Privacy Laws

Violations of GLB may result in $100,000 for each violation to the?

Financial institutions

Telephone Consumer Protection Act (TCPA) restricts the making of telemarketing calls and the use of automatic telephone dialing systems and artificial or prerecorded voice messages. Includes the requirement that entities making telephone solicitations institute procedures for?

Maintaining company-specific do-not-call-lists

If a company decided to share info at a later date after the initial disclosure was sent saying that you don't share, you must?

Send a revised notice and give them an opportunity to "opt out"

MARS providers are required to retain contracts/agreements, copies of all written communication, all documents and phone recordings, all consumer files, copies of sale scripts/marketing materials, copies of upfront disclosures provide to client from the date records are produced fo a period of?

24 months

The following records must be maintained for 2 years from the date that relate to their telemarketing activities?

Advertising and promotional materials, information about prize materials, sales records, employee records, all verifiable authorizations or records of express informed consent or express agreement

FTC disposal rule, do not throw a client's information in the trash can! You must?

Burn it, shred it, pulverize it, if its electronic you must make it unreadable, all must not be able to be reconstructed

The telemarketer may be subject to a fine of up to?

$16,000 for calling someone on the do not call registry

Once ID'd you must determine if your client is on a known terrorist list. Failure to comply is a?

$1M fine

Accordingly, each company must develop a written security program that is?

1. Appropriate to its size and complexity 2. Appropriate to the nature and scope of its activities 3. Appropriate to the sensitivity of the consumer information involved

2 exceptions for the Established Business Relationship Rule?

1.) 90 day exemption after any inquiry or application is taken 2.) 18 months from any purchase or transaction

Both large and small businesses must honor do-not-call requests within?

30 days from the date such a request is made. This includes internal do-not call lists from consumers seeking to be taken off a specific companies call list

Violations of GLB may result in criminal penalties up to?

5 years

Once ID'd you must determine if your client is on a known terrorist list. You must keep your records for?

5 years after the principal has been paid off

Telemarketing calls can only be made between?

8am and 9pm in the time zone of the consumer being called

Mortgage Assistance Relief Service (MARS) is any relief service offered to the consumer in exchange for consideration, that assists the consumer with? A) All of the bellow B) Negotiating an extension on when a consumer may: cure their default on a dwelling, reinstate their dwelling loan, redeem a dwelling C) Obtaining any waiver of an acceleration clause or ballon payment D) Negotiating, obtaining or arranging: a short sale of a dwelling, deed-in-lieu of foreclosure, any other disposition of a dwelling other than a sale to a third party who is not the dwelling loan holder

A

Define customers?

A "customer" is a consumer who has a "customer relationship" with a financial institution. A "customer relationship" is a continuing relationship with a consumer

Definition of a consumer?

An individual who obtains or has obtained a financial product or service from a financial institution that is to be used primarily for personal, family, or household purposes, or that individual's legal representative

NPI is non-public personally identifiable financial information or?

Any list, description, or other grouping of consumers (and publicly available information pertaining to them) derived using any personally identifiable financial information that is not publicly available

Attorneys who provide MARS are exempt from advance fee collection as long as they?

Are licensed in the state the consumer resides in and deposit any funds from the consumer in a client trust account

Companies must update and synchronize their Internal Do Not Call records with the National Registry every? A) month B) 31 days C) year D) 90 days

B

The following would result in a violation of the final rule?

Charging a client prior to getting a signed written agreement between the consumer and their lender, telling a client not to contact their lender, misrepresenting the time it will take to provide services, Misrepresenting that the company is affiliated with their lender or government, misrepresenting that the consumer will receive legal representation, advertising specific savings or benefits or performance without providing proof of such

Main disclosure required under USA Patriot Act? A) Patriot Act Information Disclosure B) Customer identification form C) Patriot Act identification form for entities and orgs D) All of the above

D

Mortgage Assistance Relief Service (MARS) is any relief service offered to the consumer in exchange for consideration, that assists the consumer with? A) Stopping, preventing, postponing, or saving the consumer's dwelling from foreclosure B) Negotiating, obtaining, or arranging a modification C) Obtaining any forbearance D) All of the above

D

Publicly available information is any information that a financial institution has a reasonable basis to believe is lawfully made available to the general public from? A) Widely distributed media B) Disclosures to the general public required by Federal, State, or local law C) Information otherwise obtained about a consumer in connection with providing a financial product or service D) A & B

D

SAFEGUARD Plan was created to? A) Ensure the security and confidentiality of customer records/information B) Protect against any anticipated threats or hazards to the integrity or security of a customers' records/information C) Protect against unauthorized access D) All of the above

D

Under the final rule MARS providers must comply with the following? A) Prohibit MARS providers from making false or misleading claims B) Mandate that providers disclose certain information about their services C) Bar the collection of advance fees for the provision of MARS, except in certain circumstances for attorneys who collect them in connection with preparing or filing documents in bankruptcy, court, or administrative proceedings D) All of the above

D

What is personally identifiable financial information? A) Information a consumer provides to obtain a financial product or service B) Information made lawfully available from Federal, State, or local government records C) Information about a consumer resulting from any transaction involving a financial product or service D) A & C

D

Pretexting is the use of?

False pretenses to obtain a person's personal financial information

USA Patriot Act is enforced by the?

Financial Crimes Enforcement Network (FinCEN) part of the Treasury Department

If there are violations of the GLB and it is noticed that another federal law is violated, or if this is a pattern of illegal activity more than $100,000 within a 12 month period, the violator fine will be?

Doubled and they will be imprisoned up to 10 years

FTC Disposal Rule in a legal responsibility, a few things you can do to ensure you and your business's compliance are?

Having safe storage practices, routinely destroy unneeded reports, choose a destruction system, delete computer files containing unneeded consumer reports, and monitor access to reports

A notice as to whether or not you share or sell their NPI must be given upfront at application. If you don't share/sell give them a short form notice that stated this information. If you do share/sell NPI, the clients get a?

Long form notice with the opportunity to "opt out" of sharing/selling

The Patriot Act is used to stop the use of?

Money laundering for terrorist funding

You are required to know who your clients are thru the use of a Customer Identification Program (CIP), minimum information required by law is?

Name, date of birth, address (no civilian PO Boxes), Identification number (SSN, Passport Number, Alien ID card)

Once ID'd you must determine if your client is on a known terrorist list. Terrorist list checking is done thru the?

Office of Foreign Assets Control (OFAC)

Do not call registry - consumers have the opportunity to place themselves on this list to stop telemarketing calls from non exempt entities. After you place yourself/your number on this list, it is there?

Permanently until the number is republished or the consumer requests to be taken off the do not call list

Gramm Leach-Bliley Act (GLBA) put restrictions on Financial Institutions use of borrowers "non-public personal information" and requires a certain disclosure before?

Sharing or selling this information

GLB requires that all Financial Institutions have a written SAFEGUARD Plan, to protect clients NPI, which has to be?

Technical, administrative, and physical

Violations of GLB may result in civil action brought by?

The U.S. Attorney General

T/F: Violations of GLB may result in "the officers and directors of the financial institution shall be subject to, and shall be personally liable for, a civil penalty of not more than ten thousand dollars ($10,000) for each such violation"

True

MARS addresses the acts and practices of for-profit companies that offer to work on behalf of consumers to help them modify the terms of their loans or to avoid foreclosure and specifically targets?

Unfair and deceptive acts and practices of those who provide the services of a Mortgage Assistance Relief Service

Prior express permission?

When the consumer gives you a written agreement to allow you to call or if a business relationship is established