Removing Barriers Blog

Credit union data security concerns shared with Senate Commerce Committee
Posted December 04, 2019 by CUNA Advocacy

Earlier this week, CUNA wrote to Chairman Wicker and Ranking Member Cantwell prior to the Senate Commerce Committee hearing entitled, “Examining Legislative Proposals to Protect Consumer Data Privacy.”  In the letter, CUNA wrote about the concern credit unions have for Americans’ financial wellness is compromised by inconsistent privacy and security standards applied to businesses that possess, process or transport consumers’ nonpublic personal information (NPI).

Credit unions and other financial institutions follow requirements of the Gramm-Leach-Bliley Act (GLBA) and view applying those protections to others a “good first step,” but CUNA’s letter notes there is more that should be done.

Chairman Wicker released a draft of the legislative proposals covered in the hearing and CUNA supports the draft’s principles.

“The Chairman’s proposal contains many provisions that would greatly enhance protections for Americans by giving them ownership of their data and requiring the data to be protected from theft and misuse through enhanced data security protection,” the letter reads.

CUNA supports legislation that would:

  • Apply data privacy and data security standards to everyone — all business, institutions and organizations — and hold each link in the transaction journey accountable;
  • Create equal expectations and protections by harmonizing inconsistencies through new legislation that protects sensitive information based on the type of information rather than the type of entity that possess it;
  • Create a national standard that is the ceiling for requirements;
  • Base protections on strong standards that protect data; and
  • Safeguard consumer protections by providing mechanisms to address the harms that result from privacy violations and security violations, including data breaches.