H.R. 4096: Financial Empowerment and Protection Act

This legislation, known as the Financial Empowerment and Protection Act, outlines specific requirements for certain companies regarding the opening of joint accounts for cohabitating adults and addresses lease termination fees for victims of domestic violence.

Requirements for Joint Accounts

The bill mandates that covered companies must allow consenting cohabitating adults to open joint accounts. Here are the main provisions:

• Account Opening: Covered companies are obligated to permit consenting cohabitating adults, who will be their customers, to create joint accounts. These accounts can be used to manage services provided by the company and to pay bills associated with those services.
• Consent Needed: Both adults must agree to open the joint account.
• Account Information: Covered companies are required to provide information about the joint account at the request of either cohabitating adult. This includes details about bills, correspondence, and product or service information.
• Notification to Account Holders: Companies must inform both adults about the information that will be shared between them regarding the joint account.
• Privacy Notices: They must provide privacy notices in accordance with existing federal regulations, specifically Regulation P.
• Civil Actions for Non-Compliance: If a covered company fails to meet these requirements, a cohabitating adult may take legal action against the company and seek damages of up to $1,000 for each violation.

Effective Date

The requirements for joint accounts will take effect 180 days after the bill is enacted.

Definitions

• Consenting Cohabitating Adults: This term refers to any adults who agree to live together. In the case of childcare providers, it specifically includes custodial parents of children served by the provider.
• Covered Company: This term includes various types of companies and service providers, such as:
  • Electric utilities
  • Gas utilities
  • Water utilities
  • Operators of sanitary landfills
  • Internet access providers
  • Telephone service providers
  • Landlords and property managers
  • Licensed childcare providers
  • Originators of residential mortgage loans
  • Residential mortgage loan servicers
  • Multichannel video programming distributors
  • Creditors offering various credit plans

Prohibition on Fees for Early Lease Termination

The bill amends provisions in the Violence Against Women Act to prohibit housing applicants or tenants from being charged fees for early termination of leases if they are victims of domestic violence, dating violence, sexual assault, or stalking. This allows individuals in these situations to exit their leases without financial penalties.

Relevant Companies

• DUK (Duke Energy Corp): As an electric utility company, Duke Energy may be impacted by the requirement to open joint accounts for customers who are cohabitating adults.
• SRE (Sempra Energy): Similar to Duke, Sempra, which operates in the energy sector, may also need to comply with the joint account provisions.
• AAPL (Apple Inc.): As a provider of various services, including subscription services, Apple may see implications for its billing practices for cohabitating customers.
• T (AT&T Inc.): As a provider of telephone and internet services, AT&T may have to adjust its policies regarding joint accounts for cohabitating adults.
• VZ (Verizon Communications Inc.): Verizon, which provides telecommunications services, would also be required to accommodate these joint account provisions.