Bill > HB418

This bill, known as the Equality in Financial Services Act, aims to prevent financial institutions and insurers from discriminating against individuals based on what the bill defines as a "social credit score." The legislation broadly defines a social credit score as any rating or analysis that evaluates a person's religious beliefs, speech, firearm ownership, business associations, political views, or other lawful activities. The bill prohibits financial institutions and insurers from using such scores to deny, restrict, or terminate financial services. Under the law, if a financial institution refuses service, they must provide a detailed explanation upon the customer's request within 14 days. The bill allows individuals who believe they have been wrongly denied services to file a complaint with the Alabama State Banking Department or Alabama Department of Insurance, with potential remedies including monetary damages up to $10,000 (or potentially $30,000 for willful violations) and the ability to seek injunctive relief. Financial institutions and insurers providing services to the state must certify compliance with these provisions, and violations can result in being barred from state contracts for two years. The law is set to take effect on October 1, 2025, and is designed to protect individuals' ability to access financial services without facing discrimination based on their personal beliefs, lawful activities, or associations.