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:

• Representatives Sean Duffy and Ed Perlmutter in support of H.R. 5534;
• Representative Blaine Luetkemyer in support of H.R. 6743;
• Joint trades letter supporting H.R. 6743; and
• Letter to Chairman Hensarling and Ranking Member Waters prior to Committee mark-up.

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.