source:
  type: regulation
  id: reg-p-1016.3
  authority: 12 CFR §1016.3 — Definitions (Regulation P)
  description: 12 CFR §1016.3 — Definitions.
  coverage_tier: context
obligations:
- id: reg-p-1016.3-full
  canonical_id: reg-p-1016.3-full
  section: 12 CFR §1016.3 — Definitions
  type: reference
  tags:
  - regulator-direct
  - glba-privacy
  - corpus-expansion
  - tier-context
  primary_source:
    tier: 1
    authority: 12 CFR §1016.3 — Definitions (Regulation P)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1016.3
    snapshot_id: 077e078d4882b812
    fetched_at: '2026-06-17T20:38:42Z'
    content_hash: sha256:502bdf0abc1721f8873bfbf67a24c9e3334b09ed1ff863a5d8baeeb89d65d75b
    paragraph_quote: '§ 1016.3 Definitions. As used in this part, unless the context
      requires otherwise: (a) (1) Affiliate means any company that controls, is controlled
      by, or is under common control with another company . (2) Examples in the case
      of a credit union. (i) 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 . (ii) An affiliate of a federally-insured, state-chartered
      credit union is a company that is controlled by the credit union . (b) (1) Clear
      and conspicuous means that a notice is reasonably understandable and designed
      to call attention to the nature and significance of the information in the notice.
      (2) Examples —(i) Reasonably understandable. You make your notice reasonably
      understandable if you: (A) Present the information in the notice in clear, 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 in it 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 size, style, and graphic devices, such as
      shading or sidebars, when you combine your notice with other information. (iii)
      Notices on Web sites. If you provide a notice on a Web site, you design your
      notice to call attention to the nature and significance of the information in
      it if you use text or visual cues to encourage scrolling down the page if necessary
      to view the entire notice and ensure that other elements on the Web site (such
      as text, graphics, hyperlinks, or sound) do not distract attention from the
      notice, and you either: (A) Place the notice on a screen that consumers frequently
      access, such as a page on which transactions are conducted; or (B) Place a link
      on a screen that consumers frequently access, such as a page on which transactions
      are conducted, that connects directly to the notice and is labeled appropriately
      to convey the importance, nature, and relevance of the notice. (c) Collect means
      to obtain information that you organize or can retrieve by the name of an individual
      or by identifying number, symbol, or other identifying particular assigned to
      the individual, irrespective of the source of the underlying information. (d)
      Company means any corporation, limited liability company , business trust, general
      or limited partnership, association, or similar organization. (e) (1) Consumer
      means an individual who obtains or has obtained a financial product or service
      from you that is to be used primarily for personal, family, or household purposes,
      or that individual''s legal representative. (2) Examples in the case of a financial
      institution other than a credit union. For purposes of this paragraph (e)(2),
      “you” is limited to financial institutions other than credit unions. (i) An
      individual who applies to you for credit for personal, family, or household
      purposes is a consumer of a financial service , regardless of whether the credit
      is extended. (ii) An individual who provides nonpublic personal information
      to you in order to obtain a determination about whether he or she may qualify
      for a loan to be used primarily for personal, family, or household purposes
      is a consumer of a financial service , regardless of whether the loan is extended.
      (iii) An individual who provides nonpublic personal information to you in connection
      with obtaining or seeking to obtain financial, investment, or economic advisory
      services is a consumer regardless of whether you establish a continuing advisory
      relationship. (iv) If you hold ownership or servicing rights to an individual''s
      loan that is used primarily for personal, family, or household purposes, the
      individual is your consumer, even if you hold those rights in conjunction with
      one or more other institutions. (The individual is also a consumer with respect
      to the other financial institutions involved.) An individual who has a loan
      in which you have ownership or servicing rights is your consumer, even if you
      , or another institution with those rights, hire an agent to collect on the
      loan. (v) An individual who is a consumer of another financial institution is
      not your consumer solely because you act as agent for, or provide processing
      or other services to, that financial institution . (vi) An individual is not
      your consumer solely because he or she has designated you as trustee for a trust.
