Bill Text: MS HB1237 | 2026 | Regular Session | Introduced
Bill Title: Mississippi Guaranteeing Fair Banking Act; create.
Sponsorship: Bipartisan Bill
Status: (Failed) 2026-02-03 - Died In Committee [HB1237 Detail]
Download: Mississippi-2026-HB1237-Introduced.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Banking and Financial Services
By: Representative Aguirre
House Bill 1237
AN ACT TO BE KNOWN AS THE MISSISSIPPI GUARANTEEING FAIR BANKING ACT; TO PROVIDE THAT, IF A FINANCIAL INSTITUTION TAKES AN ADVERSE ACTION AGAINST A PERSON, THAT PERSON MAY REQUEST A STATEMENT OF SPECIFIC REASONS FOR THE ADVERSE ACTION; TO PROHIBIT FINANCIAL INSTITUTIONS FROM DISCRIMINATING IN THE PROVISION OF FINANCIAL SERVICES TO A PERSON DUE TO A PERSON'S RELIGION, SPEECH OR PARTICIPATION IN A LAWFUL ECONOMIC ACTIVITY; TO PROVIDE DAMAGES FOR VIOLATIONS OF THIS ACT; TO AMEND SECTION 75-24-5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A VIOLATION OF THIS ACT SHALL BE AN UNFAIR OR DECEPTIVE TRADE ACT OR PRACTICE; TO BRING FORWARD SECTIONS 81-1-119, 81-12-211 AND 81-14-201, MISSISSIPPI CODE OF 1972, FOR THE PURPOSE OF POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) Title. This act shall be known and may be cited as the "Mississippi Guaranteeing Fair Banking Act".
(2) Definitions. As used in this section, the following terms have the meanings as defined in this subsection, unless the context clearly indicates otherwise:
(a) "Adverse action" means a decision by a financial institution to directly or indirectly decline to provide full and equal enjoyment in the provision of covered financial services, including, but not limited to, by refusing to provide, terminating or restricting covered financial services.
(b) "Covered financial service" means:
(i) Depository accounts, including, but not limited to, checking accounts, savings accounts or NOW accounts;
(ii) Money transmission, including, but not limited to, checking, payment services, ACH or credit card networks;
(iii) Credit, including, but not limited to, personal loans, mortgages, business loans or credit cards; but
The term "covered financial service" does not include the provision of insurance or the underwriting of or an investment in a security as defined by federal law.
(c) "Discriminate in the provision of covered financial services" means to take an adverse action against a customer on the basis of any of the following criteria:
(i) Any person's exercise of religion, including all aspects of religious observance, practice, belief and affiliation, that is protected by the First Amendment to the United States Constitution, Section 18 of the Mississippi Constitution, or any federal or state law, including the Religious Freedom Restoration Act, 42 USC Section 2000bb et seq., and the Mississippi Religious Freedom Restoration Act, Section 11-61-1 et seq.;
(ii) Any person's speech, expression, opinions, expressive activity or association, including the lawful preservation of privacy regarding those activities, such as declining to disclose contributions or political activity beyond what is required by applicable state and federal law, that is protected by the First Amendment to the United States Constitution, Section 13 of the Mississippi Constitution, or federal or state law, provided that this subparagraph (ii) does not include speech that the United States Supreme Court has expressly held is unprotected, such as obscenity, fraud, incitement, true threats, fighting words, defamation or speech integral to conduct that constitutes a civil or criminal offense under applicable federal or state law;
(iii) Any person's participation in economic activity that is lawful under federal or state law;
(iv) Animus towards a person based on the factors in subparagraphs (i) through (iii); or
(v) A desire to, directly or indirectly, obtain a gain from or avoid a loss imposed on the covered financial institution by any person for the purpose of encouraging the covered financial institution to take an adverse action based on any of the factors in subparagraphs (i) through (iii).
(d) "Financial institution" means, notwithstanding Section 81-5-64(1)(a):
(i) A bank that has total assets over Ten Billion Dollars ($10,000,000,000.00); or
(ii) A payment processor, credit card company, credit card network, payment network, payment service provider or payment gateway that has processed more than Ten Billion Dollars ($10,000,000,000.00) in transactions in the last calendar year. A financial institution includes any parent company, holding company, affiliate or subsidiary company, even if that company is also a financial institution.
