Certified Regulatory Compliance Manager (CRCM) — Question 201

Annual privacy notices are not required to be given to former customers, including cases where:

Answer options

• A. A deposit account is active
• B. A customer pays a load in full or institution charges off the loan
• C. The institution no longer provides any open-end statements or notices to the customer
• D. None of these

Correct answer: B, C

Explanation

The correct answers, B and C, indicate scenarios where the relationship with the institution has effectively ended, negating the need for annual privacy notices. Option A is incorrect because an active deposit account does require notice, and option D is incorrect as there are valid situations listed in B and C.