H.R.1172 - Consumer Services Bank Act of 1987100th Congress (1987-1988)
|Sponsor:||Rep. LaFalce, John J. [D-NY-32] (Introduced 02/19/1987)|
|Committees:||House - Banking, Finance, and Urban Affrs|
|Latest Action:||House - 02/19/1987 Referred to Subcommittee on Financial Institutions Supervision, Regulation and Insurance. (All Actions)|
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Summary: H.R.1172 — 100th Congress (1987-1988)All Information (Except Text)
Introduced in House (02/19/1987)
Consumer Services Bank Act of 1987 - Allows any national banking association (or any State bank seeking to convert to a national banking association) to become a consumer services bank by submitting to the Comptroller of the Currency a consumer services commitment in compliance with requirements of this Act.
Requires a consumer services bank to: (1) not make commercial loans; (2) offer low cost transaction accounts designed for low income consumers; (3) make available in each State in which a bank office is located an aggregate amount of loans equal to 65 percent of the deposits received from State residents; (4) disclose that certain actions are taken on behalf of an affiliate and that the customer is not obligated to purchase any product or use any service of the bank or affiliate in order to obtain any other financial service; (5) comply with specified disclosure requirements for interest payable on deposits; (6) cash Government checks endorsed only by the payee for no cost to low cost transaction account holders and for a reasonable fee for other account holders; (7) maintain a total capital-to-assets ratio of at least nine percent; and (8) maintain investments of at least 65 percent of its total assets during two of every three consecutive years in loans or extensions of credit to natural persons secured by a one to four family residence or for personal, family, or household purposes, loans and extensions of credit for charitable purposes, and loans or extensions of credit to individuals through the use of credit cards or similar means. Provides for: (1) revocation of consumer services bank status if the Comptroller finds, after a hearing, that the bank has violated such requirements; and (2) judicial review of such revocation.
Amends the Bank Holding Company Act of 1956 to exclude a consumer services bank from the definition of a "bank" for purposes of such Act. Requires any bank which is not a "bank" as defined in such Act and which is not a consumer services bank within two years after enactment of this Act to be treated as a "bank" for purposes of such Act.
Sets forth disclosure requirements for consumer services banks with respect to interest rates payable on deposits.