The ‘failing’ Senate’s effort to protect consumer privacy
Senate Majority Leader Mitch McConnell (R-Ky.) has a plan to protect consumers from financial institutions if they don’t want to give up their private details on their credit cards.
In his first legislative action since the government shutdown ended, McConnell, the top Republican in the Senate, announced he will propose legislation to create a “Consumer Privacy Protection Act.”
That bill, which will be debated next week in the House, would protect consumers by requiring financial institutions to collect data from consumers about the types of information they share on social media, such as their names and birthdates.
Financial institutions would also be required to make disclosures about any personal information they collect from consumers and share with third parties.
But in an apparent nod to the Obama administration, McConnell said he would ask the Department of Justice to enforce existing federal laws to protect the privacy of consumers.
The legislation also calls for a requirement for financial institutions that collect credit card information to notify consumers that the information is being used to target them for debt collection.
The proposed law also calls on financial institutions and credit card companies to notify customers when their information is collected and to provide them with a written notice.
It would require financial institutions with a collection program to notify borrowers when their personal information is used.
The Senate also passed legislation last week that would create a new consumer protection commission, a bipartisan group of senators who are tasked with implementing the legislation.
The proposal would create the Consumer Financial Protection Bureau, an independent agency that would be tasked with investigating consumer complaints, providing consumer relief and making enforcement decisions on consumer protection cases.
The consumer commission would also have the power to subpoena financial institutions, limit the collection of consumer information and prosecute financial institutions for deceptive conduct.
The bill also calls to amend the Dodd-Frank Wall Street Reform and Consumer Protection Act, which has not been used to impose a new rule on financial firms since it passed in 2010.