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NAFCU opposes IRS reporting, NCUA vendor authority, advocates for data security ahead of hearing
NAFCU Vice President of Legislative Affairs Brad Thaler Tuesday wrote to the House Financial Services Subcommittee on Consumer Protection and Financial Institutions ahead of its hearing today on cyber threats, consumer data, and the financial system. In the letter, Thaler reiterated NAFCU’s ongoing opposition for the proposed IRS reporting requirements, outlining the provision as an invasion of privacy for countless Americans.
In addition, Thaler shared NAFCU’s concerns regarding the subcommittee’s Strengthening Cybersecurity for the Financial Sector Act, which would grant the NCUA additional authority over vendors.
“NAFCU believes in a strong NCUA, but we also believe that the NCUA should stay focused on where their expertise lies—regulating credit unions. Credit unions fund the NCUA budget,” wrote Thaler.
The letter also highlights NAFCU’s support of a national data security standard for all entities that collect and store consumers’ personal and financial information. Thaler explains the harm that retailers and fintechs not being held to the same data security expectations as depository institutions could bring to the financial system, causing them to become victims of various security issues including data breaches.
“Credit unions suffer steep losses in re-establishing member safety after a data breach and are often forced to absorb fraud-related losses in its wake,” wrote Thaler. “Credit unions and their members are the victims in such a breach, as members turn to their credit union for answers and support when such breaches occur.”
Thaler detailed NAFCU’s guiding principles for key cyber and data security issues, as well as consumer privacy, followed by suggestions to protect consumer information in all financial institutions.
NAFCU believes it is imperative that regulators and lawmakers provide greater legal clarity and a level playing field that serves highly regulated institutions like credit unions just as well as nonbank, fintech companies. The association will monitor today’s hearing – scheduled for 10:00 a.m. Eastern – and will keep credit unions up to date on this issue via NAFCU Today.