CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » Data Security Act ‘mixed bag’ for credit unions
Policy & Issues

Data Security Act ‘mixed bag’ for credit unions

February 28, 2023
Cap2

The Data Security Act of 2023 is a “mixed bag” for credit unions, CUNA wrote to the House Financial Services Committee. The committee marked up several pieces of legislation starting Tuesday, including the Data Security Act of 2023.

“We support the goals of this legislation when considered as a substitute for the financial institution provisions in comprehensive data privacy legislation that the Energy and Commerce Committee may consider this year,” the letter reads. “However, we cannot support harmful provisions contained in this legislation, such as section § 501(c) on data usage, which would provide an extraordinary compliance burden on credit unions.”

CUNA supports federal requirements to protect information; federal requirements to notify consumers: of a data breach; strong federal oversight and examination; and strong federal sanction authority.

The letter recommends additions of provisions concerning:

  • Recognition of the burden on smaller financial institutions.
  • Updated definition of a financial institution to include data aggregators.
  • Preemption of conflicting state laws.
  • Maintaining the status quo on enforcement through our prudential regulators.

“CUNA has significant concerns about the inclusion of § 501(c) which can be interpreted as an “opt-in” for the use of all nonpublic personal information,” the letter reads. “Additionally, the § 502(e) exceptions apply to § 502 for collection and disclosure but not for use. As currently proposed, credit unions would have to obtain the affirmative consent of their members for any use of data whenever they provide basic financial services.

This creates an unwieldy, unsustainable system for credit unions that carefully manage existing uses of consumer data. We ask that this section be removed entirely from the bill,” it adds.

Credit Union Magazine: Spring 2023

Spring 2023

Credit Union Magazine’s Spring 2023 issue features the 2023 Credit Union Heroes and examines CUNA-League advocacy priorities, board leadership, the impact of financial well-being efforts, fee-related compliance issues, predictions for the year ahead, and more.
Digital Edition •  Subscribe

Trending

  • CUNA Mascot Madness: Voting opens for East Region

  • CUNA launches page with bank collapse response resources

  • League leaders highlight credit union difference, safety, soundness

Tweets by CUNA_News

Polls

CUNA Mascot Madness: Which Midwest Region mascot is your favorite?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us