Online Lenders Alliance Applauds Bipartisan Passage of H.R. 2706, The Financial Institutions Consumer Protection Act of 2017, by the House of Representatives
Legislation to End Operation Choke Point.
WASHINGTON, DC, December 11, 2017 – By a vote of 395 to 2, the House of Representatives today passed H.R. 2706, The Financial Institutions Consumer Protection Act of 2017, introduced by Congressman Blaine Luetkemeyer. This legislation recently passed the House Financial Services Committee with broad bipartisan support and represents a key step towards ensuring that the federal banking system will no longer be used as a political tool to target businesses. These practices came to light when a multi-agency effort devised under the Obama Administration called Operation Choke Point was uncovered. This initiative’s goal was to deny licensed, legitimate businesses access to the federal banking system simply because some in the Obama Administration deemed these businesses to be unacceptable.
H.R. 2706 ends these practices by prohibiting federal banking agencies from asking or ordering banks or credit unions to terminate accounts based solely on a customer’s reputation. Federal banking agencies would have to present a written notice to the financial institution that identifies the “valid reason” for terminating a specific account or group of accounts, as well as any laws that have been violated by the account holder.
Commenting on the House’s actions, President and CEO of the Online Lenders Alliance, Lisa McGreevy, stated:
“With the passage of ‘Stop Operation Chokepoint’ legislation by the House of Representatives, it has sent a clear bipartisan message that it is no longer acceptable to play politics with banking services. I commend Congressman Luetkemeyer for introducing H.R. 2706 and applaud his leadership in helping to end these practices. With the passage of H.R. 2706 by the House, we are one step closer to a day when banking regulators and examiners will no longer be able to intimidate banks from working with lawful companies.”
“We look forward to expedited Senate passage. I would encourage the Senate to take up and pass this legislation quickly.”
The legislation now heads to the Senate for consideration.
The Online Lenders Alliance (OLA) is the center for lending, technology and innovation, representing the growing industry of companies offering loans online. OLA members abide by a rigorous set of Best Practices and Code of Conduct to ensure their customers are fully informed and fairly treated.
Contact Michael Day, Policy Director