The proposed bill, known as the "Fair Banking Act," aims to enhance consumer protections in the banking and financial services sector by prohibiting discrimination against individuals based on specific criteria, including religious beliefs, speech, and lawful economic activities. It establishes a framework for individuals to request a statement of reasons from financial institutions when adverse actions, such as denial or restriction of services, are taken against them. The bill mandates that these statements must be specific and detailed, particularly if the adverse action is influenced by the criteria outlined in the legislation. Additionally, it allows for the Equal Credit Opportunity Act's adverse action statement to fulfill these requirements, ensuring consistency with existing federal regulations.

Furthermore, the bill creates a civil cause of action for individuals harmed by violations of its provisions, allowing them to seek actual damages, preventive relief, and attorney fees. It also provides protections for financial institutions against bad faith claims while emphasizing that actions taken in good faith and not motivated by discriminatory intent are not violations of the act. The bill is designed to be effective starting November 1, 2026, and aims to align state law with constitutional protections for free speech and religious expression.