The .S. House debated the Eliminate Privacy Notice Confusion Act
H.R. 5817 on Monday and a recorded vote is expected on Tuesday Dec. 4. The bi has 41 co-sponsors and states that financial institutions that provide nonpublic personal information only in accordance with the provisions of the Graham Leach Bliley Act, that do not share it with affiliates, and that have not changed their policy and practice since disclosing the policy, shall not be required to send annual privacy notifications to their members or customers. State-licensed credit unions and other financial institutions would also be shielded from Graham Leach Bliley disclosure requirements, provided their respective states have their own privacy regulations on the books, under the terms of the bill.
Every year credit unions are required to send millions of privacy notices to their members, most of which go unread and even unopened. Since 2001, credit unions have sent over one billion privacy notices to members, averaging over 87 million notices a year. Credit unions must strictly follow an ever increasing number of rules and regulations. As a result, streamlining outdated or burdensome regulations is a very important aspect in providing regulatory relief. Under current law, the
Gramm-Leach-Bliley Act requires a financial institution to send an annual privacy notification on information sharing practices to its members or customers.
H.R. 5817 would amend the Gramm-Leach-Bliley Act to require a privacy notification be sent to a member or customer when the policy changes, rather than a redundant annual notice that is often overlooked.
H.R. 5817 would provide common sense regulatory relief in the area of privacy notification requirements.
The League has learned that this week H.R. 5817 will be heard on the floor of the U.S. House of Representatives, giving lawmakers an opportunity to offer regulatory relief to credit unions. While this legislation is common sense, and should pass the House floor, letting lawmakers know just how important it is would help ensure the vote is so overwhelmingly positive and send a message to the Senate. Please contact your lawmakers and let them know that H.R. 5817 is a common sense approach to regulatory relief.
Click here to to send a message to your lawmaker. Click on the "My Advocacy" button.