[Congressional Record Volume 167, Number 86 (Tuesday, May 18, 2021)]
[House]
[Pages H2450-H2452]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FINANCIAL INCLUSION IN BANKING ACT OF 2021
Mr. CLEAVER. Madam Speaker, I move to suspend the rules and pass the
bill (H.R. 1711) to amend the Consumer Financial Protection Act of 2010
to direct the Office of Community Affairs to identify causes leading
to, and solutions for, under-banked, un-banked, and underserved
consumers, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 1711
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Financial Inclusion in
Banking Act of 2021''.
SEC. 2. OFFICE OF COMMUNITY AFFAIRS DUTIES WITH RESPECT TO
UNDER-BANKED, UN-BANKED, AND UNDERSERVED
CONSUMERS.
Section 1013(b)(2) of the Consumer Financial Protection Act
of 2010 (12 U.S.C. 5493(b)(2)) is amended--
(1) by striking ``The Director shall establish a unit'' and
inserting the following:
``(A) In general.--The Director shall establish a unit to
be known as the `Office of Community Affairs' ''; and
(2) by adding at the end the following:
``(B) Duties related to under-banked, un-banked, and
underserved consumers.--
``(i) In general.--The Office of Community Affairs shall--
``(I) lead coordination of research to identify any causes
and challenges contributing to the decision of individuals
who, and households that, do not initiate or maintain on-
going and sustainable relationships with depository
institutions, including consulting with trade associations
representing depository institutions, trade associations
representing minority depository institutions, organizations
representing the interests of traditionally underserved
consumers and communities, organizations representing the
interests of consumers (particularly low- and moderate-income
individuals), civil rights groups, community groups, consumer
advocates, and the Consumer Advisory Board about this matter;
``(II) identify subject matter experts within the Bureau to
work on the issues identified under subclause (I);
``(III) lead coordination efforts between other Federal
departments and agencies to better assess the reasons for the
lack of, and help increase the participation of, under-
banked, un-banked, and underserved consumers in the banking
system; and
``(IV) identify and develop strategies to increase
financial education to under-banked, un-banked, and
underserved consumers.
``(ii) Coordination with other bureau offices.--In carrying
out this paragraph, the Office of Community Affairs shall
consult with and coordinate with the research unit
established under subsection (b)(1) and such other offices of
the Bureau as the Director may determine appropriate.
``(iii) Reporting.--
``(I) In general.--The Office of Community Affairs shall
submit a report to Congress, within two years of the date of
enactment of this subparagraph and every 2 years thereafter,
that identifies any factors impeding the ability of, or
limiting the option for, individuals or households to have
access to fair, on-going, and sustainable relationships with
depository institutions to meet their financial needs,
discusses any regulatory, legal, or structural barriers to
enhancing participation of under-banked, un-banked, and
underserved consumers with depository institutions, and
contains recommendations to promote better participation for
all consumers with the banking system.
``(II) Timing of report.--To the extent possible, the
Office shall submit each report required under subclause (I)
during a year in which the Federal Deposit Insurance
Corporation does not issue the report on encouraging use of
depository institutions by the unbanked required under
section 49 of the Federal Deposit Insurance Act.''.
SEC. 3. DISCRETIONARY SURPLUS FUNDS.
(a) In General.--The dollar amount specified under section
7(a)(3)(A) of the Federal Reserve Act (12 U.S.C.
289(a)(3)(A)) is reduced by $10,000,000.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect on September 30, 2031.
SEC. 4. DETERMINATION OF BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
submitted for printing in the Congressional Record by the
Chairman of the House Budget Committee, provided that such
statement has been submitted prior to the vote on passage.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Missouri (Mr. Cleaver) and the gentleman from Arkansas (Mr. Hill) each
will control 20 minutes.
The Chair recognizes the gentleman from Missouri.
{time} 1230
General Leave
Mr. CLEAVER. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on this legislation and insert extraneous materials thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Missouri?
There was no objection.
Mr. CLEAVER. Madam Speaker, I yield myself such time as I may
consume.
Madam Speaker, I thank Representative Scott for his leadership on
this legislation, the Financial Inclusion in Banking Act.
This bill would direct the Consumer Financial Protection Bureau's
Office of Community Affairs to identify causes leading to, and
solutions for, underbanked, unbanked, and underserved consumers.
