Removing Barriers Blog

CFPB Provides Clarity about Privacy Notice Requirements
Posted January 04, 2016 by Chandler Schuette

Today, the CFPB released the following statement regarding the provision in the recently enacted Fixing America’s Surface Transportation (FAST) Act that provides, under certain circumstances, a financial institution will no longer be required to provide annual privacy notices:

“The CFPB recognizes that the recent statutory change on annual privacy notice requirements became effective upon the transportation bill’s enactment. The Bureau has begun working with our fellow regulators to coordinate on a process to discuss further each agency's plans for rulemaking in this area given the statutory changes. In the meantime, the Bureau is conveying to its supervision and enforcement staff that the law is effective immediately so that no financial institution is expected to comply with superseded regulatory requirements.”

The privacy notice provision is based on H.R. 601, which was introduced by Reps. Blaine Luetkemeyer (R-Mo.) and Brad Sherman (D-Calif.), a bill which CUNA supported and advocated. This in conjunction with two other credit union regulatory relief provisions were signed into law by President Obama on December 4, 2015. The provisions were passed as part of the Fixing America’s Surface Transportation (FAST) Act, which is a five-year, $305 billion highway funding package.

CUNA’s Compliance Department recently published information about compliance with this new law.

We also recently asked the NCUA to provide similar clarification about this issue, since the NCUA in most instances will be enforcing the privacy requirements.