Bill Text: MS SB2139 | 2026 | Regular Session | Introduced
Bill Title: Mississippi Guaranteeing Fair Banking Act; enact.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2026-02-03 - Died In Committee [SB2139 Detail]
Download: Mississippi-2026-SB2139-Introduced.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Business and Financial Institutions
By: Senator(s) Fillingane
Senate Bill 2139
AN ACT TO CREATE NEW SECTIONS 81-31-1 THROUGH 81-31-17, MISSISSIPPI CODE OF 1972, TO ENACT THE MISSISSIPPI GUARANTEEING FAIR BANKING ACT; TO PROVIDE THAT A PERSON AGAINST WHOM A FINANCIAL INSTITUTION TAKES AN ADVERSE ACTION MAY REQUEST A STATEMENT OF SPECIFIC REASONS FOR THE ADVERSE ACTION WITHIN 90 DAYS AFTER RECEIVING NOTICE OF THE ACTION; TO REQUIRE A FINANCIAL INSTITUTION TO TRANSMIT THE STATEMENT WITHIN 30 DAYS AFTER RECEIVING THE REQUEST; TO PROHIBIT A FINANCIAL INSTITUTION FROM DISCRIMINATING IN THE PROVISION OF FINANCIAL SERVICES TO A PERSON AND FROM FAILING TO PROVIDE OR PROVIDING FALSE OR INTENTIONALLY MISLEADING INFORMATION IN THE STATEMENT OF SPECIFIC REASONS FOR THE ADVERSE ACTION; TO EXEMPT CERTAIN ACTIONS TAKEN BY A FINANCIAL INSTITUTION, 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; TO PROVIDE THAT ANY VIOLATION OF THE MISSISSIPPI GUARANTEEING FAIR BANKING ACT SHALL CONSTITUTE AN UNFAIR OR DECEPTIVE ACT OR PRACTICE PROHIBITED BY SECTION 75-24-1, ET SEQ.; TO SET FORTH LEGAL REMEDIES FOR VIOLATIONS; TO ENTITLE A FINANCIAL INSTITUTION, UPON A SHOWING OF CLEAR AND CONVINCING EVIDENCE, TO REASONABLE ATTORNEY'S FEES AND COURT COSTS FROM A PLAINTIFF WHO FILES A CIVIL ACTION UNDER THE MISSISSIPPI GUARANTEEING FAIR BANKING ACT IN BAD FAITH; TO SET FORTH RULES OF CONSTRUCTION; TO DEFINE CERTAIN TERMS AND PHRASES; TO AMEND SECTION 75-24-5, MISSISSIPPI CODE OF 1972, TO CONFORM; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. The following shall be codified as Section 81-31-1, Mississippi Code of 1972:
81-31-1. This chapter shall be known and may be cited as the "Mississippi Guaranteeing Fair Banking Act."
SECTION 2. The following shall be codified as Section 81-31-3, Mississippi Code of 1972:
81-31-3. For purposes of this chapter, the following terms and phrases shall have the meanings ascribed herein:
(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 and includes refusing to provide, terminating or restricting covered financial services.
(b) "Covered financial service" means the following:
(i) Depository accounts, including, but not limited to, checking accounts, savings accounts and negotiable order of withdrawal (NOW) accounts;
(ii) Money transmission, including, but not limited to, checking, payment services, automated clearing house (ACH) and credit card networks; and
(iii) Credit, including, but not limited to, personal loans, mortgages, business loans and credit cards.
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 taking an adverse action against a customer on the basis of one (1) of the following criteria:
(i) Any person's exercise of religion that is protected by the First Amendment to the United States Constitution, Section 18 of the Mississippi Constitution of 1890 or any federal or state law, including the Mississippi Religious Freedom Restoration Act, Section 11-61-1, et seq., including all aspects of religious observance and practice, as well as belief and affiliation;
(ii) Any person's speech, expression, opinion, expressive activity or association that is protected by the First Amendment to the United States Constitution, Section 13 of the Mississippi Constitution of 1890 or federal or state law, including the lawful preservation of privacy regarding those activities, such as declining to disclose contributions or political activity beyond what is required by applicable federal and state law. This subparagraph (ii) shall 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 the law of the United States or this state;
(iv) Animus toward a person based on the criteria set forth in subparagraphs (i), (ii) or (iii) of this paragraph (c); and
(v) A desire to, directly or indirectly, obtain a gain from or avoid a loss imposed on the financial institution that performs a covered financial service by any person for the purpose of encouraging the financial institution that performs a covered financial service to take an adverse action based on any of the criteria set forth in subparagraphs (i), (ii) or (iii) of this paragraph (c).
