The American Bankers Association and six financial industry associations said that they continue to oppose a proposed data privacy bill that would conflict with privacy requirements already in place for banks and other financial institutions.
The American Privacy Rights Act (H.R. 8818) would create nationwide data privacy standards. ABA and other associations had previously urged lawmakers to carve out an exemption for financial institutions, which are subject to privacy and data security requirements under the Gramm-Leach-Bliley Act. So far, no exemption has been added to the bill, which was offered as an amendment to a separate bill — the Children and Teens’ Online Privacy Protection Act (H.R. 7890) — during a House Energy and Commerce Committee markup hearing.
“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,” the associations said today in a joint letter to the committee.
The lack of a clear exemption “will lead to duplicative and conflicting requirements for financial institutions already subject to oversight by GLBA regulation,” they added. “As currently drafted, the bill would be disruptive to the financial system, consumers and the economy.”
