BIRMINGHAM, Ala. (2/22/08)--The Alabama Credit Union League (ACUL) has introduced a bill in the state legislature aimed at protecting consumers’ financial data. The legislation, introduced by State Rep. Tammy Irons (D) and State Sen. Parker Griffith (D), contains three provisions:
* Entities that experience a data breach would be required to notify consumers; * Sensitive consumer financial data, such as the content of a magnetic stripe on a plastic card, personal identification number or card validation code, cannot be retained; and * Any entity that experiences a breach and holds prohibited data must reimburse the issuing financial institution for the cost of reissuing cards or taking steps to protect accounts.
“The bill protects consumers and ensures a fair environment for everyone, because when someone other than the consumer’s financial institution stores all the keys to a person’s account, it creates problems,” said ACUL President/CEO Gary Wolter. “It is not a question of if there will be a serious breach, only when and how bad it will be.” “Credit unions go to great lengths to ensure the security of their members’ data and account information, but other parties also must take responsibility,” he added.