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Can I collect financial information from participants in Alabama? What are the requirements?

Based on the documents provided, you can collect financial information from participants in Alabama, but you must comply with certain requirements.

Requirements for Collecting Financial Information in Alabama

Initial Notice and Opt-Out Requirements

If you collect nonpublic personal financial information from consumers in Alabama, you must provide an initial notice to them that includes the categories of information you collect and disclose, as well as the categories of third parties to whom you disclose the information [1.6]. Additionally, you must provide consumers with an opportunity to opt-out of the disclosure of their nonpublic personal financial information to nonaffiliated third parties [1.4].

Exceptions to Opt-Out Requirements

There are several exceptions to the opt-out requirements, including disclosures made with the consent or at the direction of the consumer, disclosures made to protect against fraud or unauthorized transactions, disclosures made to persons holding a legal or beneficial interest relating to the consumer, and disclosures made to comply with federal, state, or local laws [1.1].

Limits on Disclosure and Redisclosure of Nonpublic Personal Financial Information

If you collect nonpublic personal financial information from consumers in Alabama, you may only disclose that information to nonaffiliated third parties if you have provided the consumer with an initial notice, an opt-out notice, and a reasonable opportunity to opt-out of the disclosure [1.4]. Additionally, if you receive nonpublic personal financial information from a nonaffiliated financial institution, your disclosure and use of that information is limited [1.5].

Exceptions to Opt-Out Requirements for Disclosure of Nonpublic Personal Financial Information

There are exceptions to the opt-out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing [1.2]. The opt-out requirements do not apply when a licensee provides nonpublic personal financial information to a nonaffiliated third party to perform services for the licensee or functions on the licensee’s behalf, if the licensee provides the initial notice in accordance with Section 5 and enters into a contractual agreement with the third party that prohibits the third party from disclosing or using the information other than to carry out the purposes for which the licensee disclosed the information, including use under an exception in Sections 15 or 16 in the ordinary course of business to carry out those purposes [1.2].

Exceptions to Notice and Opt-Out Requirements for Disclosure of Nonpublic Personal Financial Information for Processing and Servicing Transactions

There are exceptions to notice and opt-out requirements for disclosure of nonpublic personal financial information for processing and servicing transactions [1.3]. The requirements for initial notice, opt-out, and service providers and joint marketing do not apply if the licensee discloses nonpublic personal financial information as necessary to effect, administer or enforce a transaction that a consumer requests or authorizes, or in connection with certain other activities [1.3].

Conclusion

In summary, you can collect financial information from participants in Alabama, but you must comply with the initial notice and opt-out requirements, as well as the limits on disclosure and redisclosure of nonpublic personal financial information. There are exceptions to the opt-out requirements for disclosure of nonpublic personal financial information for service providers and joint marketing, and for processing and servicing transactions.

Source(s):
Jurisdiction

Alabama