WASHINGTON–Democrats in Congress have introduced legislation that would make it illegal for banks and other financial firms to discriminate against customers because of race, religion, sexual orientation and other characteristics. The legislation is part of an effort meant to close a loophole in the Civil Rights Act that had been highlighted in June 2020 report by the New York Times.
The Fair Access to Financial Services Act, introduced by Democratic members of the Senate Banking Committee, would explicitly outlaw discrimination against bank customers.
“Currently, it is legal for banks and some other businesses to treat some customers differently as long as those customers eventually receive the services they are seeking,” the New York Times reported. “That means, in practical terms, that banks can racially profile their customers and delay their transactions, or ask them to take extra steps to prove their legitimacy, without risking penalties as long as they eventually do business with those customers.”
According to the Times, the loophole stems from the specificity of the Civil Rights Act of 1964, which lists the kinds of businesses — including movie theaters, restaurants and hotels — where discrimination is prohibited. As the Times noted, courts have ruled that the law does not apply to any businesses not on the list, leaving customers who say they have been mistreated with little recourse, especially in states like Georgia, where there are no statewide anti-discrimination laws.
The Bill’s Stipulations
The bill stipulates that “all persons shall be entitled to the full and equal enjoyment of the goods, services, facilities, privileges and accommodations of financial institutions,” the Times reported.
It is sponsored by Senators Sherrod Brown (D-OH), Tina Smith (D-MN), Cory Booker (D-NJ), Robert Menendez (D-NJ), Elizabeth Warren (D-MA) and Chris Van Hollen (D-MD).
“Too many Black and brown Americans experience racial profiling and unequal treatment when trying to access services at banks and other financial institutions,” Brown said in a statement to The Times. “Victims of discrimination are not even able to hold financial institutions accountable — it is shameful.”
According to the report, the two-and-a-half page bill lays out what bank customers who experience discrimination can do about it: Ask a federal court to order the bank or financial institution to cease the mistreatment and recoup lawyers’ fees from the institution if the court rules in their favor.