Industry Trade Groups Voice Privacy Concerns

The two trade associations representing the nation's community banks have formed a privacy working group to advance the interests of community banks in the evolving debate over consumer privacy protections.

The working group, which held its first meeting in January, was formed by the Independent Community Bankers of America and America's Community Bankers. The group will be co-chaired by Robert I. Gulledge, immediate past chairman of ICBA and chairman and president, Citizens Bank, Robertsdale, Ala., and Curtis L. Hage, immediate past chairman of ACB and chairman and CEO, Home Federal Bank, Sioux Falls, S.D.

"We want to ensure that the unique concerns of community banks are fully considered by Congress," said Gulledge. "We especially want to avoid new restrictions on information sharing that is essential to how we deliver products and services to our customers. Community banks use of outsourcing and joint ventures is essential to serving their customers' financial needs."

Added Hage "As Congress debates the reauthorization of the sharing preemptions in the Fair Credit Reporting Act, our goal will be to maintain a national standard and avoid a fragmented system of state-by-state standards."

The preemptions expire at the end of this year.