I
103D CONGRESS
1ST SESSION
H. R. 2350
To require depository institutions to offer basic financial services accounts,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 9, 1993
Mr. TORRES introduced the following bill; which was referred to the
Committee on Banking, Finance and Urban Affairs
A BILL
To require depository institutions to offer basic financial
services accounts, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Financial Services Ac-
cess Act of 1993’’.
SEC. 2. BASIC FINANCIAL SERVICES ACCOUNTS REQUIRED.
(a) IN GENERAL.—Each depository institution shall
offer a basic financial services account which, at the elec-
tion of the account holder, may be used to obtain—
(1) basic transaction account services; or
(2) government check cashing account services.
(b) REQUIREMENTS FOR BASIC FINANCIAL SERVICES
ACCOUNTS.—A basic financial services account shall meet
the requirements of this Act. A basic financial services ac-
count does not meet the requirements of this Act if it—
(1) requires any other relationship with the de-
pository institution, except as provided in section 7;
(2) allows a depository institution to discrimi-
nate against low-income individuals on the basis of
race, color, national origin, sex, age, marital status,
receipt of public assistance, source of income, exer-
cise of any rights under consumer protection stat-
utes, employment status, or access to credit in order
to use such basic financial services account; or
(3) requires the account holder exclusively to
use direct deposit services, automated teller ma-
chines, or other nonteller services for such basic fi-
nancial services account.
(c) EXEMPTION FOR CERTAIN INDIVIDUALS.—A de-
pository institution is not required to provide a basic fi-
nancial services account to any individual who—
(1) has a deposit account relationship at the de-
pository institution or any other depository institu-
tion; or
(2) has a government check cashing relation-
ship at the depository institution or any other depos-
itory institution.
(d) EXEMPTION FROM BASIC TRANSACTION SERV-
ICES REQUIREMENTS.—Any depository institution that on
the effective date of this Act offers basic transaction serv-
ices that are, from an account holder’s perspective, com-
parable to or more favorable than those services prescribed
in subsection (a)(1), shall be exempt from section 4 for
as long as it continues to offer comparable or more favor-
able basic transaction services.
(e) EXEMPTION FROM CHECK CASHING SERVICES
REQUIREMENTS.—Any depository institution that on the
effective date of this Act offers government check cashing
services that, from an account holder’s perspective, are
comparable to or more favorable than those services pre-
scribed in section 5, shall be exempt from subsection
(a)(2) for as long as it continues to offer comparable or
more favorable government check cashing services.
SEC. 3. ACCOUNT APPLICATIONS.
(a) IN GENERAL.—The Board shall develop a model
application form for the use of depository institutions in
offering a basic financial services account.
the procedures available to the applicant for fil-
ing a complaint, as provided in section 10; and
(B) maintain records and files with regard
to each denial made pursuant to this subsection
for a minimum period of 2 years from the date
of denial.
(3) FORM.—The Board shall develop a model
form for the use of depository institutions in notify-
ing applicants of a denial of service pursuant to this
subsection.
(g) INITIAL WAITING PERIOD.—The depository insti-
tution may impose a waiting period of not more than 7
days from the date of application before providing an ap-
plicant with a basic transaction services account or a gov-
ernment check cashing services account.
(h) IDENTIFICATION CARD.—If a depository institu-
tion issues an identification card to approved applicants,
it may assess a reasonable, cost-based charge for replace-
ment of a lost or stolen card.
SEC. 4. BASIC TRANSACTION SERVICES ACCOUNT RE-
QUIREMENTS.
