Removing Barriers Blog

Firearm Legislation Impacting Credit Unions Being Pursued in the States
Posted February 02, 2016 by CUNA Advocacy

Recently the gun industry began spearheading legislation that would create a private cause of action against any credit union or financial institution that discriminates against a firearm and ammunition business by refusing service (or discontinuing service). The Firearms Industry Nondiscrimination Act (FIND Act) has been introduced in Georgia (S 282), Kansas (S 331) and Missouri (H 2426) so far this session. 

The FIND Act is being pursued in response to the impact of the Obama Administration initiative “Operation Choke Point" on firearms and ammunition businesses.  The goal of the initiative is to discourage financial institutions from offering services to businesses deemed as “high risk” or as a “reputational risk.” The gun industry contends that financial institutions have discriminated against lawful firearm and ammunition businesses due to Operation Choke Point and that discrimination has led to higher business costs. 

Georgia Credit Union Affiliates has been engaged on this issue and continues to educate legislators that this bill places the burden on credit unions and other financial institutions to prove that they were not discriminating firearm and ammunition businesses, even if the reason for refusal to serve due to field of membership or member business lending constraints.