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As urged by NAFCU, CFPB on Friday proposed a rule change to codify last year's Gramm-Leach-Bliley Act revisions on private notice requirements. The GLBA revisions were signed into law by President Barack Obama in December as part of a transportation authorization bill.

"We welcome this CFPB proposal to conform its privacy notice rule with last year's Gramm-Leach-Bliley Act revisions, long sought by NAFCU," said NAFCU Director of Regulatory Affairs Alexander Monterrubio. "We appreciated CFPB's assurance in January that it would follow the spirit of this statutory change, but today's proposal is a step in the right direction toward streamlining and providing credit unions clarity on their privacy notification obligations.

"NAFCU will continue to evaluate the proposal and work closely with the bureau during the rulemaking process," he continued. "We also continue to urge the bureau to more effectively exercise its authority under Section 1022 of the Dodd-Frank Act to exempt credit unions from its rules."

The law clarified that consumers will receive privacy notices after opening a new account and when their providers' privacy policies change – a change from the previous annual-notice requirement.

After NAFCU urged CFPB in December to implement the changes swiftly, the bureau responded that the statutory changes to annual privacy notice requirements would be "effective immediately" to avoid confusion with superseded requirements.

In January, NCUA sent a Letter to Credit Unions confirming that credit unions no longer needed to send members annual privacy notices if they qualify for the exception.