The House
Financial Services Committee passed two CUNA-supported pieces of legislation – H.R. 5534, Give
Useful Information to Define Effective (GUIDE) Compliance Act and H.R. 6743, Consumer
Information Notification Requirement Act.
Earlier in the
week, CUNA wrote to both of the bills’ sponsors, joined with other trade
associations supporting H.R. Luetkemeyer’s data security legislation, and wrote
to Committee leadership prior to the mark-up.
Letters to:
If enacted into
law:
H.R. 5534, Give Useful Information to Define Effective (GUIDE) Compliance Act would require the
Bureau of Consumer Financial Protection to standardize the process of providing
guidance that can be relied upon by industry (passed by a vote of 38-14).
Specifically,
the bill:
- Requires the bureau to create a process for amending or revoking
guidance, including a process for public notice and comment;
- Prohibits liability for reliance in good faith on guidance from
the Bureau; and
- Requires the BCFP to develop and publish guidelines for
determining the size of any civil money penalties.
H.R. 6743, The Information Notification Requirement Act would update
Gramm-Leach-Bliley Act (GLBA) notification requirements for credit unions and
other financial institutions (passed by a vote of 32-20).
Specifically, this
legislation would create a notification regime preempting the existing
patchwork of often conflicting and contradictory state laws. This national
notification standard will ensure that consumers are treated consistently no
matter their state residence.
CUNA thanks the Committee for their support
of these bills, both of which would improve credit union service to members.
Clarity for bureau guidance is essential for the financial services
marketplace, and the need for data security legislation grows each day.
On behalf of America’s credit unions and
their 110 million members, CUNA will continue to work with Congress on these
issues, particularly on additional data breach legislation to hold merchants to
the same data security requirements as financial institutions.