U.S. Sen. Kevin Cramer seeks to ensure large banks provide all customers fair access to their services after Office of the Comptroller of the Currency rule is put on hold. Editor’s note: This article is available for members only.
4/5/2021 14:00
U.S. Sen. Kevin Cramer, R-N.D., and 27 senators are cosponsoring a bill to prevent discrimination by banks and financial service providers against customers in certain industries, including debt collection. Cramer is a featured speaker at ACA International’s Washington Insights Virtual Fly-In April 22.
Cramer, through the Fair Access to Banking Act, seeks to continue a rule from the Office of the Comptroller of the Currency (OCC) that codifies more than a decade of OCC guidance stating that banks should conduct a risk assessment of individual customers, rather than make broad-based decisions affecting whole categories or classes of customers, when provisioning access to services, capital and credit.
The OCC rule was finalized in January and set to be published in the Federal Register. The rule was paused after the Biden administration issued a memorandum on pending rules at federal agencies, ACA previously reported.
ACA sent a letter to Cramer in support of the legislation.
While the number of ACA members impacted by banking terminations has declined since the height of Operation Choke Point, the highly questionable practice of categorical discrimination from banks against the debt collection industry continues.
“ACA strongly supports the Fair Access to Banking Act, which addresses these issues by ensuring that banks have a responsibility to make decisions about whether to provide a person with financial services on the basis of impartial criteria free from prejudice or favoritism,” said ACA CEO Mark Neeb.
In addition to protecting fair access to financial services, Cramer’s bill seeks to ensure providers operate in a safe and sound manner, according to a news release from his office.
“Discrimination has no place in our society, and big banks are no exception,” Cramer said. “I am grateful for my colleagues’ support in this effort, and I hope others will join.”
It builds off the Fair Access Rule and the Freedom Financing Act, which Cramer introduced last Congress.
“Over the last few years, we have seen a disturbing trend in the financial services industry involving the intentional discrimination of entire industries by the largest banks in the United States,” said U.S. Sen. Mike Crapo, R-Idaho, in the news release. “Companies and customers complying with federal and state law must have access to credit and services based on their creditworthiness, rather than social or political pressure.”
ACA members interested in learning more about Cramer’s work can register for the Washington Insights Virtual Fly-In April 22.
Cramer will speak in a morning session during the event, followed by a presentation by Neeb. See all the details and sign up here.