WASHINGTON — America’s Credit Unions is urging House Financial Services Committee leaders to pursue a comprehensive, sector-wide approach to data privacy legislation while preserving the existing regulatory framework that governs credit unions.
In the letter addressed to Committee Chairman Rep. French Hill (R-AK) and Vice Chairman Rep. Bill Huizenga (R-MI), the trade group said it supports efforts to modernize financial data privacy rules but cautioned that proposed updates centered on the Gramm-Leach-Bliley Act (GLBA) could leave gaps in other sectors.
America’s Credit Unions said it was “pleased” the discussion draft acknowledges the GLBA framework, which it said has long provided strong privacy protections for credit union members. However, the organization emphasized that updating GLBA alone represents a “sector-specific strategy” that does not fully address entities outside the financial services system that also collect and store sensitive consumer data.
The group called for a comprehensive federal data security and privacy framework that would establish consistent standards for all entities handling personal data, arguing that uneven regulatory oversight creates vulnerabilities.
Support for Some Provisions
At the same time, America’s Credit Unions said the discussion draft includes several provisions it supports, including exemptions intended to preserve operational flexibility in data retention and recognition of the role of smaller financial institutions.
The letter follows a March 17 committee hearing titled “Updating America’s Financial Privacy Framework for the 21st Century,” where lawmakers began examining potential changes to federal privacy law.
