Credit unions are deeply concerned that Americans’ financial wellness is compromised by inconsistent privacy and security standards applied to businesses that possess, process or transport consumers’ nonpublic personal information (NPI), CUNA wrote to the Senate Commerce Committee Wednesday. The committee conducted a hearing to examine legislative proposals to protect consume data, and CUNA submitted its letter for the record.
“[Credit unions] fear that non-depository institutions, such as data aggregators and other businesses that collect and sell data put Americans’ financial well-being at risk by not protecting the data and by using it in ways that target marginalized communities,” the letter reads. “Furthermore, misuse of NPI makes it more difficult for credit unions to deliver necessary financial services to these communities.”
Credit unions and other financial institutions follow requirements of the Gramm-Leach-Bliley Act (GLBA) and view applying those protections to others a “good first step,” but CUNA’s letter notes there is more that should be done.
Committee Chairman Sen. Roger Wicker (R-Miss.) released a draft of the legislative proposals covered in the hearing and CUNA supports the draft’s principles.
“The Chairman’s proposal contains many provisions that would greatly enhance protections for Americans by giving them ownership of their data and requiring the data to be protected from theft and misuse through enhanced data security protection,” the letter reads.
CUNA supports legislation that would: