NAFCU and CUNA expressed support for the proposed "Eliminate Privacy Notice Confusion Act," which would simply current privacy notification requirements for financial institutions.
"NAFCU has long urged lawmakers to ease the yearly privacy notice disclosures for credit unions and other financial institutions under the Gramm-Leach-Bliley Act," Chad Adams, NAFCU associate director of legislative affairs, said Wednesday. "We applaud Rep. Luetkemeyer (R-Mo.), Rep. Sherman (D-Calif.) 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 for credit union regulatory relief."
In the last session of Congress, Luetkemeyer and Sherman sponsored H.R. 749, the "Eliminate Privacy Notice Confusion Act," which amended the Gramm-Leach-Bliley Act.
Under the bill, any financial institution that does not share nonpublic information with unaffiliated third parties and has not changed its information sharing policies from the previous year would be exempt from the yearly privacy policy notice requirement.
CUNA has estimated that since 2001, credit unions have sent over 1 billion annual privacy notifications to their members.
"The Eliminate Privacy Notice Confusion Act will make privacy notices sent to consumers by financial institutions more meaningful by eliminating the requirement that the notices be sent annually, and requiring them only to be sent when the privacy policy of the financial institution has changed," CUNA President/CEO Jim Nussle wrote in a letter to Luetkemeyer and Sherman.
In addition to enhancing the value of these privacy notifications for consumers, the legislation also reduces regulatory burden for credit unions and other financial institutions, Nussle wrote.
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