A mortgage company's annual privacy notice includes an opt-out mechanism for information sharing. Three years later, a customer who previously opted out contacts the company wanting to opt back in to receive marketing offers. Under GLBA, the company:
Correct Answer
C) May allow the customer to opt back in at any time
Under GLBA, while customers must be given the opportunity to opt out of information sharing, they are generally free to reverse that decision and opt back in at any time. Financial institutions may establish reasonable procedures for customers to change their privacy preferences, but there's no prohibition on allowing customers to receive marketing again.
Why This Is the Correct Answer
Under GLBA, while customers must be given the opportunity to opt out of information sharing, they are generally free to reverse that decision and opt back in at any time. Financial institutions may establish reasonable procedures for customers to change their privacy preferences, but there's no prohibition on allowing customers to receive marketing again.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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