Cramer- House Passes H.R. 766 - Financial Institution Consumer Protection Act

Press Release

Congressman Kevin Cramer announced today the U.S. House of Representatives passed H.R. 766, the Financial Institution Consumer Protection Act. The bill stops the federal government from using initiatives like Operation Chokepoint to prohibit any federal banking agency from suggesting, requesting, or ordering a depository institution to terminate a "high risk" customer account, or prohibiting an institution from maintaining a banking relationship with a specific customer. The only exception is if the agency has a material reason to do so, and the reason is not solely based on risk to reputation.

These "high risk" businesses include retailers of firearms and ammunition. Some have found their banking relationships abruptly severed with little or no explanation and without reference to any activities of the individual businesses. A congressional investigation found the effect of these initiatives on legitimate businesses was not merely an unintended side-effect, but the outcome of a deliberate attempt to target entire business sectors, while legal, were deemed objectionable by regulators.

"President Obama has used Operation Chokepoint and the power of the federal government to subvert the Constitution and violate the Second Amendment rights of American citizens," said Cramer. "This legislation prevents this and any future administration from using their power to violate the rights of a business or an individual just because they disagree with their legal and constitutionally-protected activities."

Operation Chokepoint is a law enforcement initiative launched by the Department of Justice to combat consumer fraud by "choking off" businesses which have supposedly committed consumer fraud from access to the financial system.

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