FARMERS BRANCH, Texas (4/1/14)--The Texas House Committee on Business and Industry held a hearing Thursday on data security, during which the CEO of Chocolate Bayou Community FCU, Alvin, testified about how breaches affect credit unions.
Gary Davis, president/CEO of the $98 million-asset credit union, appeared on behalf of the Texas Credit Union Association and shared how credit unions are affected by data breaches--the costs they incur in fraud and card reissuing--and the erosion of public trust. (Leaguer March 31).
He noted that legislation is needed to protect Texas consumers--a position that the Credit Union National Association is also bringing to the forefront at the national level.
Davis told the committee that next year's migration to the Europay, MasterCard and Visa (EMV) chip system will cost between $4 and $9 per card. Chairman Rene Oliveira (D-Brownsville) asked Davis if this charge would be passed to consumers, and Davis replied it wouldn't.
Testimony on the impact of data theft was presented by state agencies, bankers, credit card processors, retailers' associations and others.