December 05, 2012

GLB notice bill stalled to next week

A vote on legislation backed by NAFCU that would ease the Gramm-Leach-Bliley Act privacy notice requirement for some institutions was canceled this week, but reports said the bill could be taken up next week under a suspension of House rules.

H.R. 5817, supported in a letter to House leaders earlier this week from NAFCU Executive Vice President of Government Affairs Dan Berger, would exempt institutions whose privacy practices haven't changed in the past year from mailing the annual privacy notice.

Congressional Quarterly quoted Rep. Barney Frank, D-Mass., saying the bill, during preparation for House consideration, was revised to go well beyond its original scope. Frank is the senior Democrat on the House Financial Services Committee.

The report said H.R. 5817, introduced this May by Rep. Blaine Luetkemeyer, R-Mo., has since been amended to excuse state-chartered institutions from the requirement even if they weren't subject to other privacy rules.

Even the original language of H.R. 5817 is opposed by Rep. Joe Barton, R-Texas, though he is also quoted saying he might be willing to see the bill move if electronic disclosures were still required in the absence of a paper notice.