[Federal Register Volume 65, Number 208 (Thursday, October 26, 2000)]
[Proposed Rules]
[Pages 64168-64176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-27363]


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NATIONAL CREDIT UNION ADMINISTRATION

12 CFR Part 706


Credit Practices

AGENCY: National Credit Union Administration.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The National Credit Union Administration (NCUA) is publishing 
for comment proposed regulations implementing provisions of the Fair 
Credit Reporting Act (FCRA) that permit federal credit unions (FCUs) to 
communicate information to their affiliates (affiliate information 
sharing) without incurring the obligations of consumer reporting 
agencies. The proposed regulations explain how to comply with the 
affiliate information sharing provisions, addressing such matters as 
the content and delivery of the notice to consumers. The proposed 
regulations also implement certain related provisions. NCUA 
participated as part of an interagency group composed of 
representatives from the Board of Governors of the Federal Reserve, the 
Federal Deposit Insurance Corporation, the Office of the Comptroller of 
the Currency and the Office of Thrift Supervision (collectively, the 
Agencies). NCUA's proposed rule is therefore comparable to the proposed 
rules filed jointly by the Agencies, but takes into account the unique 
circumstances of federal credit unions and their members. NCUA has 
attempted to conform these proposed regulations to the final 
regulations implementing the privacy provisions of the Gramm-Leach-
Bliley Act.

DATES: Written comments must be received by the NCUA on or before 
December 26, 2000.

ADDRESSES: Direct comments to Becky Baker, Secretary of the Board. Mail 
or hand-deliver comments to: National Credit Union Administration, 1775 
Duke Street, Alexandria, Virginia 22314-3428. You may also fax comments 
to (703) 518-6319. Please send comments by one method only.

FOR FURTHER INFORMATION CONTACT: Chrisanthy J. Loizos, Staff Attorney, 
Division of Operations, Office of General Counsel, at the above address 
or telephone: (703) 518-6540.

SUPPLEMENTARY INFORMATION:

I. Background

The FCRA

    The FCRA, enacted in 1970, sets standards for the collection, 
communication, and use of information bearing on a consumer's credit 
worthiness, credit standing, credit capacity, character, general 
reputation, personal characteristics, or mode of living. 15 U.S.C. 
1681-1681u. In 1996, the Consumer Credit Reporting Reform Act amended 
the FCRA extensively (1996 Amendments). Pub. L. 104-208, 110 Stat. 
3009.
    For many years, to avoid the obligations of consumer reporting 
agencies imposed by the FCRA, many financial institutions avoided 
making any communications to affiliates of consumer information that 
could constitute consumer reports.\1\ The 1996 Amendments, however, 
excluded specified types of information sharing with affiliates from 
the definition of ``consumer report'' assuring financial institutions 
that making these communications would not expose them to the 
obligations of consumer reporting agencies. In particular, the 1996 
Amendments excluded from the definition of ``consumer report'' the 
sharing of ``other information'' among affiliates, so long as the 
consumer, having been given notice and an opportunity to opt out, did 
not opt out. ``Other information'' refers to information that is 
covered by the FCRA and that is not a report containing information 
solely as to transactions or experiences between the consumer and the 
person making the report.
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    \1\ The FCRA creates substantial obligations for ``consumer 
reporting agencies.'' FCRA, section 603(f); see, e.g., sections 607, 
611. These obligations include furnishing consumer reports only for 
permissible purposes, maintaining high standards for ensuring the 
accuracy of information in consumer reports, resolving customer 
disputes, and other matters.
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    The 1996 Amendments prohibited the NCUA and the Agencies from 
issuing implementing regulations. 15 U.S.C. 1681s(a)(4) (repealed). The 
Gramm-Leach-Bliley Act (GLBA) repealed this prohibition and directed 
the Board to prescribe regulations as necessary to carry out the 
purposes of FCRA with respect to FCUs. Pub. L. 106-102 Sec. 506, 15 
U.S.C. 1681s(e)(2).
    NCUA's proposed rule and a large portion of the preamble mirror the 
Agencies' joint notice of proposed rulemaking, although credit unions 
differ from other financial institutions in several ways. FCUs are not-
for-profit cooperative financial institutions, formed to permit those 
in the field of membership specified in the credit union's charter to 
save, borrow, and obtain related financial services. Member ownership 
and control make credit unions unique from other financial 
institutions. FCU investment in affiliates is limited to credit union 
service organizations (CUSOs), which are organizations that primarily 
serve credit unions or their members and whose business is related to 
the daily

[[Page 64169]]

and routine operations of credit unions. 12 U.S.C. 1757(5)(D), 
1757(7)(I).

Coordination with Privacy Regulations

    The GLBA sets standards for financial institutions' disclosure of 
nonpublic personal information to nonaffiliated third parties (privacy 
provisions; Pub. L. 106-102, 15 U.S.C. 6802; see also 15 U.S.C. 6803.) 
NCUA published final regulations implementing these privacy provisions 
on May 18, 2000 (65 FR 31721, May 18, 2000).
    The privacy regulations do not ``modify, limit, or supersede the 
operation of the Fair Credit Reporting Act.'' 15 U.S.C. 6806. Thus, 
both the privacy regulations and the FCRA may apply to an FCU's 
disclosure of consumer information. Moreover, if an FCU provides an opt 
out notice under the FCRA, that notice must be included in certain 
notices mandated by the privacy regulations, including annual notices 
to customers. 15 U.S.C. 6803. Therefore, NCUA anticipates that FCUs 
will design their information-sharing policies and practices, taking 
into account both the privacy regulations and the regulations 
implementing the FCRA. To ease compliance and promote consistency, NCUA 
is conforming the two regulations where appropriate.
    Unlike the privacy regulations, these regulations do not 
distinguish between members and nonmembers, or customers and consumers. 
The FCRA is triggered when an individual's credit information is 
assembled or evaluated to establish the consumer's eligibility for: 
credit or insurance used for consumer purposes; employment purposes; or 
any other purpose authorized under section 604 of the FCRA. 15 U.S.C. 
1681 et seq. FCUs must comply with these regulations whenever it 
furnishes consumer credit information to third parties. FCUs are 
reminded that the FCRA remains in effect prior to the mandatory 
compliance date; to avoid becoming consumer reporting agencies, FCUs 
must refrain at all times from sharing opt out information with their 
affiliates without providing consumers the opportunity to opt out.

