WASHINGTON—Both credit union trade groups are expressing support for the Eliminate Privacy Notice Confusion Act, H.R. 601, which was introduced by Reps. Blaine Luetkemeyer (R-MO) and Brad Sherman (D-CA).
“Consumers are rightfully concerned about the protection of their personal financial information, and it is important for them to understand how their financial institutions handle this information,” said CUNA CEO Jim Nussle in a letter to Luetkemeyer and Sherman. “Financial institutions, including credit unions, notify consumers of their privacy policies when they begin their relationship; under current law, privacy notices are also sent annually to all consumers and also sent when the financial institution changes its privacy policy. Since 2001, we estimate that credit unions have sent over one-billion annual privacy notifications to their members.”
The letter goes on to state that surveys show approximately one-quarter of consumers read privacy notifications, and that three-quarters would be more likely to read them only when sent at the time of a policy change.
NAFCU said, “We applaud Rep. Luetkemeyer, Rep. Sherman and their staffs for pushing to remove the need for redundant, burdensome notice disclosures, which is a key element of NAFCU’s five-point plan credit union regulatory relief.”
The legislation currently has 76 co-sponsors in the Senate.
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