WASHINGTON (12/8/15)--Two bills in today’s House Financial Services Committee markup will decrease regulatory burden on credit unions while increasing the availability of capital to members, CUNA said in a letter to the committee.
The committee will markup the National Credit Union Administration Budget Transparency Act (H.R. 2287) and the Data Security Act of 2015 (H.R. 2205), among others starting at 2 p.m. (ET).
CUNA said the budget bill would promote more efficient use of NCUA funds, which primarily come from credit unions, and the data security bill would help stem the costs associated with information breaches. Both outcomes would increase funds available for loans to members.
“When credit unions’ elected board of directors and managers--not government bureaucrats--are making decisions about how to provide services, the member-owners of the credit unions benefit,” wrote CUNA President/CEO Jim Nussle to the committee. “The legislation under consideration at the markup take steps in the right direction toward removing barriers that have a detrimental impact on a credit union’s ability to serve their members.”
H.R. 2287, introduced by Reps. Mick Mulvaney (R-S.C.) and Kyrsten Sinema (D-Ariz.), would require the NCUA to hold a public hearing and allow or an open comment period regarding its budget.
“Credit union member resources are used to fund nearly all of NCUA’s budget,” Nussle wrote. “It is not too much to ask for the members of the NCUA Board to conduct an open hearing and provide stakeholders an opportunity to offer feedback to the agency.”
NCUA Chair Debbie Matz submitted a letter to the committee Monday, outlining her opposition to H.R. 2287, citing regulatory capture of the agency by the industry it regulates.
“The NCUA’s ‘capture’ argument is just a red herring,” said Ryan Donovan, CUNA’s chief advocacy officer. “The four day hearing the department of labor held this summer on the fiduciary rule left no one suggesting labor was exposed to regulatory capture. What the bill provides is a similar process to other regulatory proposals - an opportunity for stakeholders to comment on the record.”
H.R. 2205 would create a national data security law that sets out scalable security standards and consumer notification requirements for all entities handling sensitive consumer information. It was introduced by Reps. Randy Neugebauer (R-Texas) and John Carney (D-Del.).
“Credit unions already have a system in place that protects sensitive customer information and it makes sense to extend similar requirements to other industries that handle sensitive consumer information,” Nussle wrote. “H.R. 2205 requires merchants to meet comparable standards. This is necessary to provide the best possible protections for consumers.”
CUNA also signed on to a joint letter with other financial services organizations supporting H.R. 2205. The letter praises the legislation for extending the standards financial institutions already use to others handling sensitive data.
“Contrary to what some retailing trades suggest compliance with Gramm-Leach-Bliley Act data security and breach notification rules are mandatory. In fact, banks and credit unions are regularly examined to ensure compliance,” the letter reads. “Extending similar requirements to other industries that handle sensitive information will result in better consumer protection against data theft and fraud.”
In addition to CUNA, the joint letter was signed by the American Bankers Association, American Land Title Association, Consumer Bankers Association, Financial Services Roundtable, Independent Community Bankers of America, National Association of Federal Credit Union and The Clearing House.