H.R. 987: Fair Access to Banking Act
The Fair Access to Banking Act aims to ensure that individuals and businesses have fair access to financial services from banks and other financial institutions. Here’s a breakdown of what the bill proposes:
Overview and Purpose
The bill is designed to prevent financial institutions from denying services based on subjective criteria or political motivations. It emphasizes the need for fair treatment of customers and is intended to:
- Ensure that customers can access financial services without discrimination.
- Require financial institutions to operate safely and comply with laws while enabling fair access to services.
- Preclude banks from restricting legal commerce for achieving particular public policies.
- Support businesses that might be considered politically unpopular, as long as they are lawful under federal law.
- Mandate that decisions about providing financial services are based on impartial, risk-based analyses reflecting empirical data.
Key Provisions
The Act proposes several amendments to existing banking legislation, including:
Access to Financial Services
Financial institutions (including banks and credit unions) are required to:
- Make their offered services available to all customers based on impartial criteria.
- Assess individual customers on a case-by-case basis, rather than employing blanket category-based evaluations.
- Provide written justifications to any customer whose request for services is denied, specifying the basis for this decision.
Restrictions on Discount Window Lending
Financial institutions with over $50 billion in assets would be prohibited from accessing federal discount window lending programs if they deny services to any law-abiding customer based on subjective criteria.
Payment Card Networks
Payment card networks cannot inhibit lawful access to their services based on political or reputational risks. Violating this provision could result in penalties of up to 10% of the service's value, capped at $10,000 per violation.
Legal Recourse
The Act allows individuals to take civil action against banks that violate the terms established under this law. If successful, claimants may receive:
- Reasonable attorney fees.
- Treble damages (three times the amount of actual damages incurred).
Impact on Financial Institutions
By mandating that access to financial services cannot be denied based on political bias or subjective evaluations, the bill aims to promote a more equitable banking environment. The legislation emphasizes that financial institutions must adhere to established risk management standards when determining the eligibility for services.
Definitions of Key Terms
The bill outlines specific definitions for terms such as:
- Financial Service: Includes a variety of banking services from lending to payment processing.
- Process of Denying Services: Refers to the refusal to enter into or termination of a financial service relationship based on criteria not related to a customer's legal standing.
- Covered Bank: A bank with over $50 billion in total assets that must comply with the requirements set forth in this legislation.
Relevant Companies
- JPM - JPMorgan Chase: As a major bank with extensive services, it will need to adjust its policies to ensure compliance with fair access as defined by the bill.
- BAC - Bank of America: Similar to JPMorgan, this bank may face regulatory changes related to customer access to financial products.
- WFC - Wells Fargo: This institution will likely have to revise its internal policies to align with the implications of the bill regarding fair access.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
78 bill sponsors
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TrackAndy Barr
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TrackMark E. Amodei
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TrackJodey C. Arrington
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TrackAaron Bean
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TrackJack Bergman
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TrackSheri Biggs
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TrackLauren Boebert
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TrackMike Bost
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TrackVern Buchanan
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TrackTim Burchett
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TrackEric Burlison
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TrackEarl L. "Buddy" Carter
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TrackBen Cline
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TrackAndrew S. Clyde
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TrackMike Collins
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TrackJames Comer
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TrackDan Crenshaw
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TrackScott DesJarlais
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TrackByron Donalds
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TrackTroy Downing
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TrackRon Estes
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TrackGabe Evans
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TrackRandy Feenstra
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TrackBrad Finstad
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TrackScott Fitzgerald
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TrackVirginia Foxx
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TrackScott Franklin
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TrackRussell Fry
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TrackRuss Fulcher
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TrackBrandon Gill
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TrackCarlos A. Gimenez
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TrackLance Gooden
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TrackSam Graves
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TrackMike Haridopolos
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TrackPat Harrigan
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TrackAndy Harris
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TrackDiana Harshbarger
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TrackKevin Hern
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TrackClay Higgins
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TrackAshley Hinson
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TrackRichard Hudson
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TrackBill Huizenga
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TrackNicholas A. Langworthy
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TrackRobert E. Latta
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TrackLaurel M. Lee
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TrackTracey Mann
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TrackDaniel Meuser
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TrackCarol D. Miller
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TrackJohn R. Moolenaar
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TrackBlake D. Moore
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TrackBarry Moore
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TrackTroy E. Nehls
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TrackDan Newhouse
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TrackAndrew Ogles
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TrackBurgess Owens
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TrackAugust Pfluger
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TrackMike Rogers
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TrackDavid Rouzer
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TrackJohn H. Rutherford
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TrackAustin Scott
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TrackKeith Self
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TrackPete Sessions
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TrackJefferson Shreve
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TrackAdrian Smith
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TrackElise M. Stefanik
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TrackW. Gregory Steube
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TrackDale W. Strong
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TrackClaudia Tenney
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TrackWilliam R. Timmons IV
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TrackDavid G. Valadao
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TrackBeth Van Duyne
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TrackAnn Wagner
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TrackTim Walberg
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TrackRandy K. Weber, Sr.
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TrackTony Wied
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TrackRoger Williams
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TrackJoe Wilson
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TrackRudy Yakym III
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Actions
2 actions
| Date | Action |
|---|---|
| Feb. 05, 2025 | Introduced in House |
| Feb. 05, 2025 | Referred to the House Committee on Financial Services. |
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