The Consumer Financial Protection Bureau announced an initiative to investigate potential consumer harm and compliance failures arising from debanking practices identified by the Office of the Comptroller of the Currency. The review covers nine large national banks named in the OCC’s report and may extend to other institutions, with the CFPB assessing compliance with federal consumer financial laws. The OCC found that JPMorgan Chase Bank, Bank of America, Citibank, Wells Fargo Bank, U.S. Bank, Capital One, PNC Bank, TD Bank and BMO Bank maintained policies or practices that denied or restricted financial access based on political or religious beliefs or lawful business activities. The report identified firearms, oil and gas, and tobacco among the sectors most affected. The CFPB will examine potential violations of the Equal Credit Opportunity Act, Fair Credit Reporting Act adverse action notice requirements, and prohibitions on unfair, deceptive or abusive acts or practices. The initiative forms part of the bureau’s implementation of Executive Order 14331 and builds on its review of regulatory materials, consumer complaints, and supervisory and enforcement data for evidence of unlawful debanking.
Consumer Financial Protection Bureau launches initiative to investigate OCC-identified debanking by nine large banks
The Consumer Financial Protection Bureau will investigate potential consumer harm and legal violations linked to debanking practices identified by the Office of the Comptroller of the Currency at nine large national banks. The review will assess restrictions based on political or religious beliefs or lawful business activities under federal credit reporting, fair lending and consumer protection laws.