House Passes Bipartisan Legislation to Prevent Future Operation Choke Point Initiatives

House overwhelmingly passes a bill to end Obama-era program that discourages banks from servicing certain licensed, legally operating industries, including debt collection.

12/12/2017 9:42 AM

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House Passes Bipartisan Legislation to Prevent Future  Operation Choke Point Initiatives

In a 395-2 vote, the House of Representatives passed the Financial Institution Customer Protection Act of 2017 (H.R. 2706) sponsored by U.S. Rep. Blaine Luetkemeyer, R-Mo., Monday evening.

The bill requires 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, according to the House Financial Services Committee. The legislation also would require each federal banking regulator to report annually on the number of requests to terminate customer accounts that the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC) and the Federal Reserve have made to a bank. 

The bill was introduced in response to an Obama Justice Department and Federal Deposit Insurance Corporation initiative called “Operation Choke Point.” The Justice Department formally ended Operation Choke Point after President Donald Trump took office.

“Over the past several years, I have led the effort to combat Operation Choke Point, the Department of Justice and Federal Deposit Insurance Corporation-led initiative that sought to cut off legal businesses from the financial services they need to survive,” said Rep. Luetkemeyer, who serves as Chairman of the Financial Institutions and Consumer Credit Subcommittee. “It is simple: the federal government should not be able to intimidate financial institutions into dropping entire sectors of the economy as customers, based not on risk or evidence of wrongdoing, but purely on personal and political motivations. I thank Chairman Hensarling for ensuring this legislation was brought to the House floor and my colleagues for putting an end to this dangerous precedent.”

In April 2015, ACA International’s Board of Directors unanimously voted to support legislation and policy changes that would bring an end to Operation Choke Point.

Read more on the House Financial Services Committee’s website.


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

House Passes Bipartisan Legislation to Prevent Future  Operation Choke Point Initiatives

In a 395-2 vote, the House of Representatives passed the Financial Institution Customer Protection Act of 2017 (H.R. 2706) sponsored by U.S. Rep. Blaine Luetkemeyer, R-Mo., Monday evening.

The bill requires 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, according to the House Financial Services Committee. The legislation also would require each federal banking regulator to report annually on the number of requests to terminate customer accounts that the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC) and the Federal Reserve have made to a bank. 

The bill was introduced in response to an Obama Justice Department and Federal Deposit Insurance Corporation initiative called “Operation Choke Point.” The Justice Department formally ended Operation Choke Point after President Donald Trump took office.

“Over the past several years, I have led the effort to combat Operation Choke Point, the Department of Justice and Federal Deposit Insurance Corporation-led initiative that sought to cut off legal businesses from the financial services they need to survive,” said Rep. Luetkemeyer, who serves as Chairman of the Financial Institutions and Consumer Credit Subcommittee. “It is simple: the federal government should not be able to intimidate financial institutions into dropping entire sectors of the economy as customers, based not on risk or evidence of wrongdoing, but purely on personal and political motivations. I thank Chairman Hensarling for ensuring this legislation was brought to the House floor and my colleagues for putting an end to this dangerous precedent.”

In April 2015, ACA International’s Board of Directors unanimously voted to support legislation and policy changes that would bring an end to Operation Choke Point.

Read more on the House Financial Services Committee’s website.


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

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