The office would be required to share its findings in a report to
Congress every 2 years and coordinate with other Federal agencies to
increase financial education. Through these new requirements, this bill
would provide important information about unbanked and underbanked
consumers and ultimately help drive solutions that can decrease the
reliance on predatory financing products, like payday loans.
According to FDIC's latest survey from 2019, more than 7 million
American households, or roughly 5.4 percent, are unbanked. However, the
survey was taken before the pandemic, and the agency noted it would
likely result in an increase in the unbanked rate.
Even some individuals and families that may have a bank account still
end up utilizing other forms of credit, like a pawn shop or payday
loan, which are typically more expensive than bank credit. Nearly 5
percent of all households utilize these products, but again, these are
prepandemic numbers, and we know millions have lost their jobs and may
turn to these other forms of credit.
Moreover, access to traditional banking accounts is one way to
expeditiously deliver government stimulus deposits to individuals and
families that need help quickly.
Access to banking is a racial justice issue, as well. According to
the FDIC's prepandemic data, 13.8 percent of Black households and 12.2
percent of Latinx households are unbanked, compared to just 2.5 percent
of White households.
Everyone deserves access to safe, reliable, and affordable banking
options in order to grow their savings, build credit, and conduct
financial transactions in a secure way. This bill would be an important
step in achieving that goal.
For these reasons, I urge my colleagues to support this bill, and I
reserve the balance of my time.
Mr. HILL. Madam Speaker, I yield myself such time as I may consume.
I thank the gentleman from Georgia (Mr. David Scott) for
introducing this bill, which has been bipartisan for several
Congresses.
According to data from the FDIC's survey of unbanked and underbanked
households, 5.4 percent of U.S. households were unbanked in 2019. This
means no one in the household had a checking or savings account. This
translates, Madam Speaker, into 7.1 million American households that
don't have that simple, straightforward needed access to a checking or
savings account.
While this is the lowest percentage rate since the FDIC began
conducting that survey back in 2009, the number of
[[Page H2451]]
unbanked and underbanked families is still disturbing.
These statistics point to a staggering number of Americans who have
limited or no access to traditional banking services. When I was in
community banking before coming to Congress, there was nothing more
empowering than having connection to and access to that financial
system so that you can save for college, buy a home, acquire that first
car that you have dreamed of, or just conduct your household's
financing.
So, over the years in Congress, I have supported efforts to improve
financial literacy, particularly with my friend, Dr. Foster. As a
banker, I certainly worked with volunteers, helping families understand
the financial system and how they could have banking access. This is a
key issue that both the private sector and the public sector work on,
on a regular basis.
Mr. Scott has suggested that the Consumer Financial Protection
Bureau's Office of Community Affairs continue to engage in these
efforts and examine how to improve this situation.
The Office of Community Affairs also partnered with the CFPB's Office
of Research and the Office of Fair Lending to examine credit deserts,
where we don't even have access to financial services, and better equip
communities with the tools for financial education.
Additionally, the Bureau's Your Money, Your Goals program offers a
variety of materials to help consumers pursue financial empowerment and
resources for organizations aimed at helping financially vulnerable
individuals and families.
This is a key issue and, particularly in my rural State, a bigger
challenge for rural counties, as we have some counties without a single
financial services office.
Despite the progress that has been made, credit invisibility remains
an important issue, especially given the pandemic's impact on American
consumers.
By further directing the CFPB's Office of Community Affairs to focus
its work on the underserved, we are working to ensure those consumers
are not overlooked.
This bill reaffirms our goal in understanding credit invisibility and
identifying better solutions to deliver resources.
All Americans deserve access to basic financial tools that will help
them achieve their financial independence, their pursuit of happiness.
This bill takes an important step in promoting financial inclusion and
providing access to all Americans.
I thank my good friend from Georgia (Mr. David Scott), who is
approaching the microphone, for his work on this bill, and I thank my
friend, Mr. Cleaver, for leading today. I urge my colleagues to support
the Financial Inclusion in Banking Act, and I reserve the balance of my
time.
Mr. CLEAVER. Madam Speaker, I yield 2 minutes to the great gentleman
from Georgia (Mr. David Scott), who is the sponsor of this
legislation.
