HOUSE DOCKET, NO. 3383        FILED ON: 1/18/2013

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 201

The Commonwealth of Massachusetts

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PRESENTED BY:

Thomas P. Conroy

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to the disclosure of financial records.

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PETITION OF:

HOUSE DOCKET, NO. 3383        FILED ON: 1/18/2013

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 201

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 3628 OF 2011-2012.]

The Commonwealth of Massachusetts

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In the Year Two Thousand Thirteen

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An Act relative to the disclosure of financial records.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

Chapter 140D of the General Laws is hereby amended by inserting after section 12, the following section:-

Section 12A. (A) Except as otherwise expressly provided in this chapter, a creditor of an open ended credit plan involving a credit card as defined in section 1 , its officers, employees, agents and directors shall not disclose to any person any financial information relating to a customer. Creditors shall adopt reasonable procedures to assure compliance with this section.

(B) This section shall not prohibit any of the activities listed in this section. This section shall not be construed to require any creditor to make any disclosure not otherwise required by law. This section shall not be construed to require or encourage any creditor to alter any procedures or practices not inconsistent with this section. This section shall not be construed to expand or create any authority in any person or entity other than a creditor. The following actions are required:-

(1) disclosure of information to the customer after proper identification;

(2) disclosure authorized by the customer, provided the disclosure is limited to the scope and purpose that the customer authorizes;

(3) disclosure of information sought by the child support enforcement division pursuant to its authority and obligations under section 5A of chapter 119A, or by an agency of similar function of another state, pursuant to similar authority;

(4) disclosure of information sought by the division of medical assistance pursuant to its authority and obligations under section 23A of chapter 118A;

(5) disclosure sought by the office of student financial assistance or the health and educational finance authority pursuant to its authority and obligations;

(6) the preparation, examination, handling or maintenance of financial records by any officer, employee or agent of a creditor that has custody of the records;

(7) the examination of financial records by a certified public accountant while engaged by the creditor to perform an independent audit;

(8) the disclosure of information to a collection agency, its employees or agents, or to any person engaged by the creditor to assist in recovering an amount owed to the creditor, if such disclosure is made in the furtherance of recovering such amount;

(9) the examination of financial records by, or the disclosure of financial records to, any officer, employee or agent of a regulatory agency for use only in the exercise of that person's duties as an officer, employee or agent;

(10) the publication of information derived from financial records if the information cannot be identified to any particular customer, deposit or account;

(11) the making of reports, disclosures or returns required by federal or state law;

(12) the disclosure of any information permitted to be disclosed under dishonor of negotiable instruments under section 3-502 of chapter 106, section 3-502;

(13) the exchange, in the regular course of business, of credit information between a creditor and a credit reporting agency, provided such exchange is in compliance chapter 93A, and the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq;

(14) the exchange, in the regular course of business, of information between a creditor and an account verification service, provided such exchange is in compliance with chapter 93A, and the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq;

(15) the exchange, in the regular course of business, of information between a creditor and a mercantile agency, provided such exchange is solely for the purpose of reporting to third parties on the credit rating or creditworthiness of any business, and is in compliance with chapter 93A, and the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq;

(16) the exchange of loan information that specifically affects a sale, foreclosure or loan closing, provided such exchange is for the purpose of accomplishing such sale, foreclosure or loan closing;

(17) the disclosure to civil or criminal law enforcement authorities for use in the exercise of such authority's duties, or the sharing of information, within an industry network, of suspected criminal activities;

(18) disclosures requested pursuant to a summons for trustee process under Rule 4.2 of the Massachusetts rules of civil procedure;

(19) disclosure requested pursuant to subpoena, provided that no disclosure shall be made until 10 days after the creditor has notified the customer that financial information has been requested by subpoena. Such notice shall be served by first class mail to the customer at the most recent address known to the creditor. The provisions of this clause shall not apply where the subpoena is issued by or on behalf of a regulatory, criminal or civil law enforcement agency;

(20) disclosure required by order of court;

(21) disclosure of customer financial information among directors, officers, employees or agents of affiliated creditors; provided, that such disclosure is limited to information necessary or appropriate to the fulfillment of any such persons' duties and responsibilities to the creditor or institutions; and provided, further, that such disclosure is made in compliance with chapter 93A, and the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq;

(22) disclosure of customer financial information of one creditor to another creditor in connection with a proposed merger, consolidation, acquisition or other reorganization transaction involving such institution; provided, that no further disclosure is made except in compliance with this section; and provided, further, that such disclosure is made in compliance with chapter 93A, and the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq.

(23) disclosure sought by the department of revenue pursuant to its authority and obligations under chapter 14; and

(25) reports or disclosure of information to the department elder affairs pursuant to chapter 19A.