source:
  type: regulation
  id: reg-p-1016.4
  authority: 12 CFR §1016.4 — Initial privacy notice to consumers required (Regulation
    P)
  description: 12 CFR §1016.4 — Initial privacy notice to consumers required.
  coverage_tier: operative
obligations:
- id: reg-p-1016.4-full
  canonical_id: reg-p-1016.4-full
  section: 12 CFR §1016.4 — Initial privacy notice to consumers required
  type: do
  tags:
  - regulator-direct
  - glba-privacy
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: 12 CFR §1016.4 — Initial privacy notice to consumers required (Regulation
      P)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1016.4
    snapshot_id: 4fd2573985ca3eec
    fetched_at: '2026-05-22T18:53:05Z'
    content_hash: sha256:18a5b3727776cd46a02e5dc7140924e79801a853f11a4dcc1b6d0d301b078eb3
    paragraph_quote: '§ 1016.4 Initial privacy notice to consumers required. (a) Initial
      notice requirement. You must provide a clear and conspicuous notice that accurately
      reflects your privacy policies and practices to: (1) Customer. An individual
      who becomes your customer , not later than when you establish a customer relationship
      , except as provided in paragraph (e) of this section; and (2) Consumer. A consumer,
      before you disclose any nonpublic personal information about the consumer to
      any nonaffiliated third party , if you make such a disclosure other than as
      authorized by §§ 1016.14 and 1016.15 of this part. (b) When initial notice to
      a consumer is not required. You are not required to provide an initial notice
      to a consumer under paragraph (a) of this section if: (1) You do not disclose
      any nonpublic personal information about the consumer to any nonaffiliated third
      party , other than as authorized by §§ 1016.14 and 1016.15; and (2) You do not
      have a customer relationship with the consumer. (c) When you establish a customer
      relationship —(1) General rule. You establish a customer relationship when you
      and the consumer enter into a continuing relationship . (2) Special rule for
      loans. You establish a customer relationship with a consumer when you originate
      or acquire the servicing rights to a loan to the consumer for personal, family
      , or household purposes. If you subsequently transfer the servicing rights to
      that loan to another financial institution , the customer relationship transfers
      with the servicing rights. (3) Examples —(i) Examples of establishing customer
      relationship by financial institutions other than credit unions and covered
      entities subject to FTC enforcement jurisdiction. For purposes of this paragraph
      (c)(3)(i), “you” is limited to financial institutions other than credit unions
      and financial institutions described in § 1016.3(l)(3) . You establish a customer
      relationship when the consumer: (A) Opens a credit card account with you ; (B)
      Executes the contract to open a deposit account with you , obtains credit from
      you , or purchases insurance from you ; (C) Agrees to obtain financial, economic,
      or investment advisory services from you for a fee; or (D) Becomes your client
      for the purpose of your providing credit counseling or tax preparation services.
      (ii) Examples of establishing customer relationship by covered entities subject
      to FTC enforcement jurisdiction. For purposes of this paragraph (c)(3)(ii),
      “you” is limited to financial institutions described in § 1016.3(l)(3) of this
      part. You establish a customer relationship when the consumer: (A) Opens a credit
      card account with you ; (B) Executes the contract to obtain credit from you
      or purchases insurance from you ; (C) Agrees to obtain financial, economic,
      or investment advisory services from you for a fee; (D) Becomes your client
      for the purpose of your providing credit counseling or tax preparation services
      or to obtain career counseling while seeking employment with a financial institution
      or the finance, accounting, or audit department of any company (or while employed
      by such a company or financial institution); (E) Provides any personally identifiable
      financial information to you in an effort to obtain a mortgage loan through
      you ; (F) Executes the lease for personal property with you ; (G) Is an obligor
      on an account that you purchased from another financial institution and whom
      you have located and begun attempting to collect amounts owed on the account
      ; or (H) Provides you with the information necessary for you to compile and
      provide access to all of the consumer''s online financial accounts at your Web
      site. (iii) Examples of establishing customer relationship by credit unions.
      For purposes of this paragraph (c)(3)(iii), “you” is limited to a credit union
      . You establish a customer relationship when the consumer: (A) Becomes your
      member under your bylaws; (B) Is a nonmember and opens a credit card account
      with you jointly with a member under your procedures; (C) Is a nonmember and
      executes the contract to open a share or share draft account with you or obtains
      credit from you jointly with a member, including an individual acting as a guarantor;
      (D) Is a nonmember and opens an account with you and you are a credit union
      designated as a low-income credit union ; (E) Is a nonmember and opens an account
      with you pursuant to State law and you are a State -chartered credit union .
      (iv) Examples of loan rule. You establish a customer relationship with a consumer
      who obtains a loan for personal, family , or household purposes when you: (A)
      Originate the loan to the consumer; or (B) Purchase the servicing rights to
      the consumer''s loan. (d) Existing customers. When an existing customer obtains
      a new financial product or service from you that is to be used primarily for
      personal, family , or household purposes, you satisfy the initial notice requirements
      of paragraph (a) of this section as follows: (1) You may provide a revised privacy
      notice, under § 1016.8 of this part, that covers the customer ''s new financial
      product or service; or (2) If the initial, revised, or annual notice that you
      most recently provided to that customer was accurate with respect to the new
      financial product or service, you do not need to provide a new privacy notice
      under paragraph (a) of this section. (e) Exceptions to allow subsequent delivery
      of notice. (1) You may provide the initial notice required by paragraph (a)(1)
      of this section within a reasonable time after you establish a customer relationship
      if: (i) Establishing the customer relationship is not at the customer ''s election;
      or (ii) Providing notice not later than when you establish a customer relationship
      would substantially delay the customer ''s transaction and the customer agrees
      to receive the notice at a later time. (2) Examples of exceptions —(i) Not at
      customer''s election. (A) In the case of financial institutions other than credit
      unions and financial institutions described in § 1016.3(l)(3) , establishing
      a customer relationship is not at the customer ''s election if you acquire a
      customer ''s deposit liability or the servicing rights to a customer ''s loan
      from another financial institution and the customer does not have a choice about
      your acquisition. (B) In the case of financial institutions described in § 1016.3(l)(3)
      , establishing a customer relationship is not at the customer ''s election if
      you acquire a customer ''s loan or the servicing rights from another financial
      institution and the customer does not have a choice about your acquisition.
      (C) In the case of credit unions, establishing a customer relationship is not
      at the customer ''s election if you acquire a customer ''s deposit liability
      from another financial institution and the customer does not have a choice about
      your acquisition. (ii) Substantial delay of customer''s transaction. Providing
      notice not later than when you establish a customer relationship would substantially
      delay the customer ''s transaction when: (A) You and the individual agree over
      the telephone to enter into a customer relationship involving prompt delivery
      of the financial product or service; or (B) You establish a customer relationship
      with an individual under a program authorized by title IV of the Higher Education
      Act of 1965 ( 20 U.S.C. 1070 et seq. ) or similar student loan programs where
      loan proceeds are disbursed promptly without prior communication between you
      and the customer . (iii) No substantial delay of customer''s transaction. Providing
      notice not later than when you establish a customer relationship would not substantially
      delay the customer ''s transaction when the relationship is initiated in person
      at your office or through other means by which the customer may view the notice,
      such as on a Web site. (f) Delivery. When you are required to deliver an initial
      privacy notice by this section, you must deliver it according to § 1016.9 of
      this part. If you use a short-form initial notice for non-customers according
      to § 1016.6(d) of this part, you may deliver your privacy notice according to
      § 1016.6(d)(3). Higher Education Act of 1965'
  judgment: false
