Fair Access to Banking Act

This bill aims to stop banks, credit unions, and payment card networks from cutting off lawful customers because of politics or reputation concerns. If a covered institution refuses to do business with someone who follows the law, it could lose access to key systems like the Federal Reserve’s emergency lending “discount window” and the Automated Clearing House (ACH) network, and could face other penalties, including possible loss of federal deposit insurance . Payment card networks would be barred from blocking access to their services because of political or reputational risk, with civil fines for violations. The bill also says people in lawful but sometimes unpopular industries should still get fair access to financial services.

Covered banks must make the services they already offer available on equal terms to everyone in their market. They can only deny someone if the person clearly fails neutral, risk-based standards set ahead of time—not because of “reputational risk.” If they deny service, they have to give written reasons. People who are harmed can sue and, if they win, recover attorney’s fees and triple damages.

Key points

• Who is affected: Large banks and state banks, certain very large insured banks, credit unions, and payment card networks; customers who follow the law, including those in politically unpopular but lawful businesses .
• What changes:
  • Big banks that refuse lawful customers can’t use the Fed’s discount window; similar limits apply to ACH access .
  • Payment card networks can’t block services over political or reputational concerns; fines can apply (up to 10% of the value involved, capped at $10,000 per violation).
  • Banks must use clear, pre-set, risk-based standards and provide written reasons for denials; “reputational risk” alone doesn’t count.
  • Possible penalties include loss of deposit insurance for some institutions and other restrictions.
• Enforcement: People can sue and may receive attorney’s fees and triple damages if they win.
• When: Would take effect if enacted; the provided text does not specify an effective date.