Mr. DAVID SCOTT of Georgia. Madam Speaker, I thank the gentleman very
much for yielding. I thank my distinguished Republican colleague for
his very fine comments.
Madam Speaker, this is one of our most important bills because it is
happening at a time when so many of our people are facing such ravaging
financial problems and concerns.
Since the passage of Dodd-Frank, which I worked hard on, as many of
you did, and the creation of the Consumer Financial Protection Bureau,
we charged that agency with ensuring that consumers have access to
safe, accessible, and affordable financial products.
Yet, Madam Speaker, do you know that we still have 7.1 million of our
American citizens who are unbanked, relying on pawn shops and payday
lenders to get by? As this past year has laid bare, many families are
just one crisis, one sickness, one broken vehicle, one emergency from
absolute financial devastation.
Without support from regulated, legitimate financial institutions,
these consumers are forced to turn to predatory lenders and unsound
products. They are at the mercy of some of the most unscrupulous
characters we know.
Our bill is a very strong bipartisan bill, which the gentleman from
Arkansas has articulated well.
Madam Speaker, with this bill, we will prioritize the most
underserved and unbanked persons across our great Nation, and we will
be taking the first step toward improving access and affordability in
banking for all of our American people.
I urge my colleagues everywhere to give this a unanimous vote on the
floor later today.
Mr. HILL. Madam Speaker, I yield such time as he may consume to the
gentleman from Ohio (Mr. Davidson), a distinguished member of the House
Financial Services Committee and, as of today, the ranking member on
our Fintech Task Force.
Mr. DAVIDSON. Madam Speaker, financial inclusion is very important,
and I appreciate the bipartisan spirit that this bill was worked
through in our committee.
Frankly, not all things have moved through Congress in a bipartisan
fashion this year. Frankly, it has been a little more rare than normal.
And, frankly, a lot of things in our committee, they haven't been as
bipartisan as we would like. This is something that has moved through
our committee in that fashion.
I appreciate the work my colleagues on both sides of the aisle have
put into this, and I look forward to the work that comes out of it at
the CFPB.
I think, as we approach fintech today, we have the opportunity to
improve financial inclusion for more people, particularly the unbanked
and underbanked. But its characteristics have to be permissionless.
In the same way cash is so vital for the unbanked and underbanked, as
we apply technology, it has to be where people aren't dependent upon a
third party to be able to get permission to move the money that they
have earned between parties. There are people who want to use the power
of central bank digital currencies or other means of control in our
financial system to essentially say: You are not going to bank those
people, are you?
Sadly, our Nation has a history of this. So, I look forward to the
work that comes as a result of this. I encourage all of my colleagues
to support this bill.
Mr. CLEAVER. Madam Speaker, I reserve the balance of my time.
Mr. HILL. Madam Speaker, I appreciate my friend from Ohio (Mr.
Davidson). He spoke to this issue of fintech, which I think is very
important and has the ability to actually open up doors for underbanked
families and unbanked families at a lower cost and a more accessible
way through smart technology. I think that is going to be important.
I thank, again, my friend from Georgia for his work on financial
literacy. As a great Wharton graduate, he knows a lot about financial
literacy, and I am proud that he shares it with all of our citizens and
families across the country.
Madam Speaker, I urge my colleagues to support this bill, and I yield
back the balance of my time.
Mr. CLEAVER. Madam Speaker, I yield myself the balance of my time.
I thank the Hill-Scott combination for this legislation. It also is,
I think, a testament to what we can do if we work together.
The Financial Inclusion in Banking Act, led by Representative Scott,
would provide essential information on unbanked and underserved
customers, as well as identify potential solutions to the reliance on
unconventional financial products, which often lead to predatory
lending and cycles of being trapped in debt.
Communities of color have been excluded from the traditional economic
system due to historical discrimination. All consumers deserve access
to less expensive and more secure mainstream financial products.
The House passed identical legislation unanimously by voice vote in
October 2019, and I urge Republican and Democratic Members to join me
in supporting this bill again.
Madam Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Missouri (Mr. Cleaver) that the House suspend the rules
and pass the bill, H.R. 1711, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
[[Page H2452]]
Mr. DAVIDSON. Madam Speaker, on that I demand the yeas and nays.
The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution
8, the yeas and nays are ordered.
Pursuant to clause 8 of rule XX, further proceedings on this motion
are postponed.
____________________