(d) "Financial institution" means, notwithstanding Section 81-5-64(1)(a):
(i) A bank that has total assets exceeding 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 company 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.
SECTION 3. The following shall be codified as Section 81-31-5, Mississippi Code of 1972:
81-31-5. (1) (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 within ninety (90) days after receiving notice of the adverse action.
(b) The person against whom adverse action is taken may request the statement of specific reasons for the adverse action from a customer service representative or designated account representative by phone, United States mail or email.
(2) (a) Unless otherwise prohibited by federal law, the financial institution shall transmit the statement of specific reasons for the adverse action via United States mail and also via email, if known to the financial institution, within thirty (30) days after receiving the request.
(b) The statement must be specific and include a description of the principal reason and any additional reason(s) for the adverse action. A brief statement that the adverse action was based on the financial institution's internal standards or policies, or that the person failed to achieve a qualifying score on the institution's credit scoring system, shall not be sufficient. If any criteria listed in Section 81-31-3(c) factored into the institution's decision to take an adverse action, the criteria must be described in the statement.
(3) If the financial institution provides an adverse action statement to the customer consistent with its obligations under the Equal Credit Opportunity Act (15 USC � 1691, et seq.) and implementing regulations, such statement shall be considered to satisfy the requirements of subsection (2) of this section, provided that if any criteria listed in Section 81-31-3(c) factored into the institution's decision to take an adverse action, it must be described in the statement, a supplement to the statement, or a separate statement that is provided to the customer contemporaneously with the Equal Credit Opportunity Act adverse action statement.
SECTION 4. The following shall be codified as Section 81-31-7, Mississippi Code of 1972:
81-31-7. 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 by paragraph (a) of this section; or
(c) Fail to provide or provide false or intentionally misleading information in the statement of specific reasons for the adverse action required under Section 81-31-5.
SECTION 5. The following shall be codified as Section 81-31-9, Mississippi Code of 1972:
81-31-9. It shall not be a violation of this chapter 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 law or Mississippi law prohibits the financial institution from providing the covered financial service requested;
(d) A refusal to provide a service because the financial institution does not offer the type of covered financial 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, unless the decision was based on a desire to obtain a benefit or avoid a harm imposed by another person because the financial institution provided a covered financial service to a customer;
(ii) Complying with legitimate legal or regulatory requirements; or
(iii) Maintaining the safety and soundness of a financial institution that provides covered financial services or its employees.
SECTION 6. The following shall be codified as Section 81-31-11, Mississippi Code of 1972:
81-31-11. Any violation of this chapter shall constitute an unfair or deceptive act or practice prohibited by Section 75-24-1, et seq. and, in addition to the rights and remedies provided in this chapter, the State Attorney General or other competent official may pursue any other remedies provided for in Section 75-24-1, et seq.
SECTION 7. The following shall be codified as Section 81-31-13, Mississippi Code of 1972:
81-31-13. A person harmed by a violation of this chapter may initiate a civil action for any of the following:
(a) Actual damages, or Ten Thousand Dollars ($10,000.00.00), whichever is greater, for each violation. If the trier of fact finds that the violation was willful, it may increase the damages to an amount of up to three (3) times the actual damages sustained, or Thirty Thousand Dollars ($30,000.00), whichever is greater;
(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 chapter; and
(c) Reasonable attorney's fees and court costs.
SECTION 8. The following shall be codified as Section 81-31-15, Mississippi Code of 1972:
81-31-15. If a financial institution can show by clear and convincing evidence that the plaintiff filed a civil action pursuant to Section 81-31-13 in bad faith, it shall be entitled to reasonable attorney's fees and court costs from the plaintiff.
SECTION 9. The following shall be codified as Section 81-31-17, Mississippi Code of 1972:
81-31-17. This chapter 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 law, the Constitution of the State of Mississippi and state law.
SECTION 10. 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; * * *
(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 * * *; and
(s) Violating any of the provisions of Title 81, Chapter 31, Mississippi Code of 1972.
SECTION 11. Sections 1 through 9 of this act shall be codified as a new Chapter 31 in Title 81, Mississippi Code of 1972.
SECTION 12. This act shall take effect and be in force from and after July 1, 2026.
