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April 10, 2015
Committee chairmen urge regulators to reject Choke Point
Republican leaders on the House Financial Services Committee last week called on financial regulatory agencies to "publicly disclaim … past, present and future involvement" with the Justice Department's "Operation Choke Point."
The Operation Choke Point initiative was launched to fight consumer fraud by denying fraudulent businesses access to banking services and holding financial institutions and third-party processors accountable if they continue to serve a client operating in a fraudulent manner.
Committee Chairman Jeb Hensarling, R-Texas, and all five subcommittee chairmen, signed onto a letter sent to the Office of the Comptroller of the Currency, CFPB , the Federal Reserve, and NCUA.
The letter emphasized that agencies need to establish that any "deposit account terminations are based on sound reasoning and potential risk, not political motive." The lawmakers also said the committee will continue to investigate the initiative.
Last year, NAFCU joined with other financial services trades in issuing a joint statement on Operation Choke Point that was submitted to the House Financial Services Committee. The trades noted concerns that this program "could seriously deter the natural growth and development of e-commerce and stifle future economic growth."
NAFCU continues to monitor this issue and its effects on credit unions.
The Operation Choke Point initiative was launched to fight consumer fraud by denying fraudulent businesses access to banking services and holding financial institutions and third-party processors accountable if they continue to serve a client operating in a fraudulent manner.
Committee Chairman Jeb Hensarling, R-Texas, and all five subcommittee chairmen, signed onto a letter sent to the Office of the Comptroller of the Currency, CFPB , the Federal Reserve, and NCUA.
The letter emphasized that agencies need to establish that any "deposit account terminations are based on sound reasoning and potential risk, not political motive." The lawmakers also said the committee will continue to investigate the initiative.
Last year, NAFCU joined with other financial services trades in issuing a joint statement on Operation Choke Point that was submitted to the House Financial Services Committee. The trades noted concerns that this program "could seriously deter the natural growth and development of e-commerce and stifle future economic growth."
NAFCU continues to monitor this issue and its effects on credit unions.
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