March 13 - The Independent Community Bankers of America has said it supports the House of Representatives’ passage of legislation that would eliminate a legal provision requiring financial institutions to provide annual privacy notices to customers even when their policies have not changed. The Eliminate Privacy Notice Confusion Act (H.R. 749), which is a key plank in ICBA’s Plan for Prosperity legislative platform, would relieve community banks and other financial institutions from unnecessary paperwork burdens while minimizing consumer confusion.
“Requiring community banks to mail annual notices to customers when their policies have not changed provides no useful information to consumers and represents an unproductive and burdensome annual expense for financial institutions,” ICBA President and CEO Camden R. Fine said. “H.R. 749 will help save us a lot of time and resources, not to mention a few trees, that can be better used to serve Main Street customers. ICBA and the nation’s community banks thank Reps. Blaine Luetkemeyer, R-Mo., and Brad Sherman, D-Calif., for sponsoring this legislation and call on the Senate to quickly pass this important House measure.”
H.R. 749 would require certain financial institutions to send notices to their customers only in the event of a change in their privacy policies or practices. Identical legislation passed the House last year by voice vote under suspension of the rules, which is an expedited process used for non-controversial measures such as this.
As part of ICBA’s Plan for Prosperity legislative agenda, the measure is one of many proposals designed to ease excessive, redundant and costly regulations and help community banks dedicate more of their resources to promoting economic growth.
For more information, visit http://www.icba.org/advocacy/.