Privacy notice and ATM disclosure may be considered
12/11/2012 10:03 am
Credit unions will be watching Washington, D.C. closely this week. Two bills of interest could be considered this week:
H.R. 5817, the Eliminate Privacy Notice Confusion Act, and
S. 3394, legislation to end duplicative ATM disclosure requirements and alter Consumer Financial Protection Bureau (CFPB) privacy rules.
A vote on H.R. 5817 was expected last week. The bill would eliminate repetitive privacy notices that are often ignored by consumers, and enhance consumer protection by ensuring that when a consumer receives a privacy notification, it has significance and is not redundant. A vote was delayed when members of Congress had issues with some language in a revised version of the bill because it was not in the version of the bill that the House passed in the 112th Congress. This language was unrelated to credit unions. S. 3394, which would address ATM disclosure and CFPB privacy issues, could also see action this week. The bill's progress has been held up for many weeks due to procedural issues. Specifically, the ATM and CFPB bill would:
Revise Regulation E to only require ATM fee disclosures to be presented on an ATM's screen, easing the burdensome ATM fee disclosure regulations that have created legal and financial issues for many credit unions
Ensure that groups or individuals that supply information to the CFPB would not waive their right to privacy protections
The bill is needed because at times outside notices on ATMs are being intentionally removed or destroyed, without the financial institution's knowledge, and then pictures are taken of the ATM to show noncompliance with disclosure rules. The privacy improvements contained in the CFPB-addressing portion of the bill have been endorsed by CFPB Director Richard Cordray.
The League will keep credit unions updated on the status of this bill.