S 563 — Fair Access to Banking Act

Summary

Fair Access to Banking Act This bill restricts certain banks, credit unions, and payment card networks from refusing to do business with a person who is in compliance with the law. Restrictions include prohibiting the use of certain lending programs, initiating the process of terminating an institution's depository insurance, and instituting specified civil penalties.

Bill Text

• Introduced Introduced in Senate Current html March 03, 2021

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill prohibits certain large financial institutions from using discount window lending programs if they deny services to lawful customers based on subjective criteria.

• 12 U.S.C. 347b

  (c) Prohibition on Use of Discount Window Lending Programs.--No member bank with more than $10,000,000,000 in total consolidated assets, or subsidiary of the member bank, may use a discount window lending program if the member bank or subsidiary refuses to do business with any person who is in compliance with the law, including section 8 of the Fair Access to Banking Act.

  This change adds a prohibition preventing large member banks from using discount window lending if they refuse to serve compliant customers.

• 12 U.S.C. 1818(a)(2)(A)

  or → ; or

  This change adjusts the structure of the existing law to accommodate the new condition for involuntary termination of insurance based on refusal to serve lawful customers.

• 12 U.S.C. 1818(a)(2)(A)

  the end and inserting → (iv) an insured depository institution with more than $10,000,000,000 in total consolidated assets, or subsidiary of the insured depository institution, that refuses to do business with any person who is in compliance with the law, including section 8 of the Fair Access to Banking Act.

  This change adds a condition that large insured depository institutions may face involuntary insurance termination if they refuse business to compliant customers.

• 12 U.S.C. 342

  Provided further, That no such nonmember bank or trust company or other depository institution with more than $10,000,000,000 in total consolidated assets, or subsidiary of such nonmember bank or trust company or other depository institution, may refuse to do business with any person who is in compliance with the law, including section 8 of the Fair Access to Banking Act:

  This change requires large nonmember banks to provide services to lawful customers, aligning them with the established criteria for fair access.

• 12 U.S.C. 1786

  or is refusing or has refused, or has a subsidiary that is refusing or has refused, to do business with any person who is in compliance with the law, including section 8 of the Fair Access to Banking Act,

  This addition extends similar prohibitions to credit unions regarding fair access to financial services.

• 15 U.S.C. 1693o-2(c)

  No payment card network, including a subsidiary of a payment card network, may, directly or through any agent, processor, or licensed member of the network, by contract, requirement, condition, penalty, or otherwise, prohibit or inhibit the ability of any person who is in compliance with the law, including section 8 of this Act, to obtain access to services or products of the payment card network because of political or reputational risk considerations.

  This prohibition ensures that payment card networks cannot deny services based on discriminatory or reputational reasons against compliant individuals.

Action History

1. March 18, 2021

   Committee on Banking, Housing, and Urban Affairs. Hearings held. Hearings printed: S.Hrg. 117-214.

2. March 03, 2021

   Introduced in Senate

3. March 03, 2021

   Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Sponsors

• Kevin Cramer · Primary

Subjects