Democrats Introduce Legislation to Include FIs in Civil Rights Protection

The bill allows people who believe they have been discriminated against by a financial institution to file suit in federal court.

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A group of Democratic lawmakers in both Houses has introduced legislation that would extend the 1964 Civil Rights Act to cover credit unions and other financial institutions.

While the legislation has no chance of being enacted this year, the introduction of the measure by members of the Senate Banking Committee and House Financial Services Committee may indicate a Democratic priority for the 117th Congress.

Six Democrats, including Senate Banking Committee ranking Democrat Sherrod Brown of Ohio, introduced the legislation; Brown is likely to chair the committee if the Democrats capture control of the Senate.

In the House, the bill was introduced by Democratic Reps. Hank Johnson of Georgia and Joyce Beatty of Ohio. Beatty is chairwoman of the Financial Services Committee’s Diversity and Inclusion Subcommittee.

In introducing the legislation, the lawmakers noted that while the Civil Rights Act of 1964 outlawed discrimination in certain places of public accommodations, it does not cover financial institutions.

“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. “Victims of discrimination are not even able to hold financial institutions accountable – it is shameful.”

The three-page bill would allow people who believe they have been discriminated against by a financial institution to file suit in federal court.

The legislation has been endorsed by civil rights organizations, including the NAACP, as well as Americans for Financial Reform and the Center for Responsible Lending.

The NCUA recently announced an ACCESS initiative that is designed to make changes in agency regulations, policies and programs to encourage greater financial inclusion at the NCUA and the credit union system.