      (vii) An individual is not your consumer solely because he or she is a beneficiary
      of a trust for which you are a trustee. (viii) An individual is not your consumer
      solely because he or she is a participant or a beneficiary of an employee benefit
      plan that you sponsor or for which you act as a trustee or fiduciary. (3) Examples
      in the case of a credit union. For purposes of this paragraph (e)(3), “you”
      is limited to credit unions. (i) An individual who provides nonpublic personal
      information to you in connection with obtaining or seeking to obtain credit
      union membership is your consumer regardless of whether you establish a customer
      relationship . (ii) An individual who provides nonpublic personal information
      to you in connection with using your ATM is your consumer. (iii) If you hold
      ownership or servicing rights to an individual''s loan, the individual is your
      consumer, even if you hold those rights in conjunction with one or more financial
      institutions . The individual is also a consumer with respect to the other financial
      institutions involved. This applies even if you , or another financial institution
      with those rights, hire an agent to collect on the loan or to provide processing
      or other services. (iv) An individual who is a consumer of another financial
      institution is not your consumer solely because you act as agent for, or provide
      processing or other services to, that financial institution . (v) An individual
      is not your consumer solely because he or she is a participant or a beneficiary
      of an employee benefit plan that you sponsor or for which you act as a trustee
      or fiduciary. (f) Consumer reporting agency has the same meaning as in section
      603(f) of the Fair Credit Reporting Act ( 15 U.S.C. 1681a(f) ). (g) 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 determined by the applicable prudential
      regulator (as defined in 12 U.S.C. 5481(24) ), if any. (4) Example in the case
      of credit unions. A credit union is presumed to have a controlling influence
      over the management or policies of a CUSO, if the CUSO is 67% owned by credit
      unions. (h) Credit union means a Federal or state-chartered credit union that
      the National Credit Union Share Insurance Fund insures. (i) Customer means a
      consumer who has a customer relationship with you . (j) (1) Customer relationship
      means a continuing relationship between a consumer and you under which you provide
      one or more financial products or services to the consumer that are to be used
      primarily for personal, family, or household purposes. As noted in the examples
      , and for purposes of this part only, in the case of a credit union , a customer
      relationship will exist between a credit union and certain consumers that are
      not the credit union ''s members. (2) Examples in the case of financial institutions
      other than credit unions and covered entities subject to FTC enforcement jurisdiction.
      For purposes of this paragraph (j)(2), “you” is limited to financial institutions
      other than credit unions and financial institutions described in paragraph (l)(3)
      of this section. (i) Continuing relationship. A consumer has a continuing relationship
      with you if the consumer: (A) Has a deposit or investment account with you ;
      (B) Obtains a loan from you ; (C) Has a loan for which you own the servicing
      rights; (D) Purchases an insurance product from you ; (E) Holds an investment
      product through you , such as when you act as a custodian for securities or
      for assets in an Individual Retirement Arrangement; (F) Enters into an agreement
      or understanding with you whereby you undertake to arrange or broker a home
      mortgage loan for the consumer; (G) Enters into a lease of personal property
      with you ; or (H) Obtains financial, investment, or economic advisory services
      from you for a fee. (ii) No continuing relationship. A consumer does not, however,
      have a continuing relationship with you if: (A) The consumer obtains a financial
      product or service only in isolated transactions, such as using your ATM to
      withdraw cash from an account at another financial institution or purchasing
      a cashier''s check or money order; (B) You sell the consumer''s loan and do
      not retain the rights to service that loan; or (C) You sell the consumer airline
      tickets, travel insurance, or traveler''s checks in isolated transactions. (3)
      Examples in the case of covered entities subject to FTC enforcement jurisdiction.
      For purposes of this paragraph (j)(3), “you” is limited to financial institutions
      described in paragraph (l)(3) of this section. (i) Continuing relationship.
