Advocacy group applauds House effort to streamline privacy protections
The Bank Policy Institute, a group representing the interests of banks and bankers in Washington, DC, is applauding efforts in the U.S. House of Representatives to update and streamline privacy protections provided to consumers in the financial marketplace.
Specifically, the group is expressing support for the Financial Data Privacy Act sponsored by Rep. Patrick McHenry of North Carolina.
The essence of the bill is the creation of a federal standard of privacy protection which would pre-empt any state protections and allow for a uniform application of privacy standards across the country.
“This legislation would promote seamless access to financial services by ensuring that customers have the same privacy protections consistently across the country," said Greg Baer, President and CEO of the Bank Policy Institute. "The process of revamping privacy law for banks deserves careful consideration, and this bill is a step in the right direction for bank customers."
The group noted that the legislation not only streamlines business practices for banks by creating one federal standard, but also applies privacy protection requirements to nonbank entities.
The Bank Policy Institute suggests that consumers benefit from a seamless application of basic privacy protections across state lines. Additionally, the group notes that consumers are not uniformly protected when dealing with nonbank entities competing for their business in the financial marketplace.
While the Bank Policy Institute represents bankers and banks, the advocacy group points out that a streamlined notice process and uniform protections among bank and nonbank financial entities carries benefits for consumers.
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