Democratic members of the House Financial Services committeehave called on Chairman JebHensarling (R-Texas) to hold a full committee hearing on theTarget data breach.

“We note that the Committee's oversight plan for the 113thCongress states that building on the Committee's long-standing rolein developing laws governing the handling of sensitive personalfinancial information about consumers including theGramm-Leach-Bliley Act and the Fair and Accurate CreditTransactions Act, the Committee will continue to evaluate bestpractices for protecting the security and confidentiality of suchinformation from any loss, unauthorized access, or misuse,” the 17congressmen and women wrote in a letter on Friday.

The letter is signed by Democrat congressmen and women includingRanking Member Maxine Waters (Calif.), Carolyn Maloney (N.Y.), LacyClay (Mo.), Daniel T. Kildee (Mich.), Terri A. Sewell (Ala.), JamesA. Himes (Conn.), Gary C. Peters (Mich.), Gwen Moore (Wis.), DennyHeck (Wash.), Michael E. Capuano (Mass.), Kyrsten Sinema (Ariz.),Emanuel Cleaver (Mo.), Ed Perlmutter (Colo.), David Scott (Ga.),Stephen F. Lynch (Mass.), Gregory W. Meeks (N.Y.) and Bill Foster(Ill.). “It is incumbent upon our Committee to explore whetherindustry data protection standards are appropriate, and examinewhether heightened regulatory standards are needed to moreeffectively protect consumers,” the letter said. “A hearing wouldprovide members the opportunity to hear from regulators and theindustry to learn what steps merchants, financial institutions,payment processers, card networks and others should take to reducevulnerabilities in the payment system, and strengthen measures thatprotect consumers from fraud,” they wrote.

Both NAFCU and CUNA have written letters to the House and Senateleadership requesting hearings on data security after the Target breach, which affected more than 70 million people.

“Neiman Marcus Inc. and the Target Corporation are just thelatest in a string of large-scale data breaches impacting millionsof American consumers. The aftermath of these and previousbreaches demonstrate what we have been communicating to Congressall along: credit unions and other financial institutions – notretailers and other entities – are out in front protectingconsumers, picking up the pieces after a data breach occurs,” saidNAFCU President/CEO Dan Berger in a letter to Senate MajorityLeader Harry Reid and Minority Leader Mitch McConnell onMonday.

“It is the credit union or other financial institution that mustnotify its account holders, issue new cards, replenish stolenfunds, change account numbers and accommodate increased customerservice demands that inevitably follow a major data breach,” headded.

NAFCU has also called on Congress to pass legislation that would hold retailers to the same standard asfinancial institutions in protecting consumers' personalinformation.

John McKechnie, industry lobbyist who is a partner with theWashington-based firm Total Spectrum, said it's possible the retailindustry will oppose any and all attempts to improve data securityand provide relief to consumers, but encouraged credit unions tostand up for what's right.

“Unlike the situation involving debit interchange and theDurbin Amendment, which was sold as a way to lower costs, this is acase where millions of consumers have been harmed,” hesaid. “Credit unions have a case to make, and weshould make it.”