America’s Credit Unions President/CEO Jim Nussle stressed credit unions’ support of a strong national data security and privacy standard in a letter to the Senate Commerce Committee Subcommittee on Consumer Protection, Product Safety, and Data Security Wednesday.
“Since 2005, there have been more than 18,000 data breaches exposing billions of consumer records,” Nussle highlighted. “These breaches have cost credit unions, banks, and the consumers they serve millions of dollars, and have compromised consumers’ privacy, jeopardizing their financial security.”
Additionally, he noted data breaches cause harm to both the credit union and members, who bear the cost as owners of the institution. Nussle also explained that field of membership restrictions on credit unions can further complicate data breaches, as they can be concentrated to geographic or industry-specific populations.
Nussle concluded by highlighting the three key tenets for any data privacy legislation:
- a recognition of Gramm-Leach-Bliley Act (GLBA) standards in place for financial institutions and a strong exemption from new burdensome requirements;
- a strong federal preemption from the myriad state laws for those in compliance with national privacy and GLBA standards; and
- protection from frivolous lawsuits created by a private right of action.
America’s Credit Unions will continue to engage lawmakers on data security and privacy.
