WASHINGTON, D.C (June 4, 2025) |
In advance of the House Financial Services Subcommittee hearing tomorrow, the Defense Credit Union Council (DCUC) has urged lawmakers to craft balanced data privacy legislation that protects consumers—especially military families—without imposing conflicting or duplicative compliance burdens on credit unions.
Representing over 180 credit unions serving military installations and more than 40 million members worldwide, DCUC expressed its support for comprehensive federal privacy protections while warning against legislative provisions that could undermine existing financial regulatory frameworks such as the Gramm-Leach-Bliley Act (GLBA).
“Credit unions are already held to some of the highest data privacy and security standards in the financial sector,” says Anthony Hernandez, DCUC President/CEO. “Any new legislation must recognize those existing safeguards while avoiding unintended consequences—such as overlapping laws, inconsistent state regulations, or legal exposure through a private right of action. Our priority is protecting the privacy of service members, not diverting resources into unnecessary litigation.”
DCUC’s letter outlined several key priorities: preserving the protections already embedded in GLBA and HIPAA; ensuring strong federal preemption to avoid a patchwork of state laws; and applying privacy standards equally across all entities that collect or process consumer data—not just financial institutions.
“Military families face unique vulnerabilities to identity theft and financial exploitation,” adds Jason Stverak, DCUC Chief Advocacy Officer. “We need smart, uniform data privacy laws that protect consumers without undermining institutions that are already compliant. Defense credit unions are often the first and best line of defense against financial fraud for military households—and Congress should ensure we can continue in that role without interference from redundant or contradictory regulation.”
DCUC’s statement also voices concern over proposals to introduce a private right of action, warning that it could lead to frivolous lawsuits that threaten the financial health of compliant credit unions and reduce service availability to members.
DCUC reaffirmed its commitment to working with Congress to develop a federal privacy framework that is clear, consistent, and responsive to the distinct needs of both consumers and financial institutions.
For more information, please contact Jason Stverak at jstverak@dcuc.org and visit dcuc.org/advocacy.