Bill > SB2906

This bill establishes new regulations for how Texas-based financial institutions (including banks, savings and loan associations, state savings banks, credit unions, and trust companies) can terminate banking services for their customers. The bill requires financial institutions to provide written notice and a reason before terminating a bank account, line of credit, or other banking instrument, and must allow customers at least 30 days to voluntarily transfer their accounts, with some exceptions. Customers can file an appeal with the Texas Department of Banking within 10 business days of receiving a termination notice, and the department can direct a financial institution to reverse the termination if it determines the termination is not authorized. If a customer successfully proves a violation, they may be entitled to declaratory and injunctive relief, including recovery of costs and attorney's fees. The bill does not apply to accounts that are dormant, have a zero balance, have persistent overdrafts, or if the institution suspects criminal activity. The Finance Commission of Texas is tasked with adopting rules to enforce this chapter, and the law will take effect on September 1, 2025. Importantly, the bill does not override federal protections for financial institutions.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2906