II. Section-by-Section Analysis

Section 706.6--What does this subpart do?

    Proposed paragraph 706.6(a) briefly describes the purpose of the 
regulations. Proposed paragraph 706.6(b) briefly describes the scope of 
the regulations, including the information and institutions subject to 
them.
    Proposed paragraph 706.6(c) provides that nothing in this subpart 
modifies, limits, or supersedes the standards governing the privacy of 
individually identifiable health information promulgated by the 
Secretary of Health and Human Services pursuant to sections 262 and 264 
of the Health Insurance Portability and Accountability Act (HIPAA) of 
1996 (42 U.S.C. 1320d-1320d-8). Certain FCUs that possess medical 
information about consumers may be covered by these regulations, the 
GLBA privacy regulations, and rules promulgated by the Department of 
Health and Human Services (HHS) under the authority of sections 262 and 
264 of HIPAA once those regulations are finalized. Based on the 
proposed HIPAA rules, it appears likely that there will be areas of 
overlap between the HIPAA and the FCRA affiliate information-sharing 
rules. After HHS publishes its final rules, the Agencies and NCUA will 
consult with HHS to avoid the imposition of duplicative or inconsistent 
requirements.

Section 706.7--What is the significance of the examples used in this 
subpart?

    Proposed Sec. 706.7 clarifies that the examples used in the subpart 
and in the sample notice are not exclusive means of compliance; rather, 
they are intended to provide guidance on how to comply in specific 
situations. NCUA solicits comment on whether to include additional or 
different examples, and, more fundamentally, on whether the use of 
examples within the regulations is appropriate and useful. Elevating 
the fact patterns to safe harbors in the rule may generate certain 
problems over time. For example, changes in technology or practice may 
ultimately impact the fact patterns contained in the examples and 
require changes in the regulations. NCUA solicits comments on whether 
alternative methods exist that offer illustrative guidance of the 
concepts portrayed by the examples.

Section 706.8--What definitions apply to this subpart?

    Discussed below are a few key definitions, including: ``affiliate'' 
(as well as the related terms ``company'' and ``control''); ``clear and 
conspicuous''; ``opt out''; ``opt out information''; and ``consumer 
report.'' The proposal tracks the statutory language referring to 
``transaction or experience information,'' but does not define that 
term.
Affiliate
    Several FCRA provisions apply to information sharing with persons 
``related by common ownership or affiliated by corporate control,'' 
``related by common ownership or affiliated by common corporate 
control,'' or ``affiliated by common ownership or common corporate 
control.'' E.g., FCRA, sections 603(d)(2), 615(b)(2), and 624(b)(2). 
Proposed paragraph (a) defines ``affiliate'' to refer to all these 
relationships between and among companies, and clarifies that ``related 
or affiliated by common ownership or affiliated by corporate control or 
common corporate control'' means controlling, controlled by, or under 
common control with another company. This paragraph also reflects that 
FCU investment in affiliates is limited to CUSOs.
    Consistent with the definitions in the privacy regulations, the 
proposal uses a definition of ``control'' that applies exclusively to 
the control of a ``company,'' and defines ``company'' to include any 
corporation, limited liability company, business trust, general or 
limited partnership, association or similar organization. See proposed 
paragraph (d) (``company'') and (h) (``control''). The proposal also 
maintains the example of ``control'' used in the privacy regulations. 
NCUA presumes an FCU has a controlling influence over the management or 
policies of a CUSO if the CUSO is 67% owned by federal or state-
chartered credit unions. NCUA incorporates the discussion of the 
definition of ``control'' within the privacy regulations into this 
preamble. See 65 FR 31723-24 (May 18, 2000).
Clear and Conspicuous
    Proposed paragraph (b) defines ``clear and conspicuous'' to mean 
that a notice must be reasonably understandable and designed to call 
attention to the nature and significance of the information it 
contains. The proposed regulations do not mandate the use of any 
particular technique for making a notice clear and conspicuous; 
instead, they give FCUs flexibility in determining how to comply. An 
FCU may make its notice reasonably understandable, for example, by 
using short explanatory sentences or bullet lists and avoiding legal or 
highly technical business terminology whenever possible. An FCU may 
design its notice to call attention to the nature and significance of 
the information in the notice by, for example, using a plain-language 
heading and a typeface and size that are easy to read.
    Proposed paragraph (b) is consistent with the ``clear and 
conspicuous'' standard in the privacy regulations. It offers a more 
detailed exposition of the standard (particularly with respect to what 
makes a notice ``conspicuous'') than some other regulations, such as 
the Board's Regulation Z. However, laws

[[Page 64170]]

other than FCRA--for example, the Truth in Lending Act--that require 
clear and conspicuous disclosures, are beyond the scope of this 
rulemaking. Accordingly, the standard proposed here does not affect 
disclosures required by those laws.
    NCUA requests comment on whether FCUs have any particular concerns 
about compliance with FCRA's clear and conspicuous standard when FCRA 
opt out notices are included with the GLBA privacy provision notices.
Consumer Report
    Proposed paragraph (f) parallels the definition in section 603(d) 
of the FCRA. Paragraph (f)(2)(ii) excludes from the definition of 
``consumer report'' communication among affiliates of a report 
containing information solely as to transactions or experiences between 
the consumer and the person making the report.\2\
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    \2\ Prior to the 1996 amendments to FCRA, affiliated entities 
could not pool their transaction or experience information in a 
common database without being considered a consumer reporting 
agency. Instead, each affiliate could disclose its own transaction 
or experience information to another affiliate directly only in the 
same manner as an entity can disclose information to a nonaffiliated 
third party. While transaction or experience information has been 
excluded from the definition of ``consumer report'' since the FCRA's 
initial passage, the 1996 amendments facilitated the disclosure of 
such information among affiliates.
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    Paragraph (f)(2)(iii) excludes any communication of ``opt out 
information'' if the conditions set out in Secs. 706.9 through 706.14 
are satisfied. The FCRA, as explained above, uses the term ``other 
information'' to refer to information that it covers but that is not 
transaction or experience information. This proposal refers to ``other 
information'' using the more descriptive term ``opt out information.'' 
See proposed paragraph (k).
Opt Out
    Proposed paragraph (j) defines this term to mean a direction by a 
consumer that an FCU not communicate opt out information about the 
consumer to one or more of the FCU's affiliates.
Opt Out Information
    As described above, the 1996 Amendments to FCRA excluded from the 
definition of ``consumer report'' the sharing of ``other information'' 
among affiliates, so long as the consumer, having been given notice and 
an opportunity to opt out, did not opt out. ``Other information'' 
refers to information that is covered by the FCRA and that is not a 
report containing information solely as to transactions or experiences 
between the consumer and the person making the report. The proposed 
regulation uses the term ``opt out information'' to describe this 
category of information.
    Proposed paragraph (k) defines opt out information as information 
that (i) bears on a consumer's credit worthiness, credit standing, 
credit capacity, character, general reputation, personal 
characteristics, or mode of living, (ii) is used or expected to be used 
or collected for one or more of the permissible purposes listed in FCRA 
(e.g. credit transaction, employment purposes), and (iii) is not 
transaction or experience information. Section 706.10(d) gives examples 
of categories of opt out information.

