CUNA-sought FAST Act changes seen in CFPB proposal
CUNA expressed appreciation to the Consumer Financial Protection Bureau (CFPB) Wednesday for its reasonable approach to implementing the Fixing America's Surface Transportation (FAST) Act. CUNA strongly advocated for the FAST Act, which passed in December 2015 and required the CFPB to eliminate the unnecessary and outdated compliance burden of providing annual privacy notices if two conditions are satisfied.
After passage of the FAST Act, CUNA urged the CFPB to provide credit unions clarity through regulation.
Under the new requirements, if a credit union does not share nonpublic personal information about members (except as described in certain statutory exceptions), and does not change its policies and practices, then it can be exempt from sending out an annual notice.
Previously, many credit unions were unable to use the 2014 exemption because of the overly complex conditions that had to be satisfied, but the FAST Act addressed this by simplifying the ability to qualify for an exemption to sending the annual privacy notices.
The proposal outlines that if a credit union makes changes to its policies and practices in a way that no longer allows it to qualify for the exemption, but does not require a revised notice, they will have a 60-day period for delivery of the annual notice. CUNA, in its comment letter, suggested a 120-day timeframe would be more appropriate.
“Even if the credit union consciously decides to make a change to its policies and practices, the 60-day timeframe still could be overly compressed, particularly for smaller credit unions with fewer resources, or larger credit unions who have various departments working on these issues that must consolidate information,” reads CUNA’s letter. “To assure credit unions are not penalized because of a rushed timeframe, CUNA suggests that a 120-day period is more appropriate.”