The American Bankers Association and six financial sector associations said today that they oppose legislation that would establish national data privacy standards because the bill does not include a clear exception for financial institutions already subject to privacy and data protection requirements.
The American Privacy Rights Act, or H.R. 8818, is currently before the House Energy and Commerce Committee. In a joint letter to committee leaders, the associations noted they had previously reached out to lawmakers to express concern that the proposed law conflicts with the Gramm-Leach-Bliley Act, or GLBA, which already sets privacy and data security requirements for financial institutions. Since no clear exception was added to the bill for entities subject to the GLBA, the associations said they oppose the legislation in its current form. They again asked lawmakers to amend the bill to add an exception.
“Congress has long recognized the importance of privacy for financial institutions and has put in place several meaningful frameworks that include strong privacy and data security protections that have been carefully balanced with commonsense exceptions to minimize disruptions to financial markets,” the associations said. “While the financial services trade associations support legislation to put in place a national privacy standard, that standard must recognize the strong privacy and data security standards that are already in place for the financial sector under the GLBA and other financial privacy laws and avoid provisions that duplicate or are inconsistent with those laws.”
