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House Passes FI Consumer Protection Act, HR 2706
Tuesday, December 12, 2017 6:50 AM

The House passed the Financial Institution Consumer Protection Act (H.R. 2706) on Monday, a bill consistent with CUNA’s bipartisan, pro-consumer Campaign for Common-Sense Regulation by removing barriers keeping credit unions from more effectively serving their members.

H.R. 2706, the Financial Institution Customer Protection Act of 2017 sponsored by Rep. Blaine Luetkemeyer (R-Mo.), 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. 

Specifically, H.R. 2706 specifies that a federal banking agency may not request or order a depository institution to terminate a customer account unless:

  • The agency has a material reason for doing so; and
  • That reason is not based solely on reputation risk.

The bill was originally focused on the Department of Justice’s Operation Choke Point, an initiative CUNA had concerns was leading to consumers being locked out of the financial system. However, CUNA and credit unions saw a victory in August when the Department of Justice announced it had ended Operation Choke Point.

The bill passed 395 to 2 and now moves to the Senate. Read the bill in its entirety.