Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Annual disclosures burden consumers FIs CUNA
WASHINGTON (2/22/12)--Sending an annual privacy notice to every consumer with whom a financial institution has a continuing relationship is confusing to the consumer and costly and burdensome to the financial institution, the Credit Union National Association CUNA) told the Consumer Financial Protection Bureau (CFPB).

Commenting on a CFPB interim final rule on Regulation P, which requires the annual disclosures, CUNA wrote that when credit union members or bank customers receive the same, unchanged information from their institution on an annual basis, they may forego reading an actual notice of change when it arrives in the mail.  They could be lulled into an assumption that the change notice is just another routine disclosure.

CUNA asked the CFPB to remove the annual requirement from Reg P, instead replacing it with a requirement that a new notice be sent only when there is a change in the institution's privacy policy. This would not affect a financial institution's existing responsibility to provide a privacy notice at the time the member/customer relationship is commenced.

An equally important reason to remove the requirement, CUNA underscored in its letter, is to "help to relieve the regulatory burden on financial institutions."

CUNA stated, "This is particularly true for small institutions for which mailing an annual privacy notice is often costly, posing a significant regulatory burden."

CUNA encouraged the CFPB to seek, if needed, statutory authority to remove the annual disclosure requirement.


RSS





print
News Now LiveWire
CUNA: CUNA offices closed through Friday, News Now returns Monday http://t.co/a5xbLzQKDj
12 24 ago
Reminder: @CUNA's Madison, D.C. offices will be closed through Friday, open again on Monday. #NewsNow will publish Monday.
12 23 ago
MI dentist to match @CUDirect's $20K to @HurleyMedical as a result of #20for20 online voting http://t.co/hqmIc9LpK1 @CMNHospitals
12 23 ago
New #creditunion chartered in St. Louis - #LutheranFCU - by @TheNCUA http://t.co/faPfANGS0P. Only 3rd new FCU charter this year.
12 23 ago
Don't get hacked during the holidays-use these tips from @CUNA http://t.co/jEqxni6NhO #StoptheDataBreaches http://t.co/woIxPOIyys
12 23 ago