ABA and six other financial trade associations yesterday called on Congress to move forward with legislation to implement strong national data security and breach notification requirements that would replace the current inconsistent patchwork of state laws.
“Our existing payments system serves hundreds of millions of consumers, retailers, financial institutions and the economy well,” the groups wrote in a letter to House Energy and Commerce committee leaders, who had requested comments on data breach legislation. “Protecting this system is a shared responsibility of all parties involved and we must work together to invest the necessary resources to combat never-ending threats to the payments system.”
The groups called specifically for legislation that would require all entities to protect consumers’ sensitive personal and financial data, notify consumers in a timely manner in the event of a breach and ensure compliance via appropriate federal and state oversight. They added that any national data breach legislation “must ensure that all entities that handle consumers’ sensitive financial data have in place a robust — yet flexible and scalable — process to protect data, which must be coupled with effective oversight and enforcement procedures to ensure accountability and compliance.”