WASHINGTON (5/4/15)--A bill that would establish a national data security standard was introduced Friday, and has CUNA’s strong support.
The Data Security Act of 2015 (H.R. 2205) was introduced by Reps. Randy Neugebauer (R-Texas) and John Carney (D-Del.) and would establish a process for companies of all sizes to follow in order to secure consumer data.
“I thank Reps. Neugebauer and Carney for their leadership on data breaches and their commitment to protect the financial data of all Americans,” said Jim Nussle, president/CEO of CUNA. “Those who accept cards as payment must be held to the same standard as those who issue cards for payment.”
The legislation would apply to companies that do not currently have a federal obligation to protect consumer information. Its standards are based off interagency guidance that implements the Gramm-Leach-Bliley Act, which sets the standards financial institutions must follow in protecting consumer data.
Under the bill, each covered entity must:
This House bill comes several weeks after a Senate bill was introduced by Sens. Tom Carper (D-Del.) and Roy Blunt (R-Mo.) that would set standards for entities that handle consumers’ personal information. That bill, also titled the Data Security Act of 2015, has CUNA’s strong support.
CUNA signed onto a letter of support sent Friday with several other financial trade organizations.
“The reforms in the bill would effectively replace the current patchwork of state and federal regulations for data breaches with a national law that provides uniform protections across the country,” the letter reads. “This comprehensive approach would better serve consumers by making it easier for businesses and government agencies to take the steps necessary to adequately protect all Americans from identity theft and account fraud.”
Friday’s letter was signed by the American Bankers Association, Clearing House, Consumer Bankers Association, Financial Services Roundtable, Independent Community Bankers of America and the National Association of Federal Credit Unions.