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Senate passes Fair Access to Financial Services Act after extended floor debate
Summary
The West Virginia Senate passed legislation creating a private cause of action for people who say they were denied banking services for protected characteristics; the bill applies to very large financial institutions and includes caps on damages and a remedy for frivolous suits.
CHARLESTON, W.Va. — The West Virginia Senate on March 29 passed legislation titled the Fair Access to Financial Services Act that allows individuals to sue very large financial institutions that decline to provide accounts or services for reasons the law bars.
The bill applies only to financial institutions with $100,000,000,000 or more in total assets and creates a private cause of action capped at "actual damages or $10,000, whichever is greater," with treble damages (three times actual damages) if intentional harm is proven, a two-year statute of limitations and a mechanism for the institution to recover fees and costs if a court finds a suit is frivolous.
Supporters said the bill is a targeted response to so‑called "debanking" of ordinary people and organizations. "If it can happen to them, it can happen to any of us," said the Senator from Ohio in floor remarks describing high‑profile debanking cases. Several senators recounted constituents who they said lost access to accounts and the downstream harms to credit, housing and everyday life.
Opponents warned the bill will invite litigation and harm the state's business climate. "This is an easy sue‑and‑settle bill," said the Senior Senator from the fourth, arguing banks would face a flood of claims and higher insurance costs. Other senators pressed on whether the bill imposes a fee‑shifting or "loser‑pays" regime and how courts would determine attorney fees.
Floor debate also clarified several provisions: the measure exempts community banks and applies only to institutions meeting the $100 billion asset threshold; it contains a provision allowing a financial institution to recover reasonable attorney fees and costs if the court finds a frivolous claim by "clear and convincing" evidence; and it sets a two‑year statute of limitations for private suits. Supporters pointed to a civil remedy rather than criminal penalties and emphasized limits on damages to avoid outsized judgments.
The Senate approved the bill by voice and then by recorded vote; the clerk reported 25 yeas and 9 nays, and the presiding officer declared the bill passed. Senators debating the bill repeatedly referenced federal examples and the Telephone Consumer Protection Act (TCPA) in committee discussion about fee‑shifting and remedies.
The measure will now be communicated to the House for its action.
