ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release December 5, 2000 #00-134
E-mail: [email protected]

ACB ASKS REGULATORS TO MODIFY FAIR CREDIT REPORTING ACT PRIVACY PROPOSAL

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WASHINGTON, D.C. — America’s Community Bankers has urged the federal banking regulators to address potential unintended consequences of their proposal implementing privacy compliance and disclosure requirements of the Fair Credit Reporting Act.

The Gramm-Leach-Bliley Act requires the FCRA’s privacy requirements to be consistent with the privacy requirements of the G-L-B Act. But ACB said in its comment letter that the proposed FCRA regulation is “overly exhaustive and should be minimized.” The FCRA focuses on the use of customer information internally and gives institutions flexibility over the content of the opt out disclosure statement. The G-L-B Act governs opt out requirements for information shared outside of the banking organization where a more detailed disclosure notice is appropriate, ACB said.

Requiring both FCRA and G-L-B Act opt out disclosures to be consistent, ACB said, “could have the unintended consequences of discouraging more diversified community banks and their holding companies from creating consistent privacy notices across the organization. Because nonbank entities are not subject to these regulations, there would effectively be two different standards for bank and nonbank disclosure statement,” ACB said.

ACB also urged the agencies to make the FCRA requirements effective no earlier than July 1, 2002, to give community banks extra time to deal with operational issues, field test the opt out processing requirements and allow institutions to maintain a consistent annual privacy notice disclosure cycle. The G-L-B Act privacy requirements are effective July 1, 2001.

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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