ACA International Continues Advocacy for Permanent End to Operation Choke Point

Updated Senate legislation to protect banking relationships for legitimate businesses is critical for ACA members and the accounts receivable management industry.

11/27/2019 8:00 AM

AdvocacyNewsGovernment
ACA International Continues Advocacy for Permanent End to Operation Choke Point

ACA International is urging the U.S. Senate to include similar provisions found in House legislation to address Operation Choke Point, which would help limit termination of banking relationships for legitimate businesses.

“Operation Choke Point has long sought to deprive legal businesses of vital financial services, and ACA International strongly encourages including its prohibition in the Secure and Fair Enforcement Banking Act of 2019, authored by Senators Jeff Merkley, D-Ore., and Cory Gardner, R-Colo., or other Senate legislation.,” said ACA CEO Mark Neeb in a letter to Senate Banking Committee Chairman Mike Crapo, R-Idaho.

Operation Choke Point was a controversial Obama-era program in which the Federal Deposit Insurance Corporation and U.S. Department of Justice (DOJ) reportedly applied pressure to financial institutions to cut off financial services to certain licensed, legally operating industries, including debt collection.

In recent years, the DOJ acknowledged that disfavoring certain businesses and not providing due process is problematic and ostensibly ended Operation Choke Point; however, businesses in the accounts receivable management industry and ACA members continue to have their banking relationships unfairly terminated.

Legislation recently passed in the U.S. House of Representatives has components to increase prevention of Operation Choke Point.

H.R.1595, authored by U.S. Reps. Ed Perlmutter, D-Colo., and Blaine Luetkemeyer R-Mo., passed through the House of Representatives in September 2019 with strong bipartisan support.

“ACA International stands in support of this legislation because of a key provision that prohibits federal banking regulators from recommending, or incentivizing, a bank to halt providing services, or downgrading any kind of services to legal businesses such as those in the accounts receivable management industry,” Neeb said.

H.R.1595 would require federal banking agencies to provide banks or credit unions written justification of any request to terminate or restrict a customer’s account, except in instances of national security.

“These would be important protections for legal businesses that have been unfairly targeted by certain regulators and examiners, and we support these requirements,” Neeb said. “We encourage the Senate to consider including these important provisions found in H.R. 1595 in Senate legislation and moving this issue forward.”

ACA has advocated for the end of Operation Choke Point by supporting legislation policy changes during the last several years and will keep moving forward with this advocacy on behalf of members impacted by the program.

Learn more about ACA’s advocacy efforts and strategy during a complimentary, members-only Hot Topic webinar Dec. 17. Speakers include Neeb, Jack Brown III, president Gulf Coast Collection Bureau Inc., Leah Dempsey, vice president, senior counsel, federal advocacy, and Andrew Madden, vice president, state unit and government affairs. Join ACA’s Advocacy Team for a recap of this year’s efforts and a discussion on the strategy for 2020, registration is open now.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

ACA International Continues Advocacy for Permanent End to Operation Choke Point

ACA International is urging the U.S. Senate to include similar provisions found in House legislation to address Operation Choke Point, which would help limit termination of banking relationships for legitimate businesses.

“Operation Choke Point has long sought to deprive legal businesses of vital financial services, and ACA International strongly encourages including its prohibition in the Secure and Fair Enforcement Banking Act of 2019, authored by Senators Jeff Merkley, D-Ore., and Cory Gardner, R-Colo., or other Senate legislation.,” said ACA CEO Mark Neeb in a letter to Senate Banking Committee Chairman Mike Crapo, R-Idaho.

Operation Choke Point was a controversial Obama-era program in which the Federal Deposit Insurance Corporation and U.S. Department of Justice (DOJ) reportedly applied pressure to financial institutions to cut off financial services to certain licensed, legally operating industries, including debt collection.

In recent years, the DOJ acknowledged that disfavoring certain businesses and not providing due process is problematic and ostensibly ended Operation Choke Point; however, businesses in the accounts receivable management industry and ACA members continue to have their banking relationships unfairly terminated.

Legislation recently passed in the U.S. House of Representatives has components to increase prevention of Operation Choke Point.

H.R.1595, authored by U.S. Reps. Ed Perlmutter, D-Colo., and Blaine Luetkemeyer R-Mo., passed through the House of Representatives in September 2019 with strong bipartisan support.

“ACA International stands in support of this legislation because of a key provision that prohibits federal banking regulators from recommending, or incentivizing, a bank to halt providing services, or downgrading any kind of services to legal businesses such as those in the accounts receivable management industry,” Neeb said.

H.R.1595 would require federal banking agencies to provide banks or credit unions written justification of any request to terminate or restrict a customer’s account, except in instances of national security.

“These would be important protections for legal businesses that have been unfairly targeted by certain regulators and examiners, and we support these requirements,” Neeb said. “We encourage the Senate to consider including these important provisions found in H.R. 1595 in Senate legislation and moving this issue forward.”

ACA has advocated for the end of Operation Choke Point by supporting legislation policy changes during the last several years and will keep moving forward with this advocacy on behalf of members impacted by the program.

Learn more about ACA’s advocacy efforts and strategy during a complimentary, members-only Hot Topic webinar Dec. 17. Speakers include Neeb, Jack Brown III, president Gulf Coast Collection Bureau Inc., Leah Dempsey, vice president, senior counsel, federal advocacy, and Andrew Madden, vice president, state unit and government affairs. Join ACA’s Advocacy Team for a recap of this year’s efforts and a discussion on the strategy for 2020, registration is open now.


Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse.

Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training page to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.


Subscribe to ACA Daily NEWSROOM

Loading...

Loading...

Scroll to Top