A group of Republican senators, led by U.S. Sens. John Curtis (R-UT) and Kevin Cramer (R-ND), introduced legislation that seeks to prevent large banks from denying fair access to financial services to lawful businesses or industries.
The Fair Access to Banking Act would penalize banks and credit unions with over $10 billion in total consolidated assets, or their subsidiaries, if they refuse to do business with any legally compliant, credit-worthy person. It would also prevent payment card networks from discriminating against any qualified person because of political or reputational considerations.
Further, it would require qualified banks to provide written justification for why they are denying a person financial services. In addition, it would penalize providers who fail to comply with the law. The penalties would be to disqualify them from using discount window lending programs, terminate their status as an insured depository institution or credit union, or impose a civil penalty of up to $10,000 per violation.
“Banks are not regulators, and no lawful business should be denied access to financial services based on the political or ideological whims of a financial institution,” Curtis said. “In Utah, we value fair competition and the right to build a business without fear of discrimination. By ensuring banks use impartial, risk-based criteria when evaluating customers, our commonsense legislation protects industries like firearms, energy producers, and cryptocurrencies.”
The bill is endorsed by the National Shooting Sports Foundation, National Rifle Association, National Cattlemen’s Beef Association, The Digital Chamber, Blockchain Association, Independent Petroleum Association of America, Online Lenders Alliance, Day 1 Alliance, GEO Group, Lignite Energy Council, National Association of Wholesaler-Distributors, and National Mining Association.
“The Fair Access to Banking Act ensures that banks provide fair access to services and enacts strict penalties for categorically discriminating against legal industries and individuals,” Cramer said.
The bill was cosponsored by an additional 39 Republicans in the Senate.