Prevent financial services providers from denying service based on certain grounds.
Impact
If enacted, HB 1207 would require financial institutions in South Dakota to disclose the standards they use for denying services. This includes a mandate that all public institutions must inform individuals of the criteria used for their service denial, ensuring the individuals understand the basis of such decisions. By compelling financial institutions to adhere to these rules, the bill aims to enhance consumer protection and promote equitable access to financial services, potentially reshaping how financial institutions interact with clients.
Summary
House Bill 1207 aims to prevent financial services providers from denying services based on non-financial criteria, including but not limited to environmental, social, and governance measures. The bill stipulates that any denial of service must be justified by documented failures to meet impartial and risk-based financial standards set forth by the financial institution. This move is part of a broader effort to ensure fairness and transparency in the financial services sector, particularly concerning how subjective measures impact access to financial products.
Contention
While proponents argue that the bill addresses important issues of discrimination in the financial sector and promotes consumer rights, there is contention surrounding the implications of enforcing such regulations. Critics may argue that the bill could impose undue burdens on financial institutions, complicating their operations and potentially stifling innovation. Additionally, concerns have been raised about how these requirements might affect the ability of financial institutions to assess risk effectively and make sound business decisions.
Financial institutions; creating the Fair Access to Financial Services Act; preventing financial institutions from denying financial services to individuals for certain criteria. Effective date.
Financial institutions; creating the Fair Access to Financial Services Act; preventing financial institutions from denying financial services to individuals for certain criteria. Effective date.
Relating to accountability of institutions of higher education, including educator preparation programs, and online institution resumes for public institutions of higher education.
Revises calculation of student financial need and provides circumstances for reduction of financial aid at institutions of higher education and proprietary institutions.
Revises calculation of student financial need and provides circumstances for reduction of financial aid at institutions of higher education and proprietary institutions.
Revises calculation of student financial need and provides circumstances for reduction of financial aid at institutions of higher education and proprietary institutions.