This evening, the House of Representatives passed H.R. 749, the Eliminate Privacy Notice Confusion Act. This bill was cosponsored by Congresswoman Shea-Porter and will cut red tape for local banks and credit unions while eliminating duplicative mailings to consumers.
"To create a strong economy and a growing middle class, we need a regulatory system that works for both businesses and consumers," Shea-Porter said. "This bill supports that principle, and I hope it's an indication that Congress will work together to cut red tape for businesses, ease burdens on middle class families and keep our economy moving in the right direction."
Under current law, all financial institutions are required to give annual privacy notices to all of their customers that explain information sharing practices. Financial institutions are required to give these notices each year even if privacy policies have not changed from the previous year. This at best creates unnecessary and redundant waste for financial institutions and customers, and at worst causes consumers to ignore notices that may contain information about important changes.
Under the bill passed today, institutions must send notification only when they change privacy-related policies or practices. As a result, businesses will save millions of dollars each year on duplicative mailings and each mailing is more likely to contain information relevant to the consumer.
H.R. 749 was endorsed by the Credit Union National Association, the American Bankers Association, the National Association of Federal Credit Unions, the Independent Community Bankers of America, the Consumer Bankers Association and the Financial Services Roundtable.