WASHINGTON—Issues related to IRS reporting proposal, NCUA authority over third-party vendors and more were addressed in a letter sent by NAFCU ahead of a House Financial Services Subcommittee hearing on cyber threats, consumer data, and the financial system.
In the letter, NAFCU Vice President of Legislative Affairs Brad Thaler reiterated the trade association’s ongoing opposition for the proposed IRS reporting requirements, calling the provision as an invasion of privacy American taxpayers.
In addition, Thaler shared NAFCU’s concerns regarding the Strengthening Cybersecurity for the Financial Sector Act, which would grant the NCUA additional authority over vendors.
“NAFCU believes in a strong NCUA, but we also believe that the NCUA should stay focused on where their expertise lies—regulating credit unions. Credit unions fund the NCUA budget,” wrote Thaler.
National Data Security Standard
The letter also repeated the trade association’s support for a national data security standard for all entities that collect and store consumers’ personal and financial information. Thaler said the harm presented by retailers and fintechs that are not being held to the same data security expectations as depository institutions could hurt to the financial system.
“Credit unions suffer steep losses in re-establishing member safety after a data breach and are often forced to absorb fraud-related losses in its wake,” wrote Thaler. “Credit unions and their members are the victims in such a breach, as members turn to their credit union for answers and support when such breaches occur.”