The House voted 397-8 Monday night to pass the CUNA-backed Making Online Banking Initiation Legal and Easy (MOBILE) Act of 2017 (H.R. 1457). The bill, introduced by Rep. Scott Tipton (R-Colo.) would allow financial institutions to use electronic copies of identification for purpose of identity verification.
“This legislation is important to help credit unions and other financial institutions remain competitive in a world where financial technology companies are often subject to fewer requirements,” said CUNA President/CEO Jim Nussle. “It’s always a positive development when consumers have easier access to credit unions and the safe and affordable products and services they offer.”
Specifically, the MOBILE Act would allow financial institutions, with an individual’s consent, to record personal information from a swipe, copy or image of a driver’s license or other personal identification card. It would also allow the institution to store the information electronically for the purpose of verifying the identity of the consumer and preventing fraud or other criminal activity.
The MOBILE Act passed the House Financial Services committee in December with a 50-10 vote.