WASHINGTON (3/27/12)--H.R. 4014, a House bill that would ensure that credit unions and other entities or individuals that provide information to the Consumer Financial Protection Bureau (CFPB) would not waive their right to privacy protections, passed the U.S. House by a voice vote yesterday, and similar legislation could soon be considered in the Senate.
The bill would make technical amendments to the Federal Deposit Insurance Act. Rep. Bill Huzienga (R-Mich.) spoke in support of his bill before the voice vote, saying it adds needed oversight to the CFPB and would create more peace of mind for financial institutions while also protecting consumers.
Credit Union National Association (CUNA) Senior Vice President of Legislative Affairs Ryan Donovan said CUNA has been supportive of a legislative fix to clarify that information submitted by credit unions to the CFPB retains any privileged status that it may have. "Because the language of H.R. 4014 amends the Federal Deposit Insurance Act, we have worked closely with the sponsors of the legislation and the committee leadership in both the House and the Senate to ensure that credit union information is protected," Donovan added.
HR 4014 would protect information submitted to the Bureau by "any person". In the Committee Report accompanying H.R. 4014, the Financial Services Committee indicated that they intend for the term "any person" to "include any individual, partnership, company, corporation, association (incorporated or unincorporated), trust, estate, cooperative organization, firm, society, joint stock company, or other entity."
Similar legislation, S. 2099, is backed by Senate Banking Committee Chairman Tim Johnson (D-S.D.) and ranking committee minority member Richard Shelby (R-Ala.).
The types of privacy improvements contained in the bills have also been endorsed by CFPB Director Richard Cordray.