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NAFCU, with six other financial services trade groups, set the record straight on banks' and credit unions' current data security obligations in a letter to House leaders Wednesday and urged them to move forward with a national data security standard akin to one outlined in draft legislation put forth by Reps. Blaine Luetkemeyer, R-Mo., and Carolyn Maloney, D-N.Y.

"[B]anks and credit unions have long been subject to regulatory mandates that set rigorous data protection and breach notification practices for financial institutions to follow," the trades wrote in a letter to House Speaker Paul Ryan, R-Wis., and House Minority Leader Nancy Pelosi, D-Calif. "In fact, federal regulators describe these notification obligations as 'an affirmative duty' for which compliance is demanded, and are considered to be an element of fundamental Safety and Soundness for the overall banking system."

The groups explained that the draft legislation from Luetkemeyer and Maloney would "raise the bar so that all companies protect data similar to how banks and credit unions protect their data, and create a common-sense standard to ensure consumers receive timely notice when a breach does occur."

The draft bill would also recognize the strict standards banks and credit unions already adhere to and would require "companies that are not subject to any current federal requirement regarding breach notification to tell consumers when their information has been compromised."

"Consumers are tired of having their information compromised, and they should be—the stakes are too high," the letter concluded. "The time for a national data security and notification standard is now, and the draft legislation set forth by Chairman Luetkemeyer and Congresswoman Maloney achieves that objective."

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

The letter was also sent to all members of the House.