“Operation Choke Point’s failures are yet another reminder that we need a data-driven principle-based approach to consumer lending policy. For years, Operation Choke Point has caused thousands of legal, licensed US businesses to lose their rights to access the U.S. banking system. This program dangerously inserted politics into essential banking services and its impact continues to threaten access to credit for American consumers today.
Recently unsealed court documents reveal an effort by high ranking unelected Obama era FDIC and OCC officials – some of which remain in place today – to discontinue banking relationships with small dollar online lenders based on their personal and subjective views of lawful industries. Unelected bureaucrats who abuse their power should face consequences that are commensurate with any damage done to consumers and businesses alike.
“The US Senate should immediately take up and pass The Financial Institutions Consumer Protection Act of 2017 to ensure that the federal banking system will no longer be used as a political tool to target businesses. President Trump should order federal bank regulators to adopt a code of conduct to repair the reputation and damage this episode has done to our prudential financial regulators and to prevent such bureaucratic actions in the future.”
