Financial trade associations push Congress for national data security legislation

A coalition of financial trade associations, led by the Financial Services Roundtable (FSR), made a push this week to encourage Congress to pass a data security bill that would protect consumers from data breaches.

Each group is pushing for the bipartisan Data Security Act of 2015, a bill that requires all entities to protect consumer data as part of a data breach notification law. The bill seeks to build upon existing federal data protection and consumer notice standards, create uniform consumer protections, and promote innovation in security.

The American Bankers Association, the Consumer Bankers Association, the Credit Union National Association, the Independent Community Bankers of America, the National Association of Federal Credit Unions and the Clearing House (TCH) joined the FSR in support of the effort.

“All entities that handle sensitive financial data should be required to protect that data,” Jason Kratovil, vice president of government affairs for payments at the FSR, said. “Financial institutions have had this obligation for 15 years, and it’s long overdue for Congress to pass legislation ensuring that everyone has a similar mandate to keep customer data safe. Instead of enabling breaches to continue unchecked, Congress should move forward the bipartisan Data Security Act and not waste the remainder of this year.”