(e) "Person" means any individual, partnership, association, joint stock company, trust, corporation, nonprofit organization or other business or legal entity.
(3) Transparency in banking. (a) If a financial institution takes an adverse action against a person, that person may request a statement of specific reasons for the adverse action. Such person shall make a request within ninety (90) days after receiving notice of the adverse action.
(b) The person may request an adverse action statement under this subsection (3) from a customer service representative or designated account representative for the financial institution by phone, U.S. mail or electronic mail.
(c) Unless otherwise prohibited by federal law, the financial institution shall transmit the adverse action statement via U.S. mail and electronic mail, if the recipient's electronic mailing address is known to the financial institution, within thirty (30) days of receiving a request.
(d) The adverse action statement must be specific and include a description of the principal reason or reasons for the adverse action. A statement that the adverse action was based on the institution's internal standards or policies or that the person failed to achieve a qualifying score on the institution's credit scoring system is insufficient. If any criteria listed in subsection (2)(c) of this section factored into the institution's decision to take an adverse action, such criteria must be described in the statement.
(e) If the financial institution provides an adverse action statement to the customer consistent with its obligations under the Equal Credit Opportunity Act (ECOA), 15 USC Section 1691 et seq., and implementing regulations, that statement shall be considered to satisfy the requirements of this subsection (3), provided that if any criteria listed in subsection (2)(c) of this section factored into the institution's decision to take an adverse action, such criteria must be described in the statement, a supplement to the statement, or a separate statement that is provided to the customer contemporaneously with the adverse action statement.
(4) Prohibitions on discriminatory actions. A financial institution shall not:
(a) Discriminate in the provision of financial services to a person;
(b) Agree, conspire or coordinate, directly or indirectly, including through any intermediary or third party, with another person, or group of persons, to engage in activity prohibited under subsection (4)(a) of this section; or
(c) Fail to provide or provide false or intentionally misleading information in the report required in subsection (3) of this section.
(5) Exceptions. It shall not be a violation of this act for a financial institution to take any of the following actions, provided that the action was made in good faith and not motivated by animus or a desire to discriminate in the provision of covered financial services against a person:
(a) A change in the terms of an account expressly agreed to by a customer;
(b) Any action or forbearance relating to an account taken in connection with inactivity, default or delinquency as to that account;
(c) A refusal to provide services because applicable federal or Mississippi law prohibits the covered financial institution from providing the service requested;
(d) A refusal to provide a service because the covered financial institution does not offer the type of service requested; or
(e) A decision based solely on any of the following valid business factors, if made in an impartial manner and in good faith:
(i) Maximizing profitability or shareholder value, provided that this determination is not based on a desire to obtain a benefit or avoid a harm imposed by another person because the covered financial institution served a customer;
(ii) Complying with legitimate legal or regulatory requirements; or
(iii) Maintaining the safety and soundness of a covered financial institution or its employees.
(6) Unfair or deceptive acts. Any violation of this section shall be an unfair or deceptive trade act or practice declared unlawful by Section 75-24-5 and, in addition to the rights and remedies provided in this act, the Attorney General or other competent official may pursue any other remedies provided for under Section 75-24-1 et seq.
(7) Legal remedies for violations. Any person harmed by a violation of this act may initiate a civil action for any of the following:
(a) Actual damages, or Ten Thousand Dollars ($10,000.00), whichever is greater, for each violation. If the trier of fact finds that the violation was willful, the damages may be increased to an amount of up to three (3) times the actual damages sustained, or Thirty Thousand Dollars ($30,000.00), whichever is greater. A court shall award a prevailing plaintiff reasonable attorney's fees and court costs;
(b) Preventive relief, including an application for a permanent or temporary injunction, restraining order or other order as is necessary to enforce the requirements of this act, and
(c) Reasonable attorney's fees and court costs.
(8) Bad faith claims. If a financial institution can show by clear and convincing evidence that the plaintiff filed a civil action pursuant to subsection (7) of this section in bad faith, it shall be entitled to reasonable attorney's fees and court costs from the plaintiff.
(9) Rules of construction. This act shall be construed in favor of the broad protection of the conduct, opinions and beliefs protected by the First Amendment to the United States Constitution, applicable federal laws, the Constitution of the State of Mississippi and state law.
