ALEXANDRIA, Va. — NCUA informed a Hawaii law firm that its regulations do not pre-empt the Hawaii Financial Abuse Act that requires federal credit unions to report suspected financial abuse of an elder.
The Aug. 6 legal opinion (07-0745) states that not only are federal credit unions not exempt, but that federal consumer privacy laws do allow for the disclosures provided for in the state law.
Hawaii state law requires financial institutions to report suspected financial abuse against an "elder," someone age 62 or older. The suspected abuse must be reported to Hawaii's Department of Human Services. If the DHS does not have jurisdiction, the institution is required to then notify the police.
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The Gramm-Leach-Bliley Act generally prohibits disclosing nonpublic personal information about a member to a nonaffiliated third party unless the institution first provides the member notice and a "reasonable opportunity" to opt out, and the member does not opt out. "Neither GLBA nor the Federal Credit Union Act permit NCUA to preempt a state law that requires FCUs to disclose nonpublic personal information. To the contrary, the requirement for notice to members and opting out do not apply when FCUs disclose nonpublic personal information to protect against or prevent fraud, unauthorized transactions, claims, other liability, or to comply with state law."
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