Section 706.9--How may a credit union communicate opt out information 
to its affiliates without the communication being a consumer report?

    Proposed Sec. 706.9 describes the conditions that an FCU must meet 
to ensure that its communications of opt out information to its 
affiliates do not constitute consumer reports, including the 
requirement that the FCU provide an opt out notice. Section 
603(d)(2)(A)(iii) of the FCRA excludes from the definition of 
``consumer report'' the sharing of opt out information among affiliates 
if:

    [I]t is clearly and conspicuously disclosed to the consumer that 
the information may be communicated among such persons and the 
consumer is given the opportunity, before the time that the 
information is initially communicated, to direct that such 
information not be communicated among such persons.* * *

    Proposed Sec. 706.9 accordingly provides that opt out information 
may be communicated among affiliates without the communication being a 
consumer report if: (i) The FCU has provided an opt out notice; (ii) 
the FCU has given the consumer a reasonable opportunity and means, 
before the time that it communicates the information, to opt out; and 
(iii) the consumer has not opted out.
Mergers & Acquisitions
    In a merger or acquisition situation, the need to provide new opt 
out notices to the consumers of the entity that ceases to exist will 
depend on whether the notices previously given to those consumers 
accurately reflect the policies and practices of the surviving entity. 
If they do, the surviving entity will not be required under the rule to 
provide new notices.

Section 706.10--What must be in an opt out notice?

    Proposed paragraph (a) provides that an opt out notice must be 
clear and conspicuous, and must accurately explain: (i) The categories 
of opt out information about the consumer that the FCU communicates; 
(ii) the categories of affiliates to which the FCU communicates the 
information; (iii) the consumer's ability to opt out; and (iv) the 
means to do so. NCUA invites comment on whether FCUs should also have 
to disclose in their FCRA notices how long a consumer has to respond to 
the opt out notice before the FCU may begin disclosing information 
about that consumer to its affiliates, as well as the fact that a 
consumer can opt out at any time. These disclosures are not required in 
the privacy regulations. NCUA seeks comment on whether the benefits of 
the additional disclosures would outweigh the burdens, and, if so, 
whether the regulation should require the disclosures to state that an 
FCU will wait 30 days in every instance before sharing consumer 
information with affiliates (see proposed Sec. 706.11, below, for 
additional discussion on reasonable opportunity to opt out).
    Proposed paragraph (b) clarifies that an FCU's notice may describe 
not only the communications of opt out information that the FCU 
currently plans to make to its affiliates, but also the communications 
that it reserves the right to make in the future.
    Proposed paragraph (c) explains that an FCU may provide the 
consumer with the option of an opt out that covers only part of the 
information or certain affiliates. This would enable an FCU to give 
consumers a menu of opt out choices if it desires to do so.
    Proposed paragraph (d) illustrates how an FCU may categorize the 
opt out information that it communicates to affiliates. Paragraph 
(d)(2) gives examples of opt out information, such as information from 
a consumer's application, information from a consumer report, 
information obtained by verifying representations made by a consumer, 
and information provided by another person regarding that person's 
relationship with the consumer. The first two categories reflect the 
legislative history of the 1996 Amendments, which states in part that 
the opt out provision ``will clarify that affiliates within a Holding 
Company structure can share any application information * * * and 
consumer reports, consistent with the FCRA.'' S. Rep. No. 185, 104th 
Cong., 1st Sess. 18-19 (1995). The other two categories represent 
information that NCUA believes does not constitute

[[Page 64171]]

transaction or experience information when communicated by the FCU that 
has received it. Paragraph (d)(3) gives a non-exclusive list of 
examples of specific items of opt out information within each category, 
including a consumer's income, credit score or credit history, open 
lines of credit, employment history and medical history.
    Medical data are especially sensitive for many consumers; if such 
data are among the opt out information that an FCU communicates to its 
affiliates, the FCU satisfies the requirement to categorize that 
information if it includes examples of medical data that it intends to 
share. NCUA notes that the items listed in paragraph (d)(3) as examples 
of information that would be included within the categories of opt out 
information are illustrative only. Those items would not be considered 
opt out information in cases where the information is obtained from a 
source other than those listed in paragraph (d)(2). Comment is 
requested as to the appropriateness of these examples of categories and 
items of opt out information, and whether additional or different 
examples should be used.
    The descriptions of the categories of information set out in 
proposed paragraph (d)(2) differ somewhat from those in the privacy 
regulations. 12 CFR 716.6. NCUA solicits comment on the extent to which 
the categories in (d)(2) can be treated as consistent with similar 
categories in the privacy regulations (such as disclosures of 
information from consumer reporting agencies) in order to reduce 
compliance burden and consumer confusion.
    Paragraph (e) explains how an FCU can satisfy the requirement that 
it categorize the affiliates to which it communicates opt out 
information. Paragraph (f) cross-references the sample notice in 
Appendix A, which presents a further illustration of the content of an 
opt out notice.

Section 706.11--How may a credit union provide a reasonable opportunity 
to opt out?

    Proposed paragraph (a) sets forth that an FCU will provide a 
reasonable opportunity to opt out by providing a reasonable period of 
time for the consumer to opt out from the time the notice is delivered. 
Proposed paragraph (b) sets out examples of what is a reasonable period 
of time when notices are provided in person, by mail, or by electronic 
means. Comment is requested on whether there are other situations that 
would suggest a different reasonable period of time that NCUA should 
note by example. Proposed paragraph (c) explains that a consumer may 
opt out at any time.

