March 21, 2013 – NAFCU applauded Senate Banking Committee Financial Institutions Subcommittee Chairman Sherrod Brown, D-Ohio, and Sen. Jerry Moran, R-Kan., for introducing the Senate version of a NAFCU-backed, House-approved privacy notice bill to eliminate a redundant notice requirement for credit unions.
S. 635, the "Privacy Notice Modernization Act," was introduced with bipartisan support.
Similar to H.R. 749, the "Eliminate Privacy Confusion Act" passed by the House March 12, the Senate bill proposes elimination of the requirement for credit unions to mail annual privacy notices to members unless policies are changed, but with the added provision that they be accessible to members online. For credit unions that have no Internet presence – and thus are unable to conduct any disclosures online – it would allow distribution at branch locations.
The aim of both bills – abolishing duplicative and costly annual privacy notices – is one of the priorities outlined in NAFCU's five-point plan for broad-based credit union regulatory relief.
NAFCU President and CEO Fred Becker thanked Brown and his staff for working with the association in offering the bill. He said the bill will "go a long way" to help ease the regulatory burden on financial institutions. "NAFCU looks forward to working with Sens. Brown and Moran to help this bill become law," Becker said.
NAFCU has been steadfast in pressing lawmakers in both chambers on the need to eliminate the redundant privacy notice requirement. NAFCU Vice President of Legislative Affairs Brad Thaler pressed for passage of H.R. 749 ahead of the House voice vote. Less than an hour following House passage, Thaler wrote Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., to urge their support as well.
The new Senate bill has several cosponsors, and NAFCU is working to generate more. Credit unions are encouraged to visit NAFCU's grassroots action center to contact their senators
and urge swift passage.