ANNAPOLIS, Md. (3/11/08)--The Maryland and District of Columbia Credit Union Association (MDDCCUA) testified last week before two Maryland House Committees on legislation regarding financial literacy and plastic card security. On March 4, Mike Beall, MDDCCUA CEO; Suzanne Curren, director of member education for Andrews FCU; and Dorothea Stierhoff, senior public affairs specialist for MECU of Baltimore Inc., testified in favor of House Bill 1242. It would create a statewide task force to craft a plan resulting in including financial education in the public school curriculum (FOCUS Newsletter
March 10). The task force would include representatives from the state General Assembly, credit unions, banks, teachers’ unions, and the State Superintendent of Schools. On March 6, the state’s House Economic Matters Committee heard testimony on the Plastic Card Security Act (HB 129), which would prohibit businesses that accept credit cards for transaction from keeping the data on the card’s magnetic stripe. For transactions in which the personal identification number is used--like a debit card--the strip information can be held for up to 48 hours after the transaction has been authorized. Testifying in support of the bill were: Beall; MDCCUA Advocacy Committee Chairman Rod Staatz, president of State Employees’ CU of Maryland; and Larry Blanchard, senior vice president of CUNA Mutual Group. Any business that holds data after the allowed period will be found in violation of the law. If a consumer’s private data is shared or divulged because of the violation, the business must reimburse these costs to the financial institution that issued the credit or debit card:
* Canceling or reissuing the card; * Closing any account, stopping payment, and blocking any transaction involved with the account linked to the card; * Refunding or crediting any fees that cardholders paid to cover the cost of an authorized transaction; * Notifying cardholders; and * Reimbursing any funds paid to cardholders whose private data is breached or divulged.