SECTION 2. Section 75-24-5, Mississippi Code of 1972, is amended as follows:
75-24-5. (1) Unfair methods of competition affecting commerce and unfair or deceptive trade practices in or affecting commerce are prohibited. Action may be brought under Section 75-24-5(1) only under the provisions of Section 75-24-9.
(2) Without limiting the scope of subsection (1) of this section, the following unfair methods of competition and unfair or deceptive trade practices or acts in the conduct of any trade or commerce are hereby prohibited:
(a) Passing off goods or services as those of another;
(b) Misrepresentation of the source, sponsorship, approval, or certification of goods or services;
(c) Misrepresentation of affiliation, connection, or association with, or certification by another;
(d) Misrepresentation of designations of geographic origin in connection with goods or services;
(e) Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation, or connection that he does not have;
(f) Representing that goods are original or new if they are reconditioned, reclaimed, used, or secondhand;
(g) Representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;
(h) Disparaging the goods, services, or business of another by false or misleading representation of fact;
(i) Advertising goods or services with intent not to sell them as advertised;
(j) Advertising goods or services with intent not to supply reasonably expectable public demand, unless the advertisement discloses a limitation of quantity;
(k) Misrepresentations of fact concerning the reasons for, existence of, or amounts of price reductions;
(l) Advertising by or on behalf of any licensed or regulated health care professional which does not specifically describe the license or qualifications of the licensed or regulated health care professional;
(m) Charging an increased premium for reinstating a motor vehicle insurance policy that was cancelled or suspended by the insured solely for the reason that he was transferred out of this state while serving in the United States Armed Forces or on active duty in the National Guard or United States Armed Forces Reserve. It is also an unfair practice for an insurer to charge an increased premium for a new motor vehicle insurance policy if the applicant for coverage or his covered dependents were previously insured with a different insurer and canceled that policy solely for the reason that he was transferred out of this state while serving in the United States Armed Forces or on active duty in the National Guard or United States Armed Forces Reserve. For purposes of determining premiums, an insurer shall consider such persons as having maintained continuous coverage. The provisions of this paragraph (m) shall apply only to such instances when the insured does not drive the vehicle during the period of cancellation or suspension of his policy;
(n) Violating the provisions of Section 75-24-8;
(o) Violating the provisions of Section 73-3-38;
(p) Violating any of the provisions of Title 41, Chapter 149, Mississippi Code of 1972; and
(q) Violating any of the provisions of Title 45, Chapter 38, Mississippi Code of 1972.
(r) Violating any of the provisions of Title 41, Chapter 151, Mississippi Code of 1972.
(s) Violating any of the provisions of Title 81, Chapter 31, Mississippi Code of 1972.
SECTION 3. Section 81-1-119, Mississippi Code of 1972, is brought forward as follows:
81-1-119. (1) If any person or state bank is engaging in, or has engaged in, or is about to engage in, any unsafe or unsound practice, or unfair and discriminatory practice, in conducting the bank's business, or violation of any other law, rule, regulation, order or condition imposed in writing by the commissioner, the commissioner may issue a notice of charges to such person or institution. A notice of charges shall specify the acts alleged to sustain a cease and desist order, and state the time and place at which a hearing shall be held. A hearing before the commissioner on the charges shall be held no earlier than seven (7) days, and no later than fifteen (15) days, after issuance of the notice. The charged institution is entitled to a further extension of seven (7) days upon filing a request with the commissioner. The commissioner may also issue a notice of charges if he has reasonable grounds to believe that any person or bank is about to engage in any unsafe or unsound business practice, or any violation of this chapter, or any other law, rule, regulation or order. If, by a preponderance of the evidence, it is shown that any person or bank is engaged in, or has been engaged in, or is about to engage in, any unsafe or unsound business practice, or unfair and discriminatory practice or any violation of this chapter, or any other law, rule, regulation or order, a cease and desist order shall be issued which shall be permanently binding upon the person or institution until terminated by the commissioner.
(2) If any person or state bank is engaging in, has engaged in, or is about to engage in any unsafe or unsound practice, or unfair and discriminatory practice, in conducting the bank's business, or any violation of any law, rules, regulation, order or condition imposed in writing by the commissioner, and the commissioner has determined that immediate corrective action is required, the commissioner may issue a temporary cease and desist order without prior notice. A temporary cease and desist order shall be effective immediately upon issuance for a period of fifteen (15) days, and may be extended once for a period of fifteen (15) days. Such an order shall state its duration on its face and the words "Temporary Cease and Desist Order." A hearing before the commissioner shall be held within the time that the order remains effective, at which time a temporary order may be dissolved or made permanent.
