X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON – In comment letters sent to NCUA, CUNA and NAFCU wrote that credit unions’ privacy notices are already brief and easily understood and argued for no mandatory changes at this time for credit unions. Their official comment letters were sent in response to a joint agency request for comments on a proposal concerning the issue. CUNA Assistant General Counsel Jeff Bloch said the trade association does not support a recent proposal by NCUA and the other federal financial regulators to alter the language and format of privacy notices at this time. The letter read, “Although credit unions recognize that the current privacy notices issued by certain types of financial institutions have been criticized as overly complex and have not proven useful for consumers, we believe such criticisms do not apply to the privacy notices issued by credit unions. However, credit unions are always willing to review specific proposals that will help their members better understand how their information is shared.” The letter added that the proposed changes would not meet the objectives of simpler, more meaningful disclosures. If changes are made, CUNA suggested that ample time be provided to implement the regulations and they should be made with consideration of the Fair and Accurate Credit Transactions Act in mind. CUNA did suggest that the requirement for annual notices is unnecessary, particularly for those credit unions that are not required to provide their members the right to opt-out of information sharing. “Whatever the modifications, flexibility should be built in,” NAFCU President and CEO Fred Becker wrote. NAFCU supports developing a shorter privacy notice so long as it is optional, he said. “NAFCU believes credit unions should not be required to incur additional expenses and administrative burden to replace notices that are already clear and conspicuous and in compliance with [the Gramm-Leach-Bliley Act],” the letter read. If a shorter notice is created, it should be a substitute, not a supplement, for a longer one. Maintaining and distributing two notices could be costly, NAFCU pointed out. The short notice should include all of the required elements applicable to their institution. Generally, NAFCU supported standardized language and format for use as guidance and any approach should not be mandatory. In its comment letter to NCUA, NASCUS also recommended NCUA defer revising the Privacy notification rule. NASCUS President/CEO Mary Martha Fortney called it “premature” to revise the requirements now. “NCUA should wait for the new disclosure requirements to be promulgated and then review the various notices to determine if a possibility for streamlining notices exists,” wrote Fortney. [email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.