Section 706.12--What are reasonable means of opting out?

    Proposed paragraph (a) sets forth the general rule that an FCU 
provides a reasonable means of opting out if it provides a reasonably 
convenient method to the consumer to opt out. Examples of reasonable 
means of opting out and unreasonable means are set out in proposed 
paragraphs (b) and (c), respectively. Proposed paragraph (d) permits an 
FCU to require each consumer to opt out through a specific means, as 
long as that means is reasonable for that consumer.

Section 706.13--How must a credit union deliver an opt out notice?

    Proposed paragraph (a) provides that an FCU must deliver an opt out 
notice so that each consumer can reasonably be expected to receive 
actual notice. As indicated by the examples provided in proposed 
paragraph (b), this is a lesser standard than actual notice. For 
instance, if an FCU mails a printed copy of its notice to the last 
known mailing address of an existing consumer, the FCU has met its 
obligation even if the consumer has changed addresses and never 
receives the notice.
    An FCU may give notice in writing or, if the consumer agrees, 
electronically. For example, the FCU may e-mail its notice to a 
consumer that conducts electronic transactions and has agreed to 
receive electronic notice. NCUA invites comment on whether and how the 
proposed rules governing communications between an FCU and a consumer 
via an electronic medium should be modified in light of the Electronic 
Signatures in Global and National Commerce (the E-Sign Act).\3\
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    \3\ Congress has recently enacted the E-Sign Act, Pub. L. 106-
229, which addresses the use of electronic records and signatures 
for interstate and foreign commerce. This legislation contains 
general rules governing the use of electronic records for providing 
required information to consumers (such as disclosures and 
acknowledgements required by the GLBA). The legal requirement that 
consumer disclosures be in writing may be satisfied by an electronic 
record if the consumer affirmatively consents and certain other 
requirements of the E-Sign Act are met.
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    Proposed paragraph (c) explains that oral notice alone does not 
comply with the notice requirement; however, oral notice may be 
provided in conjunction with appropriate written or electronic notice.
    Proposed paragraph (d) explains that an FCU must provide the notice 
so that the consumer can retain it or obtain it at a later time, and 
gives examples of retention or accessibility.
    Proposed paragraph (e) permits an FCU to provide a joint opt out 
notice with one or more of its affiliates that are identified in the 
notice, as long as the notice is accurate with respect to each entity 
jointly issuing the notice.
    Proposed paragraph (f)(1) sets out rules that apply, 
notwithstanding any other provision of the regulations, when two or 
more consumers jointly obtain a product or service from an FCU 
(referred to in the proposed regulations as joint consumers), other 
than a loan, such as a joint checking account. For example, an FCU may 
provide a single opt out notice to joint accountholders. The notice 
must indicate whether the FCU will consider an opt out by a joint 
accountholder as an opt out by all of the associated accountholders, or 
whether each accountholder may opt out separately. The FCU may not 
require all accountholders to opt out before honoring an opt out 
direction by one of the joint accountholders. With respect to loans, 
paragraph (f)(2) requires that an FCU provide an opt out notice to each 
borrower or loan guarantor if the FCU intends to communicate opt out 
information about the consumer to any of the FCU's affiliates.

Section 706.14--When is revised opt out notice required?

    Proposed Sec. 706.14 addresses the situation in which an FCU has 
provided a consumer with one or more opt out notices but later decides 
to communicate opt out information to its affiliates other than 
described in those notices. It explains that an FCU must send a revised 
opt out notice that complies with Sec. 706.9, including providing a 
reasonable means and opportunity to opt out, and communicating the 
information only if the consumer has not opted out.

Section 706.15--When must a credit union comply with an opt out?

    Proposed Sec. 706.15 explains that if an FCU provides a consumer 
with an opt out notice, and the consumer opts out, the FCU must comply 
as soon as reasonably practicable after receiving the consumer's 
direction. Comment is solicited on whether NCUA should establish a 
fixed number of days--for example, 30 days--that would be deemed a 
``reasonably practicable'' period of time for complying with a 
consumer's opt out direction.

Section 706.16--How long does an opt out last?

    Proposed Sec. 706.16 provides that an opt out continues to apply to 
the information and affiliates described in the applicable opt out 
notice until

[[Page 64172]]

revoked by the consumer in writing, or if the consumer agrees, 
electronically, as long as the consumer continues to have a 
relationship with the FCU. If the consumer's relationship with the FCU 
terminates, the opt out will continue to apply to this information. 
However, a new notice and opportunity to opt out must be provided if 
the consumer establishes a new relationship with the FCU.

Section 706.17--May a credit union condition the availability or terms 
of credit on whether a consumer opts out?

    Proposed paragraph (a) reminds FCUs that they may not 
``discriminate against an applicant'' for credit because the applicant 
opts out. The source of this prohibition is the Equal Credit 
Opportunity Act (ECOA; 15 U.S.C. 1691 et seq.), which bars 
discrimination on a prohibited basis in any aspect of a credit 
transaction; one prohibited basis is exercising a right under the 
Consumer Credit Protection Act, which includes the FCRA.
    Proposed paragraph (b) provides examples of prohibited 
discrimination against an applicant. Paragraph (c) notes that the terms 
``applicant'' and ``discriminate against'' have the meaning ascribed to 
these terms in 12 CFR part 202.

Appendix A

    Appendix A, which is part of these regulations, contains a sample 
notice, part or all of which may be used to facilitate compliance with 
the notice requirements. Although use of the sample notice is not 
required, FCUs using it properly to provide notices will be deemed to 
be in compliance.
    NCUA solicits comment on all aspects of the proposed regulations, 
including but not limited to those highlighted above.

