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Credit unions back new privacy notice bill

Credit unions have seen three bills introduced in Washington, D.C. that would have an affect on them. Reps. Blaine Luetkemeyer (R-MO) and Brad Sherman (D-CA) introduced "The Eliminate Privacy Notice Confusion Act," which would make significant improvements to privacy notices to consumers.
 
CUNA supports the bill which would eliminate repetitive privacy notices that are often ignored by consumers. By eliminating a requirement that the notices be sent annually, and requiring them only to be sent when the privacy policy of a financial institution has changed, the notices become more meaningful for consumers.
 
The House unanimously passed an identical bill before the 112th Congress adjourned, but the Senate had not acted on the legislation. Therefore, the bill must be re-introduced for consideration in both chambers this year.
 
CUNA President/CEO Bill Cheney says that "consumers are rightfully concerned about the protection of their personal financial information, and it is important for them to understand how their financial institutions handle this information." However, Cheney warned, under current rules, credit unions alone have sent an estimated 1 billion annual privacy notifications to members since 2001.
 
Two key pieces of legislation were also introduced this week including a bill that would address the credit union member business lending (MBL) cap, and another to improve credit unions' access to secondary capital. (See today's News Now for more on that development.

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