SECTION 4. Section 81-12-211, Mississippi Code of 1972, is brought forward as follows:
81-12-211. (1) If any person or association is engaging in, or has engaged in, or is about to engage in, any unsafe or unsound practice, or unfair and discriminatory practice, in conducting the association�s business, or violation of any other law, rule, regulation, order or condition imposed in writing by the commissioner, the commissioner may issue a notice of charges to such person or institution. A notice of charges shall specify the acts alleged to sustain a cease and desist order, and state the time and place at which a hearing shall be held. A hearing before the commissioner on the charges shall be held no earlier than seven (7) days, and no later than fifteen (15) days, after issuance of the notice. The charged institution is entitled to a further extension of seven (7) days upon filing a request with the commissioner. The commissioner may also issue a notice of charges if he has reasonable grounds to believe that any person or association is about to engage in any unsafe or unsound business practice, or any violation of this chapter, or any other law, rule, regulation or order. If, by a preponderance of the evidence, it is shown that any person or association is engaged in, or has been engaged in, or is about to engage in, any unsafe or unsound business practice, or unfair and discriminatory practice or any violation of this chapter, or any other law, rule, regulation or order, a cease and desist order shall be issued which shall be permanently binding upon the person or institution until terminated by the commissioner.
(2) If any person or association is engaging in, has engaged in, or is about to engage in any unsafe or unsound practice, or unfair and discriminatory practice, in conducting the association's business, or any violation of any law, rules, regulation, order or condition imposed in writing by the commissioner, and the commissioner has determined that immediate corrective action is required, the commissioner may issue a temporary cease and desist order without prior notice. A temporary cease and desist order shall be effective immediately upon issuance for a period of fifteen (15) days, and may be extended once for a period of fifteen (15) days. Such an order shall state its duration on its face and the words �Temporary Cease and Desist Order.� A hearing before the commissioner shall be held within the time that the order remains effective, at which time a temporary order may be dissolved or made permanent.
SECTION 5. Section 81-14-201, Mississippi Code of 1972, is brought forward as follows:
81-14-201. (1) If any person or savings bank is engaging in, or has engaged in, or is about to engage in, any unsafe or unsound practice, or unfair and discriminatory practice, in conducting the savings bank's business, or violation of any other law, rule, regulation, order or condition imposed in writing by the commissioner, the commissioner may issue a notice of charges to such person or institution. A notice of charges shall specify the acts alleged to sustain a cease and desist order, and state the time and place at which a hearing shall be held. A hearing before the commissioner on the charges shall be held no earlier than seven (7) days, and no later than fifteen (15) days, after issuance of the notice. The charged institution is entitled to a further extension of seven (7) days upon filing a request with the commissioner. The commissioner may also issue a notice of charges if he has reasonable grounds to believe that any person or savings bank is about to engage in any unsafe or unsound business practice, or any violation of this chapter, or any other law, rule, regulation or order. If, by a preponderance of the evidence, it is shown that any person or savings bank is engaged in, or has been engaged in, or is about to engage in, any unsafe or unsound business practice, or unfair and discriminatory practice or any violation of this chapter, or any other law, rule, regulation or order, a cease and desist order shall be issued which shall be permanently binding upon the person or institution until terminated by the commissioner.
(2) If any person or state savings bank is engaging in, has engaged in, or is about to engage in any unsafe or unsound practice, or unfair and discriminatory practice, in conducting the savings bank's business, or any violation of the act or of any other law, rules, regulation, order or condition imposed in writing by the commissioner, and the commissioner has determined that immediate corrective action is required, the commissioner may issue a temporary cease and desist order without prior notice. A temporary cease and desist order shall be effective immediately upon issuance for a period of fifteen (15) days, and may be extended once for a period of fifteen (15) days. Such an order shall state its duration on its face and the words "Temporary Cease and Desist Order." A hearing before the commissioner shall be held within the time that the order remains effective, at which time a temporary order may be dissolved or made permanent.
SECTION 6. This act shall take effect and be in force from and after July 1, 2026.
