Proposed legislation in the U.S. House of Representatives would provide privacy protections to credit union members.
The bill would amend Title V of the Gramm-Leach-Bliley Act (GLBA) to provide exceptions designed to preserve operational flexibility around data retention activities and recognize small financial institution compliance costs, and includes a provision relating to pre-emption of state laws.
In response to the released draft of the bill, America’s Credit Unions, a national trade association representing credit unions, sent a letter to U.S. Reps. French Hill (R-AR), House Financial Services Committee chairman, and Bill Huizenga (R-MI), the bill’s sponsor to express concerns and provide additional recommendations.
“While the proposed bill includes important relief — such as exceptions designed to preserve operational flexibility around data retention activities, recognition of small financial institution compliance costs, and a significant provision relating to preemption of state laws — credit unions are concerned that expansion of the GLBA’s obligations for financial institutions when undertaken alone will contribute to greater burden without the benefit of consistent federal safeguards applying across the wider economy,” Greg Mesack, America’s Credit Unions senior vice president of advocacy, said.
On March 27, the Financial Services Committee requested industry feedback on the discussion draft of the bill.