Wis. Assembly Kills CU-Backed Data Security Bill
MADISON, Wis.–A CU-backed data security bill that moved quickly through committee was tabled indefinitely by the State Assembly here last week, virtually killing the bill for this year.
The bill would have required all merchants to destroy personal credit card data immediately after use–the same way MasterCard and Visa require destruction of the information–and would have made parties responsible for data breaches pay for costs incurred by CUs, banks and consumers in resolving the breach.
Brett Thompson, president of the Wisconsin CU League, which led the effort for the bill, expressed disappointment in the procedural tie-up. “Had this bill been allowed to receive an up or down vote before the full Assembly, we feel it would have passed,” said Thompson.
The Wisconsin bill is similar to model data security bill being circulated by CUNA Mutual, as well as legislation being debated in California, Maryland, Texas and several other states.
Jury Continues Deliberations In Aranjo’s Fraud Trial
SPRINGFIELD, Mass.–The jury in the embezzlement trial of former community development credit union activist Carol Aranjo was still in deliberations at press time. Aranjo and her family are charged with looting the once-prominent CDCU, D. Edward Wells FCU, which was shuttered by NCUA in 2003. In a case built by NCUA, federal prosecutors claim more than $2 million that Aranjo lent to family and cronies was missing from the one-time $7 million credit union when it was shut down. Defense lawyers claim the money wasn’t stolen but mismanaged.
Charged along with Aranjo are her husband, Alphonso Smith, and their son, Douglas Smith, both of whom were alleged to have received improper loans from the credit union.
