Tillis Cosponsors Bill to Prevent Discrimination by Financial Service Providers

Press Release

Recently, U.S. Senator Thom Tillis (R-NC) cosponsored the Fair Access to Banking Act, a bill introduced by Senator Kevin Cramer (R-ND) that prevents discrimination by banks and financial service providers against constitutionally-protected industries and law-abiding businesses.

"Financial service providers should never be allowed to ban law-abiding businesses just because they think it's politically expedient," said Senator Tillis. "This legislation is an important step in preventing discrimination and protecting fair access to financial services."

As stated in the legislation, the purpose of the Fair Access to Banking Act is to protect fair access to financial services and to ensure banks operate in a safe and sound manner, basing their judgments and decisions on impartial, individualized risk-based analysis developed through empirical data and evaluated under quantifiable standards. If enacted, this bill would:

· Penalize banks and credit unions with over $10 billion in total consolidated assets, or their subsidiaries, if they refuse to do business with any legally-compliant person who meets the criteria described above;
· Prevent payment card networks from discriminating against any qualified and legally-compliant person because of political or reputational considerations;
· Codify the core requirements found in the Trump Administration's Fair Access Final Rule;
· Require qualified banks to provide written justification for why they are denying a person financial services; and
· Punish providers who fail to comply with the law by disqualifying them from using discount window lending programs, terminating their status as an insured depository institution or insured credit union, or imposing a civil penalty of up to $10,000 per violation.

The need for this legislation is driven by the recent actions of some of the largest United States banks who are using their economic standing to discriminate against energy producers. Last year, five of the country's largest banks announced they will not provide loans or credit to support oil and gas drilling in the Arctic National Wildlife Refuge even though Congress explicitly authorized it. In the fall, JP Morgan Chase declared it would refuse financial services to coal producers, and Bank of America began a politically-motivated effort to achieve net-zero greenhouse gas emissions from its financing activities by 2050, an effort directly targeting producers of reliable American energy. Discrimination by financial service providers also extends to industries protected by the Second Amendment, with banks like Capital One including "ammunitions, firearms, or firearm parts" in its prohibited payments section, and payment services like Apple Pay and PayPal denying their services for transactions involving firearms or ammunition.

The bill has a wide array of industry support as well, including endorsements from the National Shooting Sports Foundation (NSSF), Independent Petroleum Association of America (IPAA), National Rifle Association (NRA), Kentucky Coal Association, Lignite Energy Council, National Mining Association, Amusement and Music Operators Association, National Association of Wholesaler-Distributors, and the Day 1 Alliance.

Read the text of the bill HERE.

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