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CUNA Backs Exception from Costly Privacy Notifications

CUNA Backs Exception from Costly Privacy Notifications

SUPPORT FOR EXCEPTION FROM COSTLY PRIVACY NOTICE REQUIREMENT
 

December 3, 2012


FOR IMMEDIATE RELEASE
Contact: Patrick Keefe
CUNA Communications, 202-508-6765
pkeefe@cuna.com


Legislation providing an exception for costly annual privacy policy notification requirements if the policy has not changed since it was last disseminated is favored by credit unions, CUNA wrote to the two sponsors of the bill - which could receive a vote on the House floor as early as Monday.

In the letter from CUNA President and CEO Bill Cheney to Reps. Blaine Luetkemeyer, R-Mo., and Brad Sherman, D-Calif., Cheney noted H.R. 5817, the Eliminate Privacy Notice Confusion Act, would eliminate a costly and unnecessary compliance burden for credit unions. "The bill eliminates repetitive notices that are often ignored by consumers, and enhances consumer protection by ensuring that when a consumer receives a privacy notification, it has significance and is not redundant. The legislation also reduces future compliance burden for credit unions and other financial institutions," Cheney wrote.

Separately, Cheney noted that CUNA's support for H.R. 5817 is in keeping with the association's persistent efforts to reduce the regulatory burden on credit unions. Other initiatives include support for: an ATM disclosure bill that passed the House earlier this year, an examination fairness bill on which CUNA testified in February, and other legislation making reforms to the Consumer Financial Protection Bureau.

The complete text of Cheney's letter to the lawmakers follows:

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November 29, 2012

The Honorable Blaine Luetkemeyer
Member of Congress
1740 Longworth House Office Building
Washington, D.C.  20515

The Honorable Brad Sherman
Member of Congress
2242 Rayburn House Office Building
Washington, D.C.  20515

Dear Representatives Luetkemeyer and Sherman:

On behalf of the Credit Union National Association (CUNA), I am writing in support of H.R. 5817, the Eliminate Privacy Notice Confusion Act. CUNA is the largest credit union advocacy organization in the United States, representing nearly 90% of America's 7,300 state and federally chartered credit unions and their 94 million members. CUNA strongly supports H.R. 5817 and appreciates your leadership on this issue.

H.R. 5817 will eliminate a costly and unnecessary compliance burden for credit unions.  The legislation provides an exception to the Gramm-Leach-Bliley annual privacy notification requirements if the financial institution's privacy policy has not changed since it was last disseminated.

If this legislation becomes law, consumers currently receiving redundant annual privacy notices regardless of whether a policy has changed, will instead receive their notices when actual changes were made to their policies. The bill eliminates repetitive notices that are often ignored by consumers, and enhances consumer protection by ensuring that when a consumer receives a privacy notification, it has significance and is not redundant.  The legislation also reduces future compliance burden for credit unions and other financial institutions.

On behalf of America's credit unions, we appreciate your effort to eliminate unnecessary regulatory burdens for credit unions.  We strongly support this legislation and look forward to its enactment.

Best regards,

Bill Cheney
President & CEO
Credit Union Natl. Assn. (CUNA)
Washington


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