Committee sends bill requiring banks to explain account closures to House floor after 15-2 vote

Representative Josh Tanner, sponsor and a lawmaker from District 14, told the House Business Committee on March 13 that Senate Bill 10 27 aims to increase transparency when large banks and merchant processors close or restrict customer accounts.

"This bill deals with transparency," Representative Josh Tanner said, adding the measure would require covered institutions to give customers an explanation when their accounts are closed and set deadlines for responses.

The bill would apply to banks and merchant processors with at least $100,000,000,000 in assets and would allow the Idaho Attorney General to investigate and enforce the law under the Idaho Consumer Protection Act. It also creates a timetable in which customers may request an explanation and the financial institution must respond; Tanner described a 90-day window for a customer to seek an explanation and a 14-day response period for the institution.

The proposal drew public testimony from residents and lawyers who said account closures have harmed individuals and nonprofits. Tony Ulrich, State Chairman of the Constitution Party of…