March 21, 2013
United States Senate
Washington, D. C. 20510
Dear Senator:
On behalf of the thousands of financial institutions represented by the American Bankers Association, the Credit Union National Association, the Independent Community Bankers of America, and the National Association of Federal Credit Unions, we write to express our strong support for the bipartisan Privacy Notice Modernization Act of 2013 (S. 635), introduced by Senators Sherrod Brown (D-OH) and Jerry Moran (R-KS). S. 635 would eliminate redundant mailings of annual privacy notices when a financial institution’s privacy policy has not changed. The House version of privacy notice reform (H.R. 749) recently passed by voice vote and with broad bipartisan cosponsorship. We urge your support for expeditious consideration and passage of S. 635.
Under Gramm-Leach-Bliley, financial institutions are required to mail annual privacy notices to customers even when their policies have not changed. S. 635 would eliminate this requirement when no change in policy has occurred, while ensuring customers have continued access to their institution’s current privacy policy. Annual notices, when no change in policy has occurred, do not provide useful information to customers and are often a source of confusion to them. What’s more, they represent an unproductive expense for financial institutions that could be better directed toward serving consumers.
The House version of the Privacy Notice Modernization Act has twice passed the House by voice vote, in December of last year and again last week. We urge the Senate to consider this important bipartisan legislation without further delay or amendment.
Thank you for your consideration.
Sincerely,
Frank Keating, ABA Bill Cheney, CUNA Camden R. Fine, ICBA Fred Becker, NAFCU