WASHINGTON (3/10/15)--National Credit Union Administration Vice Chair Rick Metsger called on retailers to shoulder the cost of data security breaches in remarks at CUNA's Governmental Affairs Conference Monday.

National Credit Union Administration Vice Chair Rick Metsger calls on retailers to the pay the consequences for data breaches. (CUNA Photo)

"Retailers are great at posting signs in the stores that say, 'If you break it, you bought it,'" Metsger said. "Well, what is good for the goose is good for the gander. If their security breaks, they should pay the consequences--not you, your members or your credit union."

CUNA continues to push Congress to pass a strong federal law providing data breach standards for merchants and for reimbursement to card issuers in the event of a breach.

Metsger also called for regulatory relief, coupled with new authorities such as the ability to issue supplemental capital and increased member business lending. Metsger's comments echoed those made by NCUA Chair Debbie Matz earlier in the day. (See related story: 2015 year of reg. relief, NCUA's Matz to attendees.)

"Some modernization is beyond our authority to grant under existing law and will need your voice before Congress to ease constraints," Metsger said. "Other changes can only be provided by other regulatory agencies like the CFPB.  For my part, I want to assure you of my commitment to modernizing outdated regulations within the NCUA's jurisdiction."

On another regulatory issue, Metsger urged GAC attendees to focus on the policy design of risk-based capital rather than the legal "sideshow" of whether NCUA has the legal authority to set separate capital requirements.

"Debating this legal issue is a circular exercise," Metsger said. "Only a court is empowered to make that decision. What lawyers rarely, if ever, consider--and what the central question of importance is for you, for me, and for the American public--is: 'What is the best public policy?'"

Metsger said "the biggest single issue" where GAC attendees can make a difference is to add a voice to his effort to modernize field-of-membership rules for federal charters. Metsger's update would put federal field of membership rules in line with those of many states.

"Our dual-chartering system works best when state and federal charters keep pace with each other," he said.