      A consumer has a continuing relationship with you if the consumer: (A) Has a
      credit or investment account with you ; (B) Obtains a loan from you ; (C) Purchases
      an insurance product from you ; (D) Holds an investment product through you
      , such as when you act as a custodian for securities or for assets in an Individual
      Retirement Arrangement; (E) Enters into an agreement or understanding with you
      whereby you undertake to arrange or broker a home mortgage loan, or credit to
      purchase a vehicle, for the consumer; (F) Enters into a lease of personal property
      on a non-operating basis with you ; (G) Obtains financial, investment, or economic
      advisory services from you for a fee; (H) Becomes your client for the purpose
      of obtaining tax preparation or credit counseling services from you ; (I) Obtains
      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 financial institution or department of any company); (J) Is obligated
      on an account that you purchase from another financial institution , regardless
      of whether the account is in default when purchased, unless you do not locate
      the consumer or attempt to collect any amount from the consumer on the account;
      (K) Obtains real estate settlement services from you ; or (L) Has a loan for
      which you own the servicing rights. (ii) No continuing relationship. A consumer
      does not, however, have a continuing relationship with you if: (A) The consumer
      obtains a financial product or service from you only in isolated transactions,
      such as using your ATM to withdraw cash from an account at another financial
      institution ; purchasing a money order from you ; cashing a check with you ;
      or making a wire transfer through you ; (B) You sell the consumer''s loan and
      do not retain the rights to service that loan; (C) You sell the consumer airline
      tickets, travel insurance, or traveler''s checks in isolated transactions; (D)
      The consumer obtains one-time personal or real property appraisal services from
      you ; or (E) The consumer purchases checks for a personal checking account from
      you . (4) Examples in the case of a credit union. (i) Continuing relationship.
      A consumer has a continuing relationship with a credit union if the consumer:
      (A) Is a member as defined in the credit union ''s bylaws; (B) Is a nonmember
      who has a share, share draft, or credit card account with the credit union jointly
      with a member; (C) Is a nonmember who has a loan that the credit union services;
      (D) Is a nonmember who has an account with a credit union that has been designated
      as a low-income credit union ; or (E) Is a nonmember who has an account in a
      federally-insured, state-chartered credit union pursuant to state law. (ii)
      No continuing relationship. A consumer does not, however, have a continuing
      relationship with a credit union if the consumer is a nonmember and: (A) The
      consumer only obtains a financial product or service in isolated transactions,
      such as using the credit union ''s ATM to withdraw cash from an account maintained
      at another financial institution or purchasing travelers checks; or (B) The
      credit union sells the consumer''s loan and does not retain the rights to service
      that loan. (k) Federal functional regulator means: (1) The Board of Governors
      of the Federal Reserve System ; (2) The Office of the Comptroller of the Currency
      ; (3) The Board of Directors of the Federal Deposit Insurance Corporation ;
      (4) The National Credit Union Administration Board; and (5) The Securities and
      Exchange Commission . (l) (1) Except for entities described in paragraph (l)(3)
      of this section, financial institution means any institution the business of
      which is engaging in activities that are financial in nature or incidental to
      such financial activities as described in section 4(k) of the Bank Holding Company
      Act of 1956 ( 12 U.S.C. 1843(k) ). (2) For purposes of paragraph (l)(1) of this
      section, financial institution does not include: (i) Any person or entity with
      respect to any financial activity that is subject to the jurisdiction of the
      Commodity Futures Trading Commission under the Commodity Exchange Act ( 7 U.S.C.
      1 et seq.; ) (ii) The Federal Agricultural Mortgage Corporation or any entity
      chartered and operating under the Farm Credit Act of 1971 ( 12 U.S.C. 2001 et
      seq.; ) or (iii) Institutions chartered by Congress specifically to engage in
      securitizations, secondary market sales (including sales of servicing rights),
      or similar transactions related to a transaction of a consumer, as long as such
      institutions do not sell or transfer nonpublic personal information to a nonaffiliated
      third party . (3) (i) Special definition for entities subject to the Federal
      Trade Commission ''s enforcement jurisdiction. In the case of an entity described
      in section 505(a)(7) of the GLB Act (other than such an entity described in
      section 504(a)(1)(C) of that Act), financial institution means any institution
      the business of which is engaging in financial activities as described in section
      4(k) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1843(k) ). For purposes
      of this paragraph (l)(3), an institution that is significantly engaged in financial
      activities is a financial institution . (ii) Examples of financial institution.
