(Idaho State) U.S. Senator Mike Crapo (R-Idaho), a senior member of the Senate Banking Committee, and U.S. Senator Jim Risch (R-Idaho) have co-sponsored the Fair Access to Banking Act, which would prevent discrimination by banks and financial services providers against constitutionally-protected industries and law-abiding businesses, such as firearms manufacturers and energy producers. The bill, led by Senator Kevin Cramer (R-North Dakota), is co-sponsored by 38 additional Senate Republicans.
“The financial services industry’s intentional discrimination of lawful businesses continues a disturbing trend established over the last few years,” said Crapo. “Individuals and companies in compliance with federal and state law must have full access to credit services based on their creditworthiness, not social or political pressure.”
“Financial institutions should never deny access to services due to political ideologies,” said Risch. “The Fair Access to Banking Act prevents banks from discriminating against law-abiding Idahoans for their viewpoints and opinions.”
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 person who meets certain criteria;
- Prevent payment card networks from discriminating against any qualified and legally-compliant person because of political or reputational considerations;
- Require qualified banks to provide written justification for why they are denying a person financial service; and
- Punish providers who fail to comply with the law by disqualifying them from using discount window lending programs, terminating their status as an insured depository institution or insured credit union, or imposing a civil penalty of up to $10,000 per violation.
Click here for bill text.
During the Obama Administration, Crapo fought against “Operation Choke Point,” an initiative in which federal agencies pressured banks to “choke-off” payment systems and banking services access to political disfavored industries, such as guns and ammunition businesses. Crapo challenged banks issuing guidelines that would effectively cut off financial services to law-abiding firearm manufacturers, retailers and firearms purchasers if they do not comply with the bank’s firearms preferences. Crapo and Risch also previously co-sponsored this legislation in the 117th and 118th Congresses.
