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Financial Institution Customer Protection Act of 2023
12/15/2023, 4:05 PM
Summary of Bill S 245
The Financial Institution Customer Protection Act of 2023, also known as Bill 118 s 245, is a piece of legislation currently being considered by the US Congress. The main goal of this bill is to protect customers of financial institutions from having their accounts closed or restricted without proper justification.
Under this proposed law, financial institutions would be required to provide a clear explanation to customers if they decide to close or restrict their accounts. This explanation must be given in writing and must include the specific reasons for the action taken. Additionally, customers would have the right to appeal the decision and have it reviewed by a third party.
The bill also aims to prevent discrimination against certain groups of customers, such as those based on race, religion, or political affiliation. Financial institutions would be prohibited from closing or restricting accounts based on these factors. Overall, the Financial Institution Customer Protection Act of 2023 seeks to ensure that customers of financial institutions are treated fairly and have access to their accounts without arbitrary restrictions. It is currently being debated in Congress and may undergo changes before being voted on.
Under this proposed law, financial institutions would be required to provide a clear explanation to customers if they decide to close or restrict their accounts. This explanation must be given in writing and must include the specific reasons for the action taken. Additionally, customers would have the right to appeal the decision and have it reviewed by a third party.
The bill also aims to prevent discrimination against certain groups of customers, such as those based on race, religion, or political affiliation. Financial institutions would be prohibited from closing or restricting accounts based on these factors. Overall, the Financial Institution Customer Protection Act of 2023 seeks to ensure that customers of financial institutions are treated fairly and have access to their accounts without arbitrary restrictions. It is currently being debated in Congress and may undergo changes before being voted on.
Congressional Summary of S 245
Financial Institution Customer Protection Act of 2023
This bill specifies that a federal banking agency may not request or order a depository institution to terminate a customer account unless (1) the agency has a valid reason for doing so, and (2) that reason is not based solely on reputation risk.
Valid reasons for terminating an account include threats to national security and involvement in terrorist financing, including state sponsorship of terrorism.
A federal banking agency requesting a termination must provide the depository institution with notification and justification.
The bill also sets forth additional requirements for the Department of Justice when seeking subpoenas, summoning witnesses, or compelling document production in the course of conducting a civil investigation in contemplation of a civil proceeding involving certain banking laws.
Read the Full Bill
Current Status of Bill S 245
Bill S 245 is currently in the status of Bill Introduced since February 2, 2023. Bill S 245 was introduced during Congress 118 and was introduced to the Senate on February 2, 2023. Bill S 245's most recent activity was Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. as of February 2, 2023
Bipartisan Support of Bill S 245
Total Number of Sponsors
1Democrat Sponsors
0Republican Sponsors
1Unaffiliated Sponsors
0Total Number of Cosponsors
4Democrat Cosponsors
0Republican Cosponsors
4Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill S 245
Primary Policy Focus
Finance and Financial SectorAlternate Title(s) of Bill S 245
Financial Institution Customer Protection Act of 2023
Financial Institution Customer Protection Act of 2023
A bill to provide requirements for the appropriate Federal banking agencies when requesting or ordering a depository institution to terminate a specific customer account, to provide for additional requirements related to subpoenas issued under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and for other purposes.
Comments
Sponsors and Cosponsors of S 245
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