Wednesday, June 13, 2012

On Disclosures and Data Leaks

Below are several stories that I thought would be of interest. The first deals with checking account disclosure documents at the largest credit unions. The other story looks at an erroneous data leak of members' information from Bethpage FCU.

A New York Times blog, citing a recent Pew Charitable Trust report, noted that credit union checking account disclosure documents at the 10 largest credit unions had room for improvement. While credit union checking account documents are shorter than bank disclosures, the report found that credit union documents do not disclose information that would allow a customer to compare account fees, terms and conditions. The Pew Report also found that credit unions are prone to using confusing terminology making it difficult for consumers to compare accounts.

The Long Island Press is reporting that Bethpage Federal Credit Union erroneously posted for a month on the Internet limited personal and financial data of nearly 86,000 members The information that made it onto an unsecured website included members’ names, addresses, dates of birth, expiration dates of cards, checking and savings account numbers. But the leaked information did not include members’ Social Security numbers, PIN numbers or three-digit security codes. According to NewsDay, the leaked data was discovered by an employee's child doing a Google search on the child's name.

1 comment:

  1. Did I read this correctly from the New York blog? "No credit unions made reference in their disclosures to amounts charged for “extended” overdraft fees, which are fees charged if an overdraft isn’t repaid within a specified amount of time. That’s probably because the credit unions don’t charge such fees, the report said, but there’s no way for a consumer to know that without contacting the credit union." So, now credit unions need to start disclosing fees they don't charge?

    Also Keith, when you say, " The Pew Report also found that credit unions are prone to using confusing terminology", you're leaving out two key words. The blog actually says, "The Pew report found that credit unions, like banks, are also prone to using confusing terminology." I'm confused why you would choose to omit those two words...



The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.