WASHINGTON–A coalition of financial trade groups that includes America’s Credit Unions have sent a letter to the Hill in which they identified preferred language they said recognizes the existing applicability of strong data protections under the Gramm-Leach-Bliley Act (GLBA) and that also exempts banks and credit unions from the scope of new federal privacy legislation.
In the letter to the House Energy and Commerce Committee, the trade groups wrote that any comprehensive federal framework should avoid duplicative requirements for financial institutions, according to America’s Credit Unions.
The letter recommends lawmakers adopt language similar to the Kentucky Consumer Data Protection Act, which clearly exempts institutions already covered by GLBA.
The groups also pointed to rising compliance costs from the growing patchwork of state privacy laws, with frequent changes in law creating uncertainty even when states include carveouts for financial institutions the trade group added.
Remainder on Tax Status
Separately, America’s Credit Unions President/CEO Jim Nussle sent a letter to congressional tax committee leaders to continue to protect credit unions’ tax status if any additional reconciliation package is considered.
As America’s Credit Unions noted, Nussle told Congress:
- Credit unions use the tax status seriously and use it to help more than 144 million members, delivering an estimated $35 billion in financial benefits in 2024 for consumers, compared to the estimated “cost” of $2.6 billion in tax revenue; and
- Credit unions do not distort competition, despite bank lobbyist claims, as their market share has been below 10% since receiving a federal charter.
The full letter can be found here.