III. Regulatory Analysis

Paperwork Reduction Act

    This proposed regulation contains disclosure requirements for FCUs 
and their affiliates. An FCU that (a) has affiliates, (b) does not wish 
to be considered a consumer reporting agency, and (c) wishes to share 
consumer information (other than transaction and experience 
information) with its affiliates, must prepare and provide a notice to 
all its consumers advising them of their opportunity to opt out of 
information sharing with its affiliates. 12 CFR 706.9. If an FCU wishes 
to share information in a way that is inconsistent with notices 
previously given to consumers, the FCU must provide consumers with 
revised notices. 12 CFR 706.14. The collection of information 
requirements contained in this notice of proposed rulemaking will be 
submitted to the Office of Management and Budget for review in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507).
    In estimating burden, NCUA assumed that if an FCU provides an opt 
out notice under the FCRA, that notice must be included in certain 
notices mandated by the GLBA privacy provisions, and will not be sent 
out separately. The analysis assumes that FCUs will provide single, 
combined notices covering all of the various relationships a consumer 
may have with an FCU, rather than separate opt out notices based on 
product lines such as loans and share accounts. NCUA seeks comment as 
to whether FCUs would likely send separate or combined notices.
    This proposed regulation contains consumer reporting requirements. 
In order for consumers to invoke their right to opt out, they must 
respond to the credit union's opt out notice. 12 CFR 706.15. NCUA 
requests public comment on all aspects of the collections of 
information contained in this proposed rule, including consumer 
responses to the opt out notice and consumer changes to their opt out 
status with a credit union. 12 CFR 706.11(c). In light of the 
uncertainty regarding what FCUs will do to comply with the opt out 
requirements and how consumers will react, NCUA estimates a nominal 
burden stemming from consumer responses of one hour per FCU, and will 
revisit this estimate in light of the comments NCUA receives.
    The Board estimates that it will take an average of ten hours total 
for an FCU to develop and process opt-out notices that comply with 
these regulations. The Board also estimates that nine hundred sixty-two 
FCUs have investments in CUSOs. The cumulative total annual paperwork 
burden is estimated to be approximately nine thousand six hundred 
twenty hours.
    NCUA will submit the collection of information requirements 
contained in the regulation to the OMB in accordance with the Paperwork 
Reduction Act of 1995. 44 U.S.C. 3507. The NCUA will use any comments 
received to develop its new burden estimates. Comments on the 
collections of information should be sent to Office of Management and 
Budget, Reports Management Branch, New Executive Office Building, Room 
10202, Washington, DC 20503; Attention: Alex T. Hunt, Desk Officer for 
NCUA. Please send NCUA a copy of any comments you submit to OMB.

Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act, NCUA 
certifies that this proposed rulemaking will not have a significant 
economic impact on a substantial number of small entities. FCUs have 
had to notify their consumers of the right to opt out of affiliate 
sharing of certain information since 1997. This rulemaking provides 
guidance to FCUs concerning how they may comply with the statutory 
requirements, but requires no new types of disclosure or opt out 
system. While existing forms may need to be modified, these 
modifications are unlikely to result in a significant economic impact 
on a substantial number of small entities.
    In addition, some of the requirements in the proposed rule have 
been designed to correspond to the requirements of the privacy 
regulations. For example, under both regulations, FCUs, in certain 
circumstances, must deliver notices to consumers and to provide 
consumers an opportunity to opt out of certain information disclosures. 
This proposed rule would allow FCUs to combine into one notice the 
notice they must deliver under FCRA and the notice that they must 
deliver under the privacy regulations. Also, FCUs may combine their 
consumers' opt out responses into one opt out response. By combining 
the notices they deliver and the opt out responses they process, FCUs 
will not need to produce additional opt out responses under this rule. 
Because the proposed rule is designed to minimize FCRA's burden on 
FCUs, and because the FCRA requirements have been effective since 1997, 
NCUA believes that this proposed rule will not have a significant 
economic impact on a substantial number of small entities. For these 
reasons, a regulatory flexibility analysis is not required.

Executive Order 13132

    Executive Order 13132 encourages independent regulatory agencies to 
consider the impact of their regulatory actions on state and local 
interests. In adherence to fundamental federalism principles, NCUA, an 
independent regulatory agency as defined in 44 U.S.C. 3502(5), 
voluntarily complies with the executive order. This proposed rule, if 
adopted, applies only to federally-chartered credit unions and will not 
have substantial direct effects on the states, on the relationship 
between the national government and the states, or on the distribution 
of power and responsibilities among the various levels of government. 
NCUA has determined that the proposed rule does

[[Page 64173]]

not constitute a policy that has federalism implications for purposes 
of the executive order.

The Treasury and General Government Appropriations Act, 1999--
Assessment of Federal Regulations and Policies on Families

    The NCUA has determined that this proposed rule will not affect 
family well-being within the meaning of section 654 of the Treasury and 
General Government Appropriations Act, 1999, Pub. L. 105-277, 112 Stat. 
2681 (1998).

Agency Regulatory Goal

    NCUA's goal is to promulgate clear and understandable regulations 
that impose minimal regulatory burden. We request your comments on 
whether the proposed amendment is understandable and minimally 
intrusive if implemented as proposed.

List of Subjects in 12 CFR Part 706

    Credit, Credit unions, Trade practices.

    By the National Credit Union Administration Board on October 19, 
2000.
Becky Baker,
Secretary of the Board.
    For the reasons set forth in the preamble, it is proposed that 12 
CFR chapter VII be amended as follows:

PART 706--CREDIT PRACTICES AND FAIR CREDIT REPORTING

    1. The authority citation for part 706 is revised to read as 
follows:

    Authority: 15 U.S.C. 57a(f), 1681s.

    2. A heading for subpart A is added preceding Sec. 706.1 to read as 
follows:

Subpart A--Credit Practices

    3. Subpart B is added to part 706 to read as follows:
Subpart B--Fair Credit Reporting
706.6   What does this subpart do?
706.7   What is the significance of the examples used in this 
subpart?
706.8   What definitions apply to this part?
706.9   How may a credit union communicate opt out information to 
its affiliates without the communication being a consumer report?
706.10   What must be in an opt out notice?
706.11   How may a credit union provide a reasonable opportunity to 
opt out?
706.12   What are reasonable means of opting out?
706.13   How must a credit union deliver an opt out notice?
706.14   When is a revised opt out notice required?
706.15   When must a credit union comply with an opt out?
706.16   How long does an opt out last?
706.17   May a credit union condition the availability of terms of 
credit on whether a consumer opts out?

Appendix A to Subpart B--Sample Notice

Subpart B--Fair Credit Reporting


Sec. 706.6  What does this subpart do?