      For purposes of this paragraph (l)(3): (A) A retailer that extends credit by
      issuing its own credit card directly to consumers is a financial institution
      because extending credit is a financial activity listed in 12 CFR 225.28 (b)(1)
      and referenced in section 4(k)(4)(F) of the Bank Holding Company Act and issuing
      that extension of credit through a proprietary credit card demonstrates that
      a retailer is significantly engaged in extending credit. (B) A personal property
      or real estate appraiser is a financial institution because real and personal
      property appraisal is a financial activity listed in 12 CFR 225.28 (b)(2)(i)
      and referenced in section 4(k)(4)(F) of the Bank Holding Company Act. (C) An
      automobile dealership that is not described in section 1029(a) of the Dodd-Frank
      Act ( 12 U.S.C. 5519(a) ) and that, as a usual part of its business, leases
      automobiles on a nonoperating basis for longer than 90 days is a financial institution
      with respect to its leasing business because leasing personal property on a
      nonoperating basis where the initial term of the lease is at least 90 days is
      a financial activity listed in 12 CFR 225.28 (b)(3) and referenced in section
      4(k)(4)(F) of the Bank Holding Company Act. (D) A career counselor that specializes
      in providing career counseling services to individuals currently employed by
      or recently displaced from a financial organization, individuals who are seeking
      employment with a financial organization, or individuals who are currently employed
      by or seeking placement with the finance, accounting or audit departments of
      any company is a financial institution because such career counseling activities
      are financial activities listed in 12 CFR 225.28 (b)(9)(iii) and referenced
      in section 4(k)(4)(F) of the Bank Holding Company Act. (E) A business that prints
      and sells checks for consumers, either as its sole business or as one of its
      product lines, is a financial institution because printing and selling checks
      is a financial activity that is listed in 12 CFR 225.28 (b)(10)(ii) and referenced
      in section 4(k)(4)(F) of the Bank Holding Company Act. (F) A business that regularly
      wires money to and from consumers is a financial institution because transferring
      money is a financial activity referenced in section 4(k)(4)(A) of the Bank Holding
      Company Act and regularly providing that service demonstrates that the business
      is significantly engaged in that activity. (G) A check cashing business is a
      financial institution because cashing a check is exchanging money, which is
      a financial activity listed in section 4(k)(4)(A) of the Bank Holding Company
      Act. (H) An accountant or other tax preparation service that is in the business
      of completing income tax returns is a financial institution because tax preparation
      services is a financial activity listed in 12 CFR 225.28 (b)(6)(vi) and referenced
      in section 4(k)(4)(G) of the Bank Holding Company Act. (I) A business that operates
      a travel agency in connection with financial services is a financial institution
      because operating a travel agency in connection with financial services is a
      financial activity listed in 12 CFR 211.5 (d)(15) and referenced in section
      4(k)(4)(G) of the Bank Holding Company Act. (J) An entity that provides real
      estate settlement services is a financial institution because providing real
      estate settlement services is a financial activity listed in 12 CFR 225.28 (b)(2)(viii)
      and referenced in section 4(k)(4)(F) of the Bank Holding Company Act. (K) A
      mortgage broker is a financial institution because brokering loans is a financial
      activity listed in 12 CFR 225.28 (b)(1) and referenced in section 4(k)(4)(F)
      of the Bank Holding Company Act. (L) An investment advisory company and a credit
      counseling service are each financial institutions because providing financial
      and investment advisory services are financial activities referenced in section
      4(k)(4)(C) of the Bank Holding Company Act. (iii) For purposes of this paragraph
      (l)(3), financial institution does not include: (A) Any person or entity with
      respect to any financial activity that is subject to the jurisdiction of the
      Commodity Futures Trading Commission under the Commodity Exchange Act ( 7 U.S.C.
