Transparency In Financial Services Act

SB 569, the Transparency in Financial Services Act, requires large banks (with over $100 billion in assets) and major payment processors (handling over $100 billion in annual transactions) to provide customers with specific written reasons when denying, restricting, or terminating financial services like checking accounts, loans, or payment processing. The law prohibits these institutions from taking adverse actions based on a customer’s protected religious practices, speech, political activity, lawful economic behavior, or the institution’s desire to avoid financial loss tied to those factors. Customers can request a detailed explanation within 90 days of an adverse action, and institutions must respond within 30 days with clear reasons - not vague terms like "internal policies" - and must name any prohibited factor if it influenced the decision. The bill also bans financial institutions from conspiring with others to discriminate in providing covered services.