    (a) Purpose. This subpart governs the collection, communication, 
and use by federal credit unions of certain information bearing on a 
consumer's credit worthiness, credit standing, credit capacity, 
character, general reputation, personal characteristics, or mode of 
living.
    (b) Scope. This subpart applies to information that is used or 
expected to be used or collected in whole or in part for the purpose of 
serving as a factor in establishing a consumer's eligibility for 
credit, insurance, employment, or any other purpose authorized under 
section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b). This 
subpart applies to federal credit unions.
    (c) Relation to other laws. Nothing in this subpart modifies, 
limits, or supercedes the standards governing the privacy of 
individually identifiable health information promulgated by the 
Secretary of Health and Human Services under the authority of sections 
262 and 264 of the Health Insurance Portability and Accountability Act 
of 1996 (42 U.S.C. 1320d-1320d-8).


Sec. 706.7  What is the significance of the examples used in this 
subpart?

    The examples in this subpart and the sample notice in appendix A to 
subpart B are not exclusive. Compliance with an example or the use of 
the sample notice, to the extent applicable, constitutes compliance 
with this subpart.


Sec. 706.8  What definitions apply to this subpart?

    As used in these regulations, unless the context requires 
otherwise--
    (a) Affiliate--(1) In general. The term means any company that is 
related or affiliated by common ownership, or affiliated by corporate 
control or common corporate control, with another company.
    (2) Related or affiliated by common ownership or affiliated by 
corporate control or common corporate control. This means controlling, 
controlled by, or under common control with, another company.
    (3) Example. An affiliate of a federal credit union is a credit 
union service organization (CUSO), as provided in 12 CFR part 712, that 
is controlled by the federal credit union.
    (b) Clear and conspicuous--(1) In general. The term means that a 
notice is reasonably understandable and designed to call attention to 
the nature and significance of the information contained in the notice.
    (2) Examples--(i) Reasonably understandable. You may make your 
notice reasonably understandable if you:
    (A) Present the information in the notice in clear and concise 
sentences, paragraphs, and sections;
    (B) Use short explanatory sentences or bullet lists whenever 
possible;
    (C) Use definite, concrete, everyday words and active voice 
whenever possible;
    (D) Avoid multiple negatives;
    (E) Avoid legal and highly technical business terminology whenever 
possible; and
    (F) Avoid explanations that are imprecise and readily subject to 
different interpretations.
    (ii) Designed to call attention. You design your notice to call 
attention to the nature and significance of the information it contains 
if you:
    (A) Use a plain-language heading to call attention to the notice;
    (B) Use a typeface and type size that are easy to read;
    (C) Provide wide margins and ample line spacing;
    (D) Use boldface or italics for key words; and (E) In a form that 
combines your notice with other information, use distinctive type 
sizes, styles, and graphic devices, such as shading and sidebars.
    (iii) Notice on a web page. If you provide a notice on a web page, 
you design your notice to call attention to the nature and significance 
of the information it contains if:
    (A) You place either the notice, or a link that connects directly 
to the notice and that is labeled appropriately to convey the 
importance, nature, and relevance of the notice, on a page that 
consumers access often, such as a page on which transactions are 
conducted;
    (B) You use text or visual cues to encourage scrolling down the 
page if necessary to view the entire notice; and
    (C) You ensure that other elements on the web page (such as text, 
graphics, links, or sound) do not detract attention from the notice.
    (c) Communciation includes written, oral, and electronic 
communication; provided that the term includes electronic communication 
to a consumer only if the consumer agrees to receive the communication 
electronically.
    (d) Company means any corporation, limited liability company, 
business trust, general or limited partnership, association, or similar 
organization.
    (e) Consumer means an individual.
    (f) Consumer report--(1) In general. The term means any written, 
oral, or

[[Page 64174]]

other communication of any information by a consumer reporting agency 
bearing on a consumer's credit worthiness, credit standing, credit 
capacity, character, general reputation, personal characteristics, or 
mode of living which is used or expected to be used or collected in 
whole or in part for the purpose of serving as a factor in establishing 
the consumer's eligibility for:
    (i) Credit or insurance to be used primarily for personal, family, 
or household purposes;
    (ii) Employment purposes; or (iii) Any other purpose authorized 
under section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b).
    (2) Exclusions. The term does not include:
    (i) Any report containing information solely as to transactions or 
experiences between the consumer and the person making the report;
    (ii) Any communication of that information among affiliates;
    (iii) Any communication among affiliates of opt out information if 
the conditions in Secs. 706.9 through 706.14 are satisfied;
    (iv) Any authorization or approval of a specific extension of 
credit directly or indirectly by the issuer of a credit card or similar 
device;
    (v) Any report in which a person who has been requested by a third 
party to make a specific extension of credit directly or indirectly to 
a consumer conveys his or her decision with respect to such request, if 
the third party advises the consumer of the name and address of the 
person to whom the request was made, and the person makes the 
disclosures to the consumer required under section 615 of the Fair 
Credit Reporting Act (15 U.S.C. 1681m); or
    (vi) A communication described in section 603(o) of the Fair Credit 
Reporting Act (15 U.S.C. 1681a(o)).
    (g) Consumer reporting agency means any person which, for monetary 
fees, dues or on a cooperative nonprofit basis, regularly engages in 
whole or in part in the practice of assembling or evaluating consumer 
credit information or other information on consumers for the purpose of 
furnishing consumer reports to third parties, and which uses any means 
or facility of interstate commerce for the purpose of preparing or 
furnishing consumer reports.
    (h) Control of a company means:
    (1) Ownership, control, or power to vote 25 percent or more of the 
outstanding shares of any class of voting security of the company, 
directly or indirectly, or acting through one or more other persons;
    (2) Control in any manner over the election of a majority of the 
directors, trustees, or general partners (or individuals exercising 
similar functions) of the company; or
    (3) The power to exercise, directly or indirectly, a controlling 
influence over the management or policies of the company, as the NCUA 
determines.
    (4) Example. NCUA will presume a credit union has a controlling 
influence over the management or policies of a CUSO, if the CUSO is 67% 
owned by federal or state-chartered credit unions.
    (i) Credit union means a federal credit union.
    (j) Opt out means a direction by a consumer that you not 
communicate opt out information about the consumer to one or more of 
your affiliates.
    (k) Opt out information means information that:
    (1) Bears on a consumer's credit worthiness, credit standing, 
credit capacity, character, general reputation, personal 
characteristics, or mode of living;
    (2) Is used or expected to be used or collected in whole or in part 
to serve as a factor in establishing the consumer's eligibility for 
credit or another purpose listed in section 604 of the Fair Credit 
Reporting Act (15 U.S.C. 1681b); and
    (3) Is not a report containing information solely as to 
transactions or experiences between the consumer and the person 
reporting or communicating the information.
    (l) Person means any individual, partnership, corporation, trust, 
estate, cooperative, association, government or governmental 
subdivision or agency, or other entity.
    (m) You means a federal credit union.


