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Can I collect bank account information from participants in Colorado? What are the requirements?

Yes, you can collect bank account information from participants in Colorado, but you must comply with certain requirements.

Collection of Bank Account Information

If you are collecting bank account information from participants in Colorado, you may be subject to the regulations outlined in the Colorado Consumer Protection Act, specifically 3 COCR 702-6 Regulation 6-4-1. This regulation outlines the requirements for initial notice to consumers, opt-out provisions, and exceptions to notice and opt-out requirements for disclosure of nonpublic personal financial information.

Requirements

Under the regulation, you must provide initial notice to consumers regarding the collection and use of their nonpublic personal financial information. You must also provide an opt-out provision, allowing consumers to request that their information not be disclosed to third parties. There are exceptions to the opt-out provision, such as when the disclosure is necessary to protect against fraud or unauthorized transactions, or when the disclosure is required by law.

Additionally, you must retain business records for such periods as are prescribed by or in accordance with the terms of the Colorado Banking Code, specifically CORS 11-102-308. This includes retaining permanently the minute books of meetings of its stockholders and directors, its capital stock ledger and capital stock certificate ledger or stubs, its general ledger, its daily statements of condition, and all records that the banking board shall, in accordance with the terms of this section, require to be retained permanently.

Conclusion

In summary, if you are collecting bank account information from participants in Colorado, you must provide initial notice to consumers, an opt-out provision, and retain business records in accordance with the Colorado Banking Code. It is important to review the specific regulations outlined in 3 COCR 702-6 Regulation 6-4-1 and CORS 11-102-308 to ensure compliance.

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Source(s):
Jurisdiction

Colorado