Senate passes Fair Access to Financial Services Act after hour-long debate over ‘debanking’ and litigation risks

The West Virginia Senate on March 31 passed Senate Bill 663, the Fair Access to Financial Services Act, by a vote of 25 yays to 9 nays after more than an hour of floor debate over whether the measure would spur litigation against banks or provide necessary protections for customers who say they were closed out of accounts for political or reputational reasons.

The bill, described on the floor as designed to make it unlawful for an eligible financial institution to deny certain services on the basis of specified characteristics or views, creates a civil cause of action and authorizes recovery of damages, with statutory minimums discussed repeatedly in debate. “If the bank intended harm and that could be proven, it's 3 times actual harm,” said the senator from Wood in support, arguing the bill is a “freedom bill” to push back…