Bill > SB228

This bill, known as the Equality in Financial Services Act, aims to prevent financial institutions and insurers from discriminating against customers based on what the bill calls a "social credit score." The legislation defines a social credit score as any rating or analysis that evaluates a person's religious beliefs, speech, associations, firearm ownership, business activities, or compliance with certain social and environmental standards. Under the bill, financial institutions with over $20 billion in assets or transaction volume are prohibited from using such a social credit score to deny, restrict, or terminate financial services. If a financial institution refuses service, it must provide a detailed explanation to the customer upon request. The bill requires financial institutions to make service decisions using impartial, quantitative, risk-based standards and prohibits discrimination based on political opinions, religious beliefs, firearm ownership, or engagement in lawful industries. Insurers must base service decisions on sound underwriting principles. Customers who believe they have been discriminated against can file a complaint with state banking or insurance departments, potentially receiving damages up to $10,000 or actual damages, whichever is greater. The bill also stipulates that financial institutions seeking to provide services to the State of Alabama must certify they will not engage in such discriminatory practices, with potential two-year disqualification from state contracts for violations. The act is set to become effective on October 1, 2025.