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
Cheney editorial CUs need help in data theft dealings
WASHINGTON (5/5/11)—While credit unions stand ready to help their members deal with the aftereffects of data breaches and other security issues, they must also be able to afford the cost of helping their members, Credit Union National Association (CUNA) President/CEO Bill Cheney said in a recent Huffington Post editorial. Cheney's editorial noted that credit unions are issuing new debit cards and working with their members following a recent security breach that compromised the credit card numbers and other personal information of 77 million users of Sony's online gaming platform PlayStation Network. However, Cheney said, “contrary to what some might think, the expense for taking this action is not and will not be reimbursed by Sony. “When all is said and done, credit unions and banks will have spent millions on what appears to be a major security failure caused by Sony's inability to protect its consumer data,” Cheney said. Credit unions and banks rely on interchange revenue to cover the cost of debit program administration, “including in these circumstances, reacting to a merchant data breach,” and Cheney said that fraud protection and other debit-related costs would not be covered by the 12 cent per transaction fee that has been proposed by the Federal Reserve’s interchange fee cap regulation. This gap is another reason why members of Congress should support Senate legislation that would delay the implementation of new interchange rules and require further study of the impact that those rules could have on consumers, financial institutions, and merchants. Cheney added that a proposed exemption for institutions with $10 billion or less in assets woud not work, and said that the Fed’s proposed rule would “affect all debit-card-issuing credit unions and other financial institutions. “Data breaches such as the one we learned about last week will only exacerbate the problem for credit unions because the proposal and the underlying legislation would not allow these costs to be taken into consideration in terms of our ability to collect interchange revenue,” he said. For the full op-ed, use the resource link.
Other Resources

RSS





print
News Now LiveWire
Registration now open for @CUNA @WOCCU summer conference in Denver July 12-15 http://t.co/opq1jypsXL #ACUC #CUinDenver2015
16 hours ago
Emergency loans post- #Blizzard2015 offered by @ScientFCU in Conn. http://t.co/U9tIBzPOZV
16 hours ago
Did you get your spot in the @CUCB #CherryBlossom 10 Mile Run? Check lottery results here http://t.co/6rxT0osyWJ @CU4Kids @CMNHospitals
16 hours ago
@FamilyFirstFCU has implemented a grant program through the FHLB of NY to help first-time home buyers.
17 hours ago
#BREAKING: @federalreserve offers few new hints on rate-hike timing in policy statement http://t.co/lgZ6zZ1Vrr
18 hours ago