      1 et seq.; ) (B) The Federal Agricultural Mortgage Corporation or any entity
      chartered and operating under the Farm Credit Act of 1971 ( 12 U.S.C. 2001 et
      seq.; ) or (C) Institutions chartered by Congress specifically to engage in
      securitizations, secondary market sales (including sales of servicing rights)
      or similar transactions related to a transaction of a consumer, as long as such
      institutions do not sell or transfer nonpublic personal information to a nonaffiliated
      third party other than as permitted by §§ 1016.14 and 1016.15 of this part.
      (D) Entities that engage in financial activities but that are not significantly
      engaged in those financial activities. (iv) Examples of entities that are not
      significantly engaged in financial activities. (A) A retailer is not a financial
      institution if its only means of extending credit are occasional “lay away”
      and deferred payment plans or accepting payment by means of credit cards issued
      by others. (B) A retailer is not a financial institution merely because it accepts
      payment in the form of cash, checks, or credit cards that it did not issue.
      (C) A merchant is not a financial institution merely because it allows an individual
      to “run a tab.” (D) A grocery store is not a financial institution merely because
      it allows individuals to whom it sells groceries to cash a check, or write a
      check for a higher amount than the grocery purchase and obtain cash in return.
      (m) (1) Financial product or service means any product or service that a financial
      holding company could offer by engaging in an activity that is financial in
      nature or incidental to such a financial activity under section 4(k) of the
      Bank Holding Company Act of 1956 ( 12 U.S.C. 1843(k) ). (2) Special definition
      for entities subject to the Federal Trade Commission ''s enforcement jurisdiction.
      In the case of an entity described in section 505(a)(7) of the GLB Act (other
      than such an entity described in section 504(a)(1)(C) of that Act), financial
      product or service means any product or service that a financial holding company
      could offer by engaging in a financial activity under section 4(k) of the Bank
      Holding Company Act of 1956 ( 12 U.S.C. 1843(k) ). (3) Financial service includes
      your evaluation or brokerage of information that you collect in connection with
      a request or an application from a consumer for a financial product or service.
      (n) Member means a consumer who is a member of a credit union , as defined in
      the credit union ''s bylaws. (o) (1) Nonaffiliated third party means any person
      except: (i) Your affiliate; or (ii) A person employed jointly by you and any
      company that is not your affiliate (but nonaffiliated third party includes the
      other company that jointly employs the person). (2) Nonaffiliated third party
      includes, for financial institutions other than credit unions, any company that
      is an affiliate solely by virtue of your or your affiliate''s direct or indirect
      ownership or control of the company in conducting merchant banking or investment
      banking activities of the type described in section 4(k)(4)(H) or insurance
      company investment activities of the type described in section 4(k)(4)(I) of
      the Bank Holding Company Act of 1956 ( 12 U.S.C. 1843(k)(4)(H) and (I)). (p)
      (1) Nonpublic personal information means: (i) Personally identifiable financial
      information; and (ii) Any list, description, or other grouping of consumers
      (and publicly available information pertaining to them) that is derived using
      any personally identifiable financial information that is not publicly available.
