data privacy
America's Credit Unions called on lawmakers to adopt a balanced, streamlined approach to federal data privacy legislation, emphasizing that existing financial privacy laws already provide strong protections for consumers.
In a letter submitted ahead of a House Financial Services Committee hearing on updating the nation's financial privacy framework, the group said credit unions support efforts to establish a comprehensive federal standard but cautioned against layering new requirements on top of existing regulations.
The organization pointed to the Gramm-Leach-Bliley Act (GLBA) as a proven framework that governs how financial institutions collect, use and safeguard consumer data. It also highlighted existing requirements for financial institutions to maintain robust data security programs, including protections for sensitive member information and oversight of third-party vendors.
America's Credit Unions warned that duplicative or overly prescriptive rules could increase compliance burdens, particularly for smaller institutions, and potentially accelerate consolidation in the credit union industry.
The group urged policymakers to prioritize a risk-based approach to data privacy, provide exemptions where appropriate and avoid creating a patchwork of conflicting state laws.
Additionally, it expressed concern over provisions that could expand private rights of action, arguing such measures could lead to costly litigation without improving consumer protections.
America's Credit Unions said it looks forward to working with Congress to develop a national privacy framework that enhances security while preserving access to financial services.
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