WASHINGTON–Six financial trade groups, including NAFCU and CUNA, have sent a letter to Congress in response to what they are calling false statements being made by retailers related to data breaches.
Meanwhile, as CUs continue to seek relief in Congress from the wave of lawsuits being filed over alleged violations by CU websites of the Americans with Disabilities Act (ADA), CUNA and the Illinois league have filed an amicus brief defending one credit union.
The letter, sent to House Speaker Paul Ryan (R-WI) and House Minority Leader Nancy Pelosi (D-CA) and all members of the House calls on Congress to move forward with a national data security standard akin to one outlined in draft legislation put forth by Reps. Blaine Luetkemeyer (R-MO) and Carolyn Maloney D-NY).
In addition to CUNA and NAFCU, the letter is signed by the American Bankers Association, Consumer Bankers Association, Financial Services Roundtable, Independent Community Bankers of America, and The Clearing House.
"[B]anks and credit unions have long been subject to regulatory mandates that set rigorous data protection and breach notification practices for financial institutions to follow,” the letter states. “In fact, federal regulators describe these notification obligations as 'an affirmative duty' for which compliance is demanded, and are considered to be an element of fundamental Safety and Soundness for the overall banking system."
The letter further states the draft legislation from Luetkemeyer and Maloney would "raise the bar so that all companies protect data similar to how banks and credit unions protect their data, and create a common-sense standard to ensure consumers receive timely notice when a breach does occur."
"Consumers are tired of having their information compromised, and they should be—the stakes are too high," the letter concludes. "The time for a national data security and notification standard is now, and the draft legislation set forth by Chairman Luetkemeyer and Congresswoman Maloney achieves that objective."
Separately, CUNA and the Illinois Credit Union League today filed an amicus brief defending Aurora Policeman Credit Union, which is “facing a frivolous lawsuit alleging violations of the Americans with Disabilities Act (ADA),” CUNS said.
As CUToday.info reported, CUNA has been working closely with several league partners to file in other states, most recently a brief in Texas.
“CUNA and the Illinois league filed this brief as part of our continuing defense of credit unions facing frivolous lawsuits alleging website noncompliance under ADA. CUNA will continue to push back on these meritless lawsuits that are being brought even when the plaintiff may not be eligible for the credit unions field of membership as is the case in this litigation once again” said CUNA President/CEO Jim Nussle. "We will continue to support our credit unions and their members, who are being unfairly targeted by plaintiffs' firms seeking to exploit uncertainty about what is required."
In the joint brief, CUNA and the Illinois Credit Union League primary arguments include:
· The plaintiff lacks standing to file suit against the credit union;
· A website is not a place of public accommodation;
· Applying Title III of the ADA to websites renders the statute impermissibly vague in the absence of any implementing regulations by the Department of Justice
· The court should dismiss the complaint pursuant to the Primary Jurisdiction Doctrine
CUNA said it continues to evaluate similar lawsuits and engage with the Department of Justice and on the Hill. Several members of Congress, including Rep. Bob Woodall (R-Ga.), pledged to support credit unions in finding a solution.