Calif. Bankers Blast Privacy Plan

The California Bankers Association is criticizing financial privacy legislation that has the support of credit unions and has been passed out of the Banking & Finance Committee of the California State Assembly. "SB 773.does nothing to promote consumer privacy and instead placates or creates loopholes for a handful of special interests," the bankers said.

SB 773 is a compromise proposed by Sen. Jackie Speier and Assemblyman Joe Nation that the California league has thrown its support behind. "Despite the authors' claims, nothing in the bill addresses identity theft or telemarketing," the CBA said in its critique. "Several special interests received preferential treatment and consideration during the drafting of the legislation. As a result of these loopholes and exemptions, American Express, USAA Insurance, retailers, accountants, consumer attorneys, and California's credit unions would not be subject to the same regulations and compliance standards as their competitors, creating winners and losers in California's marketplace."

If it doesn't make it through this year, we'll certainly see something like it next year," CCUL spokesperson Henry Kertman told The Credit Union Journal.