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

Collecting Bank Account Information in North Dakota

Based on the documents provided, there are limitations on collecting and disclosing bank account information in North Dakota.

Limits on Disclosure of Nonpublic Personal Financial Information to Nonaffiliated Third Parties [3.1]([3.1])

A licensee may not disclose any nonpublic personal financial information about a consumer to a nonaffiliated third party unless an authorization is obtained from the consumer whose nonpublic personal information is sought to be disclosed. A valid authorization to disclose nonpublic personal information pursuant to section 45-14-01-11 shall be in written or electronic form separate from that used for any other purpose and shall contain specific information.

Limits on Sharing Account Number Information for Marketing Purposes [3.3]([3.3])

A licensee shall not disclose, other than to a consumer reporting agency, a policy number or similar form of access number or access code for a consumer’s policy or transaction account to any nonaffiliated third party for use in telemarketing, direct mail marketing, or other marketing through electronic mail to the consumer.

Limits on Redisclosure and Reuse of Nonpublic Personal Financial Information [3.2]([3.2])

If a licensee receives nonpublic personal financial information from a nonaffiliated financial institution, the licensee’s disclosure and use of that information is limited. The licensee may disclose the information to the affiliates of the financial institution from which the licensee received the information, and the licensee may disclose and use the information pursuant to an exception in section 45-14-01-15 or 45-14-01-16, in the ordinary course of business to carry out the activity covered by the exception under which the licensee received the information. However, the licensee may not disclose that information to a third party for marketing purposes or use that information for its own marketing purposes.

Additional Context

The Bank of North Dakota is the only bank where state funds and funds of all state penal, educational, and industrial institutions must be deposited [1.2]([1.2]).

If a bank intends to establish a customer electronic funds transfer center, it must give written notice of such intention to all banks in North Dakota within a fifty-mile radius of the proposed center at least thirty days prior to establishing such center [2.1]([2.1]).

Conclusion

Based on the above documents, it is clear that collecting bank account information from participants in North Dakota is subject to limitations and requirements. A licensee must obtain a valid authorization from the consumer whose nonpublic personal information is sought to be disclosed. Additionally, a licensee shall not disclose a policy number or similar form of access number or access code for a consumer’s policy or transaction account to any nonaffiliated third party for use in marketing purposes.

Therefore, it is recommended that you consult with a legal expert to ensure that you are in compliance with all applicable laws and regulations.

Note: This response is based solely on the documents provided and is not intended to be legal advice.

Source(s):
Jurisdiction

North Dakota