True or False: Providing financial records that are not requested or required by a subpoena or summons may subject the credit union to liability for violating a member's privacy rights.

The statement is true because providing financial records that are not specifically requested or required by a subpoena or summons can indeed lead to potential liability for a credit union concerning a member's privacy rights. Financial institutions, including credit unions, are obligated to protect the privacy of their members' financial information. When they disclose information without an appropriate legal compulsion, it can violate privacy laws, such as the Gramm-Leach-Bliley Act or state privacy regulations.

Disclosure without consent or proper legal directive can expose the institution to legal risks, including lawsuits from members for breach of privacy or trust. The expectation of confidentiality is a fundamental aspect of the relationship between a member and a financial institution. Violating this expectation, particularly when the institution has not been legally compelled to do so, creates a significant risk of liability. Hence, the answer is correct in affirming the importance of member privacy rights in financial dealings.