Thaler urges action on privacy notices
Sept. 20, 2013 – NAFCU Vice President of Legislative Affairs Brad Thaler on Thursday urged the chairman and ranking member of the Senate Banking Committee to act on legislation that would provide some relief from a yearly privacy notice requirement under the Gramm-Leach-Bliley Act.
“The compliance burden credit unions face is at an all-time high,” Thaler wrote, “and embracing this practical idea would help relieve an onerous requirement on credit unions while allowing them to redirect resources to serve their members.”
The privacy notice requirement is set by the Gramm-Leach-Bliley Act. It requires institutions to mail out their privacy policies each year. S. 635, the “Privacy Notice Modernization Act,” introduced by Sens. Sherrod Brown, D-Ohio, and Mike Johanns, R-Neb., would provide an exemption for institutions whose policies don’t change each year. They would still be required to make the policies available over the Internet or other means prescribed by regulation.
CFPB Director Richard Cordray, in last week’s House Financial Services Committee hearing on the bureau’s semiannual report, said he supports the bill’s objectives. He said added disclosures sometimes may not convey benefits, and he said the bureau is interested in seeing consumers receive information they need to understand the terms of their agreements with financial service providers.