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NAFCU and six other financial trades yesterday wrote a Senate Commerce, Science and Transportation subcommittee on what would make for good data security legislation and remind of the strict data protection and notification standards already in place for financial institutions.

The Subcommittee on Consumer Protection, Product Safety, Insurance, and Data Security is holding a hearing Thursday on, "Getting it Right on Data Breach and Notification Legislation in the 114th Congress." To serve as a guide for drafting legislation, the financial organizations recommended to subcommittee Chairman Jerry Moran, R-Kan., and Ranking Member Richard Blumenthal, D-Conn., several principles, among them:

• strong national data protection and notification standards with enforcement provisions;
• recognition of financial institutions' robust data protection and notification standards under the Gramm-Leach-Bliley Act; and
• quick notification to consumers if a breach has occurred and authority for banks and credit unions to inform their customers and members about the breach and where it took place.

The groups sent a similar letter last month to the House Commerce Subcommittee on Commerce, Manufacturing, and Trade ahead of a hearing held on the data security issue.

Tuesday's letter was signed by NAFCU, CUNA, American Bankers Association, Independent Community Bankers of America, Financial Services Roundtable, Consumer Bankers Association and The Clearing House.