Sec. 706.9  How may a credit union communicate opt out information to 
its affiliates without the communication being a consumer report?

    In general, your communication to your affiliates of opt out 
information about a consumer is not a consumer report if:
    (a) You have provided the consumer with an opt out notice;
    (b) You have given the consumer a reasonable opportunity and means 
before you communicate the information to your affiliates, to opt out; 
and
    (c) The consumer has not opted out.


Sec. 706.10  What must be in an opt out notice?

    (a) In general. An opt out notice must be clear and conspicuous, 
and must accurately explain:
    (1) The categories of opt out information about the consumer that 
you communicate to your affiliates;
    (2) The categories of affiliates to which you communicate the 
information and;
    (3) The consumer's ability to opt out; and
    (4) A reasonable means for the consumer to opt out.
    (b) Future communications. Your notice may describe:
    (1) Categories of opt out information about the consumer that you 
reserve the right to communicate to your affiliates in the future but 
do not currently communicate; and
    (2) Categories of affiliates to which you reserve the right in the 
future to communicate, but to which you do not currently communicate, 
opt out information about the consumer.
    (c) Partial opt out. You may allow a consumer to select certain opt 
out information or certain affiliates, with respect to which the 
consumer wishes to opt out.
    (d) Examples of categories of information that you communicate. (1) 
You satisfy the requirement to categorize the opt out information that 
you communicate if you list the categories in paragraph (d)(2) of this 
section, as applicable, and a few examples to illustrate the types of 
information in each category. These examples may include those in 
paragraph (d)(3) of this section, if applicable.
    (2) Categories of opt out information may include information:
    (i) From a consumer's application;
    (ii) From a consumer credit report;
    (iii) Obtained by verifying representations made by a consumer; or
    (iv) Provided by another person regarding its employment, credit, 
or other relationship with a consumer.
    (3) Examples of information within a category listed in paragraph 
(d)(2) of this section include a consumer's:
    (i) Income;
    (ii) Credit score or credit history with others;
    (iii) Open lines of credit with others;
    (iv) Employment history with others;
    (v) Marital status; and
    (vi) Medical history.
    (4) You do not satisfy the requirement if you communicate or 
reserve the right to communicate individually identifiable health 
information (as described in section 1171(6)(B) of the Social Security 
Act (42 U.S.C. 1320d(6)(B)) but omit illustrative examples of this 
information.
    (e) Examples of categories of affiliates. (1) You satisfy the 
requirement to categorize the affiliates to which you communicate opt 
out information if you list the categories in paragraph (e)(2) of this 
section, as applicable, and a few

[[Page 64175]]

examples to illustrate the types of affiliates in each category.
    (2) Categories of affiliates may include:
    (i) Financial service providers; and
    (ii) Non-financial companies.
    (f) Sample notice. A sample notice is included in appendix A to 
this subpart.


Sec. 706.11  How may a credit union provide a reasonable time period to 
opt out?

    (a) In general. You provide a reasonable opportunity to opt out if 
you provide a reasonable period of time following the delivery of the 
opt out notice for the consumer to opt out.
    (b) Examples of reasonable period of time:
    (1) In person. You hand-deliver an opt out notice to the consumer 
and provide at least 30 days from the date you delivered the notice.
    (2) By mail. You mail an opt out notice to a consumer and provide 
at least 30 days from the date you mailed the notice.
    (3) By electronic means. You notify the consumer electronically, 
and you provide at least 30 days after the date that the consumer 
acknowledges receipt of the electronic notice.
    (c) Continuing opportunity to opt out. A consumer may opt out at 
any time.


Sec. 706.12  What are reasonable means of opting out?

    (a) General rule. You provide a consumer with a reasonable means of 
opting out if you provide a reasonably convenient method to opt out.
    (b) Reasonably convenient methods. Examples of reasonably 
convenient methods include:
    (1) Designating check-off boxes in a prominent position on the 
relevant forms included with the opt out notice;
    (2) Including a reply form together with the opt out notice;
    (3) Providing an electronic means to opt out, such as a form that 
can be electronically mailed or a process at your web site, if the 
consumer agrees to the electronic delivery of information; or
    (4) Providing a toll-free telephone number that consumers may call 
to opt out.
    (c) Methods not reasonably convenient. Examples of methods that are 
not reasonably convenient:
    (1) Requiring a consumer to write his or her own letter to you; or
    (2) Referring in a revised notice to a check-off box that you 
included with a previous notice but that you do not include with the 
revised notice.
    (d) Requiring specific means of opting out. You may require each 
consumer to opt out through a specific means, as long as that means is 
reasonable for that consumer.


Sec. 706.13  How must a credit union deliver an opt out notice?

