Privacy Bill Passage Would Eliminate Needless Burden on CUs, Vote Tomorrow

Monday, March 11, 2013 11:47:00 AM

 

WASHINGTON – The Eliminate Privacy Notice Confusion Act (H.R. 749) is scheduled for a full vote in the House tomorrow.

CUNA supports the bill, which would eliminate repetitive privacy notices by eliminating a requirement that the notices be sent annually. It was one of the issues discussed during the recent annual GAC Hike-the-Hill.

Under the terms of the bill, privacy notices would only to be sent when a financial institution changes its privacy policy. Citing statistics that showed more consumers would read privacy notices if they were sent only when account terms changed, CUNA President/CEO Bill Cheney called on Congress to eliminate repetitive, annual privacy notices by passing H.R.749.

Under current rules, credit unions alone have sent an estimated one billion annual privacy notifications to members since 2001, CUNA estimates. CUNA President/CEO Bill Cheney in a letter to lawmakers noted a survey that shows fewer than one-quarter of consumers read the privacy notifications they receive, and over three-quarters of consumers would be more likely to read them if they were only sent when the financial institution changed its policy.

"This suggests that the public policy goal of privacy notifications would be better achieved if the notices had more meaning to consumers." H.R. 749 achieves this end, Cheney wrote.

Comments

Comments are closed on this post.