WASHINGTON - (10/06/05) -- Credit unions and banks would berequired to notify customers if a data breach may cause identitytheft or transaction fraud under a new bill expected to beintroduced later this week. The issue of notification of databreaches has become a major one because cardholders at hundreds ofcredit unions and banks had to wait for months before they werenotified of the massive theft of consumer information fromCardSystems Solutions earlier this year. A federal court ruled lastmonth that Visa and MasterCard were not responsible for notifyingaffected cardholders because neither Visa or MasterCard had directrelationships with the cardholders, but with the cardholders'issuing credit unions and banks. The bill would also require allusers of confidential consumer information to secure thatinformation and cause businesses that suffered any informationbreaches to pay for notification to consumers and free creditmonitoring, according to Rep. Michael Castle, R-Del., who ishelping to draft the legislation. "The bottom line is, this is amatter of great urgency," Castle told attendees to Visa USA'sSecurity Summit here Wednesday. Castle said he expects a revisedversion of the security bill to be introduced by the end of thisweek, and a hearing to be held over the next few weeks.
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The Jackson, Mississippi, company will use proceeds from the sale of its Fisher Brown Bottrell Insurance unit to restructure its investment portfolio, moving $1.6 billion of low-yield securities off the balance sheet.
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The store-branded card issuer is raising annual percentage rates and adding fees for paper statements to compensate for lost revenue. The Consumer Financial Protection Bureau's new regulation is scheduled to take effect on May 14.
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At the banks' annual meetings, shareholders at both companies struck down proposals that would have split the board chair and CEO roles. Two other proposals also failed to win shareholder support, one concerning energy financing and another on pay gap analysis.
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Congressional Review Act resolutions are ramping up ahead of the 2024 election cycle. Experts say that, although none are likely to become law, the resolutions are still powerful messaging and political tools.
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The ABA is testing an information-exchange network to allow banks to share their fraud data with each other. Companies including Baselayer are also building solutions.
April 24 -
Republicans on the House and Senate Small Business committees are accusing the SBA of being irresponsible in granting Funding Circle permission to participate in its flagship loan-guarantee program.
April 24