May 24, 2006


Honorable Michael G. Oxley
Chairman
Financial Services Committee
United States House of Representatives
Washington, DC 20515

Dear Chairman Oxley:

America”s Community Bankers has previously expressed our support for H.R. 3997, the Financial Data Protection Act. Throughout the debate on data security reform ACB has had several core principles for legislation, including 1) uniform national standards, 2) functional regulation, and 3) recognition of Gramm-Leach-Bliley Act (GLBA) requirements.

Since the passage of GLBA in 1999 financial services companies have had an obligation to safeguard sensitive customer information and have in place a comprehensive privacy policy. Our functional regulators examine us for compliance with GLBA’s requirements. H.R. 3997 works to preserve the functional regulatory system that minimizes regulatory burdens for companies of all types. Furthermore, the legislation establishes a clear national standard that provides equal protection for all Americans, regardless of where they live. However, we are concerned that H.R. 4127, the Data Accountability and Trust Act, would undermine functional regulation for data security and would not establish a clear national standard.

We appreciate the Financial Services Committee’s efforts to craft legislation in H.R. 3997 that both establishes strong consumer protections and is not overly burdensome for financial services companies. We support the Financial Services Committee amending H.R. 4127 by replacing it with the text of H.R. 3997, and we look forward to working with you as the House of Representatives considers comprehensive data security legislation.

Sincerely,

Robert R. Davis
Executive Vice President and
Managing Director, Government Relations