Newsroom
November 20, 2014
Luetkemeyer bill would counter 'Choke Point'
Rep. Blaine Luetkemeyer, R-Mo., introduced legislation that would rein in the Justice Department's "Operation Choke Point" initiative by restricting its ability to order the termination of accounts in financial institutions, including credit unions.
The "Financial Institution Customer Protection Act," H.R. 5758, would require federal banking regulators, including NCUA, to provide material reason beyond reputational risk for ordering a financial institutions to terminate a banking relationship. It would also require regulators to put any order to terminate a customer's account into writing.
"This legislation is straightforward by stating that federal banking agencies must put in writing any suggestion to terminate a customer's banking account and by requiring agencies to define terms by which they regularly use in the examination process, and by returning the powers vested in FIRREA [the Financial Institutions Reform, Recovery, and Enforcement Act] to their original purpose," Luetkemeyer said in a statement.
The Operation Choke Point initiative was launched in an effort 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.
In April, 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 "Financial Institution Customer Protection Act," H.R. 5758, would require federal banking regulators, including NCUA, to provide material reason beyond reputational risk for ordering a financial institutions to terminate a banking relationship. It would also require regulators to put any order to terminate a customer's account into writing.
"This legislation is straightforward by stating that federal banking agencies must put in writing any suggestion to terminate a customer's banking account and by requiring agencies to define terms by which they regularly use in the examination process, and by returning the powers vested in FIRREA [the Financial Institutions Reform, Recovery, and Enforcement Act] to their original purpose," Luetkemeyer said in a statement.
The Operation Choke Point initiative was launched in an effort 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.
In April, 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.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.