Privacy disclosure notices are
required to be sent annually to members from credit unions and a wide variety
of other businesses. NAFCU supported legislation that would eliminate the
disclosure notice has passed the House on multiple occasions over the past few
years. Substantially similar legislation has been reintroduced in the 114th Congress.
Privacy Notice Confusion Act (H.R. 601): This legislation, identical to what
passed the House in the 113th, was re-introduced in the House on January 28,
2015 by Reps. Blaine Luetkemeyer (R-MO) and Brad Sherman (D-CA). The bill was agreed to by the House with a voice vote under suspension of the rules on April 13, 2015. The bill would eliminate the unnecessary, redundant and costly nnual privacy notice requirement for an institution that:
Do not share information with non-affiliated
third parties; and
time it was disclosed
Does not share information with non-affiliated third parties; and
- Otherwise provides customers access to such most recent disclosure in electronic or other form permitted by regulation.
legislative team is working hard to encourage the Senate pass the legislation and have it signed into law.
In May 2014, the Consumer Financial Protection Bureau (CFPB) proposed a rule containing many of the same elements NAFCU has sought on the legislative front. The CFPB proposal would allow financial institutions to post their annual privacy notices online instead of delivering them individually if they meet a series of conditions including not sharing the customer's nonpublic personal information with nonaffiliated third parties. While this is certainly a positive development, NAFCU will continue to push for statutory changes to the law.
Ensuring credit unions don't need to send redundant privacy notice disclosures in one aspect of NAFCU's five-point plan for regulatory relief. NAFCU will continue to monitor this issue.
The Gramm-Leach-Bliley Act (P.L. 106-102), enacted in 1999, requires financial institutions and a wide variety of other businesses to issue privacy disclosure notices to consumers that detail the institution's privacy policies if it shares customers' non-public personal information with affiliates or third parties.
Some additional requirements of the law include:
This Gramm-Leach-Bliley Act would help eliminate the confusion by exempting institutions whose policies have not changed from this outdated requirement.
As many institutions and consumers are earnestly attempting to "go green" the current requirement stands in stark contrast. The exception would save credit unions valuable staff resources, lower the cost of financial services, and reverse the negative environmental impact caused by such a requirement, while not harming consumers.
Read recent letters from NAFCU to members of Congress on key annual privacy disclosure notices issues that affect credit unions and their members.
10-29-2013 NAFCU letter urging action on S. 635
03-12-2013 NAFCU urging action on H.R. 749
12-12-12 NAFCU letter to Senate urging action on H.R. 5817
12-3-12 Boehner-Pelosi letter in support of H.R. 5817
View all NAFCU Policy Letters
Updated April 2015