    (a) In general. You must deliver an opt out notice so that each 
consumer can reasonably be expected to receive actual notice in writing 
or, if the consumer agrees, electronically.
    (b) Examples of expectation of actual notice. (1) You may 
reasonably expect that a consumer will receive actual notice if you:
    (i) Hand-deliver a printed copy of the notice to the consumer;
    (ii) Mail a printed copy of the notice to the last known address of 
the consumer; or
    (iii) For the consumer who conducts transactions electronically, 
post the notice on your electronic site and require the consumer to 
acknowledge receipt of the notice as a necessary step to obtaining a 
particular product or service.
    (2) You may not reasonably expect that a consumer will receive 
actual notice if you:
    (i) Only post a sign at your office or generally publish 
advertisements presenting your notice; or
    (ii) Send the notice via electronic mail to a consumer who does not 
obtain a product or service from you electronically.
    (c) Oral description insufficient. You may not provide an opt out 
notice solely by orally explaining the notice, either in person or over 
the telephone.
    (d) Retention or accessibility. (1) In general. You must provide an 
opt out notice so that it can be retained or obtained at a later time 
by the consumer in writing or, if the consumer agrees, electronically.
    (2) Examples of retention or accessibility. You provide the notice 
so that it can be retained or obtained at a later time if you:
    (i) Hand-deliver a printed copy of the notice to the consumer;
    (ii) Mail a printed copy of the notice to the last known address of 
the consumer upon request of the consumer; or
    (iii) Make your current notice available on a web site (or link to 
another web site) for the consumer who obtains a product or service 
electronically and who agrees to receive the notice at the web site.
    (e) Joint notice with affiliates. You may provide a joint notice 
with one or more affiliates as long as the notice identifies each 
person providing it and is accurate with respect to each.
    (f) Joint relationships--(1) General rule. Notwithstanding any 
other provision of this subpart, if two or more consumers jointly 
obtain a product or service from you (joint consumers), other than a 
loan, the following rules apply:
    (i) You may provide a single notice to all joint consumers.
    (ii) Any of the joint consumers have the opportunity to opt out.
    (iii) You may treat an opt out direction by a consumer either as:
    (A) Applying to all of the joint consumers; or
    (B) Applying to that particular joint consumer.
    (iv) You must explain in your opt out notice which of the two 
policies set forth in paragraph (f)(1)(iii) of this section you will 
follow.
    (v) If you follow the policy set forth in paragraph (f)(1)(iii)(B) 
of this section, by treating the opt out of a joint consumer as 
applying to that particular joint consumer, you must also permit:
    (A) A joint consumer to opt out on behalf of other joint consumers; 
and
    (B) One or more joint consumers to notify you of their opt out 
directions in a single response.
    (vi) You may not require all joint consumers to opt out before you 
implement any opt out direction.
    (vii) If you receive an opt out by a particular joint consumer that 
does not apply to the others, you may disclose information about the 
others as long as no information is disclosed about the consumer who 
opted out.
    (2) Example. If consumers A and B, who have different addresses, 
have a joint checking account with you and arrange for you to send 
statements to A's address, you may do any of the following, but you 
must explain in your opt out notice which opt out policy you will 
follow. You may send a single opt out notice to A's address and:
    (i) Treat an opt out direction by A as applying to the entire 
account. If you do so and A opts out, you may not require B to opt out 
as well before implementing A's opt out direction.
    (ii) Treat A's opt out direction as applying to A only. If you do 
so, you must also permit;
    (A) A and B to opt out for each other; and
    (B) A and B to notify you of their opt out direction in a single 
response (such as on a single form) if they choose to give you separate 
opt out directions.
    (iii) If A opts out only for A, and B does not opt out, you may 
disclose opt out information only about B, and not about A and B 
jointly.
    (3) Special rule for loans. You must provide an opt out notice to 
each borrower and loan guarantor if you intend to communicate opt out

[[Page 64176]]

information about such consumer to your affiliate.


Sec. 706.14  When is a revised opt out notice required?

    If you have provided a consumer with one or more opt notices and 
plan to communicate opt out information to your affiliates about the 
consumer, other than as described in those notices, you must provide 
the consumer with a revised opt out notice that complies with 
Secs. 706.9 through 706.13.


Sec. 706.15  When must a credit union comply with an opt out?

    If you provide a consumer with an opt out notice and the consumer 
opts out, you must comply with the opt out as soon as reasonably 
practicable after you receive it.


Sec. 706.16  How long does an opt out last?

    An opt out remains effective until revoked by the consumer in 
writing or electronically, as long as the consumer continues to have a 
relationship with you. If the consumer's relationship with you 
terminates, the opt out will apply to this information. However, a new 
notice and opportunity to opt out must be provided if the consumer 
establishes a new relationship with you.


Sec. 706.17  May a credit union condition the availability or terms of 
credit on whether a consumer opts out?

    (a) General rule. If a consumer is an applicant for credit, you 
must not ``discriminate against'' the consumer if the consumer opts out 
of your communication of opt out information to your affiliates.
    (b) Examples of discrimination against an applicant. You 
discriminate against an applicant if you:
    (1) Deny the applicant credit because the applicant opts out;
    (2) Vary the terms of credit adversely to the applicant such as by 
providing less favorable pricing terms to an applicant who opts out; or
    (3) Apply more stringent credit underwriting standards to the 
applicant because the applicant opts out.
    (c) Regulation B. The terms ``applicant'' and ``discriminate 
against'' in Sec. 706.17 have the same meanings ascribed to them in 12 
CFR part 202.

Appendix A to Subpart B--Sample Notice

    This Appendix contains a sample notice to facilitate compliance 
with the notice requirements of these regulations. A credit union 
may use applicable disclosures in this sample to provide notices 
required by these regulations.

Notice of Your Opportunity to Opt Out of Information Sharing With Our 
Affiliates

Information we can share--unless you tell us not to

    What Information: Unless you tell us not to, [Credit Union] may 
share with our affiliates information about you including:
     information we obtain from your application, such as 
[provide illustrative examples, such as ``your income'' or ``your 
marital status''];
     information we obtain from a consumer report, such as 
[provide illustrative examples, such as ``your credit score or 
credit history''];
     information we obtain to verify representations made by 
you, such as [provide illustrative examples, such as ``your open 
lines of credit'']; and
     information we obtain from a person regarding an 
employment, credit, or other relationship with you, such as [provide 
illustrative examples, such as ``your employment history''].
    Shared With Whom: Our affiliates who may receive this 
information are:
     financial service providers, such as [provide 
illustrative examples, such as ``mortgage bankers, broker-dealers, 
and insurance agents'']; and
     non-financial companies, such as [provide illustrative 
examples, such as ``direct marketers''].

How to tell us to not share this information with our affiliates

    If you prefer that we not share this information with our 
affiliates, you may direct us not to share this information by doing 
the following [insert one or more of the reasonable means of opting 
out listed below \1\]: [call us toll free at {insert toll free 
number}]; or [visit our web site at {insert web site address} and 
{provide further instructions how to use the web site option}]; or 
[e-mail us at {insert the e-mail address}]; or [fill out and tear 
off the bottom of this sheet and mail to the following address: 
{insert address}]; or [check the appropriate box on the attached 
form {attach form} and mail to the following address: {insert 
address}].
---------------------------------------------------------------------------

    \1\ If the credit union is using its web site or an e-mail 
address as the only method by which a consumer may opt out, the 
consumer must agree to the electronic delivery of information.

    Note: Your direction in this paragraph covers certain 
information about you that we might otherwise share with our 
affiliates. We may share other information about you with our 
---------------------------------------------------------------------------
affiliates as permitted by law.


[FR Doc. 00-27363 Filed 10-25-00; 8:45 am]
BILLING CODE 7535-01-P