North Dakota’s requirements. Therefore, we will be modifying the North Dakota-version of Cx15182 as follows:
- In the “Other Important Information” section, the following text will print:
“North Dakota: In addition to opting-out of the sharing of information listed in this disclosure, North Dakota law (N.D. Cent. Code §§ 6-08.1-01 et seq.; N.D. Admin. Code §§ 13-02-21-01 et seq.) requires you to consent to, or ‘opt-in’ to, the sharing of such information.
To consent to the sharing of this information, please fill out, sign, and mail back the following form:”
- Following the “Other important information” section there will be a “Mail-in Form” which can be submitted by the borrower to the lender to “opt-in” to the sharing of certain information, the format and selections of which are as follows (as well as when they will check:
- Do use my personal information to market to me (when Field 48666 equals Yes);
- Do share my personal information with other financial institutions to jointly market to me (when Field 48663 equals Yes);
- Do share information about my transactions or experiences with your affiliates for their everyday business purposes (when Field 48661 equals Yes);
- Do share information about my creditworthiness with your affiliates for their everyday business purposes (when Field 48660 equals Yes);
- Do allow your affiliates to use my personal information to market to me (when Field 48662 equals Yes); and
- Do share my personal information with nonaffiliates to market their products and services to me (when Field 48664 equals Yes).
The form will contain a statement stating for how long the consumer’s consent is valid for (Field 60474). Following the borrower’s signature lines will be a section identifying the name and address of the borrower, plus the number of the loan the form is provided for. Following this is the address to which the borrower should mail the form.
Because a customer’s consent is required before a financial institution can share nonpublic personal information, and because a “customer” is defined, in part, as “any person that is a resident of or is domiciled in [North Dakota]”, the North Dakota-version of this form will print under any of the following conditions:
- “Property State” equals “North Dakota”;
- “Borrower Mailing Address: State” equals “North Dakota”; or
- “Borrower Present State” equals “North Dakota”
These changes will take effect on October 23, 2014. If you have any questions or concerns about these changes, please contact Client Support at 1.800.497.3584.
October 16, 2014