Fair Access to Banking Act

# Fair Access to Banking Act Summary **What the bill would do:** The Fair Access to Banking Act would restrict banks, credit unions, and payment card networks from refusing service to customers who follow the law. Currently, these financial institutions can deny services for various reasons, including reputational concerns. This bill would limit their ability to do so—they could only refuse service if a customer fails to meet specific, quantifiable, risk-based standards that the institution established beforehand. The bill specifically prohibits denying service based on "reputational risk" to the bank itself. **Who it affects and key provisions:** The bill primarily affects financial institutions and their customers.

If passed, banks that violate these rules could lose access to electronic funds transfer systems and lending programs, have their deposit insurance terminated, and face civil penalties. Individuals denied banking services could sue financial institutions for violations. The bill emphasizes that any denial standards must be objective, documented in advance, and applied impartially—not based on the bank's concerns about its public image or reputation. **Current status:** The bill (S. 401) was introduced in the 119th Congress by Senator Kevin Cramer (R-ND) and is currently in committee, meaning it has not yet been voted on by the full Senate.