      (2) Nonpublic personal information does not include: (i) Publicly available
      information, except as included on a list described in paragraph (p)(1)(ii)
      of this section; or (ii) Any list, description, or other grouping of consumers
      (and publicly available information pertaining to them) that is derived without
      using any personally identifiable financial information that is not publicly
      available. (3) Examples of lists. (i) Nonpublic personal information includes
      any list of individuals'' names and street addresses that is derived in whole
      or in part using personally identifiable financial information that is not publicly
      available, such as account numbers. (ii) Nonpublic personal information does
      not include any list of individuals'' names and addresses that contains only
      publicly available information, is not derived in whole or in part using personally
      identifiable financial information that is not publicly available, and is not
      disclosed in a manner that indicates that any of the individuals on the list
      is a consumer of a financial institution . (q) (1) Personally identifiable financial
      information means any information: (i) A consumer provides to you to obtain
      a financial product or service from you ; (ii) About a consumer resulting from
      any transaction involving a financial product or service between you and a consumer;
      or (iii) You otherwise obtain about a consumer in connection with providing
      a financial product or service to that consumer. (2) Examples —(i) Information
      included. Personally identifiable financial information includes: (A) Information
      a consumer provides to you on an application to obtain a loan, a credit card,
      a credit union membership, or other financial product or service; (B) Account
      balance information, payment history, overdraft history, and credit or debit
      card purchase information; (C) The fact that an individual is or has been one
      of your customers or has obtained a financial product or service from you ;
      (D) Any information about your consumer if it is disclosed in a manner that
      indicates that the individual is or has been your consumer; (E) Any information
      that a consumer provides to you or that you or your agent otherwise obtain in
      connection with collecting on, or servicing, a loan or a credit account; (F)
      Any information you collect through an internet “cookie” (an information collecting
      device from a Web server); and (G) Information from a consumer report. (ii)
      Information not included. Personally identifiable financial information does
      not include: (A) A list of names and addresses of customers of an entity that
      is not a financial institution ; and (B) Information that does not identify
      a consumer, such as aggregate information or blind data that does not contain
      personal identifiers such as account numbers, names, or addresses. (r) (1) Publicly
      available information means any information that you have a reasonable basis
      to believe is lawfully made available to the general public from: (i) Federal,
      state, or local government records; (ii) Widely distributed media ; or (iii)
      Disclosures to the general public that are required to be made by Federal, state,
      or local law. (2) Reasonable basis. You have a reasonable basis to believe that
      information is lawfully made available to the general public if you have taken
      steps to determine: (i) That the information is of the type that is available
      to the general public; and (ii) Whether an individual can direct that the information
      not be made available to the general public and, if so, that your consumer has
      not done so. (3) Examples —(i) Government records. Publicly available information
      in government records includes information in government real estate records
      and security interest filings. (ii) Widely distributed media. Publicly available
      information from widely distributed media includes information from a telephone
      book, a television or radio program, a newspaper, or a Web site that is available
      to the general public on an unrestricted basis. A Web site is not restricted
      merely because an Internet service provider or a site operator requires a fee
      or a password, so long as access is available to the general public. (iii) Reasonable
      basis. (A) You have a reasonable basis to believe that mortgage information
      is lawfully made available to the general public if you have determined that
      the information is of the type included on the public record in the jurisdiction
      where the mortgage would be recorded. (B) You have a reasonable basis to believe
      that an individual''s telephone number is lawfully made available to the general
      public if you have located the telephone number in the telephone book or the
      consumer has informed you that the telephone number is not unlisted. (s) (1)
      You means a financial institution for which the Bureau has rulemaking authority
      under section 504(a)(1)(A) of the GLB Act ( 15 U.S.C. 6804(a)(1)(A) ). (2) You
      does not include: (i) A financial institution that is a person described in
      section 1029(a) of the Consumer Financial Protection Act of 2010 ( 12 U.S.C.
      5519(a) ); (ii) A financial institution or other person subject to the jurisdiction
      on the Commodity Futures Trading Commission under 7 U.S.C. 7b-2 ; (iii) A broker
      or dealer that is registered under the Securities Exchange Act of 1934 ( 15
      U.S.C. 78a et seq.; ) (iv) A registered investment adviser, properly registered
      by or on behalf of either the Securities Exchange Commission or any State, with
      respect to its investment advisory activities and its activities incidental
      to those investment advisory activities; (v) An investment company that is registered
      under the Investment Company Act of 1940 ( 15 U.S.C. 80a-1 et seq.; ) or (vi)
      An insurance company , with respect to its insurance activities and its activities
      incidental to those insurance activities, that is subject to supervision by
      a State insurance regulator. [ 76 FR 79028 , Dec. 21, 2011, as amended by CFPB-2016-0032,
      83 FR 40958 , Aug. 17, 2018]'
  judgment: false
