WASHINGTON (5/21/12)--The Eliminate Privacy Notice Confusion Act (H.R. 5817), which is intended to cut the regulatory burden on credit unions and other financial institutions by limiting requirements on privacy notifications, was introduced on Friday and is strongly supported by the Credit Union National Association (CUNA).
The bill, which is sponsored by Rep. Blaine Leutkemeyer (R-Mo.) and cosponsored by Reps. Scott Garrett (R-N.J.) and Lynn Westmoreland (R-Ga.), states that financial institutions that provide nonpublic personal information only in accordance with the provisions of the Graham Leach Bliley Act, that do not share it with affiliates, and that have not changed their policy and practice since disclosing the policy, shall not be required to send annual privacy notifications to their members or customers.
The bill would also shield state-licensed credit unions and other financial institutions from Graham Leach Bliley disclosure requirements, provided their respective states have their own privacy regulations on the books.
CUNA President/CEO Bill Cheney commended Rep. Leutkemeyer for his leadership in introducing this regulatory relief measure. "The bill would eliminate a number of unnecessary and, quite frankly, confusing mailings that are often ignored by consumers and will reduce costs for credit unions and reduce confusion for credit union members," he added.
Cheney said CUNA looks forward to working with Rep. Leuktemeyer and the cosponsors to enact the bill.
A model privacy form, which was required by the Graham Leach Bliley Act, was developed jointly by the National Credit Union Administration and the Federal Reserve System, Commodity Futures Trading Commission, Federal Deposit Insurance Corporation, Federal Trade Commission, Office of the Comptroller of the Currency, Office of Thrift Supervision, and Securities and Exchange Commission in 2009.