Credit union and major banking trade groups are calling on the House Energy and Commerce Committee to help develop a national standard for data breaches that requires consumers to be notified immediately when a breach occurs.
“Data breaches impose significant costs on financial institutions of all sizes because our first priority is to protect consumers and ensure that they have no liability for fraud that typically follows a breach,” the trade groups, including CUNA and NAFCU, said in a letter to leaders of the panel. “Our members provide relief to victims of breaches, regardless of where the breach occurs.”
Financial services trade groups have complained that retailers are not subject to the same stringent data breach rules as they are.
Historically, the House has faced a stalemate over data breach legislation. The Energy and Commerce Committee has tilted toward favoring retailers, while leaders of the House Financial Services Committee have pushed legislation that would subject retailers to the same standards as financial institutions.
The leaders of the Energy and Commerce Committee earlier this month solicited public comment on the issue.
In the letter, the groups said it is critical that the two panels work together to eliminate the “inconsistent patchwork” of state laws.
They said that the legislation should ensure that all entities protect sensitive personal and financial data and require that consumers and others at risk are promptly notified as soon as a breach occurs.
In addition, they said that the legislation should ensure compliance through state and federal oversight, recognizing the federal obligations of financial institutions to secure data and notify consumers of a breach.
“Protecting this system is a shared responsibility of all parties involved and we must work together and invest the necessary resources to combat never-ending threats to the payments system,” they said.
In addition to CUNA and NAFCU, the organizations signing the letter are: the American Bankers Association, the Consumer Bankers Association, the Financial Services Roundtable, the Independent Community Bankers of America and the Clearing House.
