WASHINGTON–Data privacy remains before Congress as an issue of focus, but like so many other issues it’s complicated and caught up in the politics of the era.
Among the hearings being held in what is a very busy week in the House is a House Committee on Energy & Commerce hearing titled, “Protecting America’s Consumers: Bipartisan Legislation to Strengthen Data Privacy & Security.”
That hearing is to take place today at 10:30 a.m.
NAFCU VP-Legislative Affairs Brad Thaler said the hearing will include the unveiling of draft legislation that has some bipartisan support.
But there’s nothing private about the tough road ahead of the any bill.
“It’s late in the year to try to get an agreement and to get anything done on this issue,” said Thaler. “Still, it’s on the congressional radar and we will continue to tackle it.”
Privacy and data security have been priority issues for NAFCU. But it’s also a priority for competing interests, as well.
Devil Is In The Details
“The big issue is really in the details on a lot of these proposals,” Thaler explained. “From a financial institution perspective we want to ensure elements are there for financial institutions from Gramm-Leach-Bliley that get recognized. It’s a system financial institutions have lived with for 20-plus years and it has a track record. The worry is over scrapping the whole system and creating new burdens for financial institutions.
“There is also a lot of debate and discussion around right to action in the legislation,” Thaler continued. “Can anybody file suit against anybody? That could create a number of issues as well. There is a general agreement something needs to be done on privacy, but the differences are in the details. That’s always been the challenge in privacy and data security. Everybody agrees something needs to be done, but they don’t agree on what.”
As CUToday.info also reported earlier, last week Senate Banking, Housing, and Urban Affairs Committee Chairman Sherrod Brown (D-OH) has written to Treasury Secretary Janet Yellen, who oversees the Financial Stability Oversight Council (FSOC), to express concern with the collection and sale of consumer financial data practices.