Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Merchants low data security standards harm consumers CUNA
WASHINGTON (12/2/11)--Data security is a critical issue and the U.S. Congress should consider legislative changes to protect consumers, such as requiring merchants to meet the same high standards for data protection to which credit unions and other financial institutions are subject, the Credit Union National Association (CUNA) said in a letter sent to a key lawmaker Thursday.

Additionally, Congress should permit financial institutions to disclose the source of data breaches affecting their members or customers, and merchants should be required to reimburse consumers and financial institutions for costs associated with data breaches, CUNA President/CEO Bill Cheney wrote in a letter to the chairman of the House Small Business subcommittee on health and technology, Rep. Renee Ellmers (R-N.C.). The subcommittee conducted a hearing yesterday entitled hearing "Cyber Security: Protecting Your Small Business."

Cheney wrote that until merchants are held to high standards for data security as financial institutions, such as credit unions, are, the consumer will "remain vulnerable to a system that does not protect their information."

Without federal requirements forcing merchant to notify their customers of a data breach, the burden of notification to the consumer lies with the financial institution that issued the payment card.

"However, financial institutions cannot specify which merchant was responsible for the breach and also bears the costs of issuing new payment cards, and making any loss to the consumer's account whole. The merchant bears no financial responsibility in the case of a data breach," Cheney underscored in his letter to Ellmers.

Use the resource link to read CUNA's complete letter.


RSS print
News Now LiveWire
How may falling gas prices impact the U.S. economy? Find out tomorrow in #NewsNow #Market http://t.co/Q9ec9DGLDN
32 minutes ago
News of the comp. for tomorrow: Big bank unveils plans for massive $6.5 billion new headquarters #NewsNow #Market
2 hours ago
Consumer confidence surges to 7-year high #NewsNow #Market http://t.co/fMEENGuWPi
2 hours ago
Charlotte Cash, CEO of @COFCU , is engaging members by producing videos on various subject of financial interest to members.
3 hours ago
@CFPB today finalized a rule to promote more effective privacy disclosures from financial institutions to their customers. Watch News Now
4 hours ago