(a) IN GENERAL.—An account is a basic transaction
services account for the purpose of section 2 if it is a
transaction account that—
(1) is available to account holders who maintain
an average balance of not more than $750 during
each monthly period;
(2) does not require a minimum initial deposit
of more than $25 or minimum balance requirement
of more than $1;
(3) does not provide for the imposition of fees
other than—
(A) a monthly maintenance fee or service
charge that does not exceed the real, direct, and
demonstrable costs of providing the account (in-
cluding fraud losses and deposit insurance pre-
miums), as certified by the depository institu-
tion, plus a modest profit not to exceed 10 per-
cent of such costs;
(B) a reasonable, cost-based fee for check
printing;
(C) a reasonable, cost-based fee for proc-
essing checks returned for lack of sufficient
funds; and
(D) a reasonable, cost-based fee for trans-
actions in excess of the minimum number of al-
lowable transactions described in paragraph (5);
(4) permits checks, share drafts, electronic, or
other debit instruments to be drawn on the account
for purposes of making payments or other transfers
to third parties;
(5) permits at least 10 withdrawals per month,
including withdrawals described in paragraph (4),
whether by check, share draft, in person, proprietary
automatic teller machines, or other means;
(6) provides the account holder with—
(A) a detailed periodic statement listing all
transactions for the period involved; or
(B) a passbook in which the depository in-
stitution enters all transactions for such ac-
count;
(7) does not require the depository institution
to pay interest on deposited funds;
(8) at the election of the account holder, allows
regularly recurring payments to the account holder
to be made by a pay or directly to the depository in-
stitution for direct deposit into the account of the
account holder, if the depository institution offers di-
rect deposit services to account holders;
(9) allows the depository institution—
(A) to market direct deposit services; and
(B) to offer cost-based discounts to ac-
count holders who elect to rely wholly or par-
tially on direct deposit or automatic teller ma-
chines in conjunction with the account; and
(10) is subject to closure upon notice to the ac-
count holder due to—
(A) overdrafts, returned checks, or rejected
electronic debits with respect to an account on
3 distinct occasions within any 6-month period;
(B) fraudulent activity involving the ac-
count of such account holder; or
(C) failure by the account holder to abide
by the terms of the account, as provided in
paragraphs (1) through (3) of subsection (a).
(b) COST ANALYSIS.—For the purpose of subsection
(a)(3)(A), the depository institution shall base the month-
ly maintenance fee or service charge either on its own
study of costs (actual time and actual net processing
costs) or on functional cost analysis (actual time and ac-
tual net processing cost) studies of various types of deposi-
tory institutions performed by the Board.
SEC. 5. GOVERNMENT CHECK CASHING SERVICES AC-
COUNT REQUIREMENTS.
(a) IN GENERAL.—An account is a government check
cashing services account for the purpose of section 2 if
it—
(1) Notwithstanding the Expedited Funds
Availability Act (12 U.S.C. 4001 et seq.), permits
the account holder immediately to cash government
checks in amounts of as much as $1,500, if—
(A) the account holder presents the check
and is the person to whom the check has been
issued; and
(B) the individual has applied to the de-
pository institution for government check cash-
ing services under section 3;
(2) does not require the account holder to pay
a monthly service charge or maintenance fee for
check cashing services;
(3) does not require the account holder to pay
a fee for the establishment of a check cashing ac-
count;
(4) does not have check cashing fees that ex-
ceed the real, direct, and demonstrable costs of pro-
viding check cashing account services (including
fraud losses), as certified by the depository institu-
tion, plus a modest profit not to exceed 10 percent
of such costs;
(5) allows the account holder to designate at
least 3 offices of the depository institution at which
to cash government checks, if such offices—
(A) take deposits;
(B) open new accounts; and
(C) are staffed by individuals employed by
such depository institution;
unless the depository institution has fewer than 3 of-
fices which meet the requirements of subparagraphs
(A), (B), and (C); and
(6) permits the depository institution to require,
prior to cashing any government check, the account
holder to present—
(A) any identification described in section
3(c) or section 3(h); and
(B) the account holder’s government check
cashing services account number.
(b) COST ANALYSIS.—For the purpose of subsection
(a)(4), the depository institution shall base such check
cashing fees either on its own study of costs (actual time
and actual net processing cost) or on functional analysis
(actual time and actual net processing cost) studies of var-
ious types of depository institutions performed by the
Board.
SEC. 6. INFORMATION ON ACCOUNTS.
(a) DISPLAY.—
(1) IN GENERAL.—A depository institution shall
conspicuously display in its lobby and other public
areas of the institution brochures, pamphlets, or
other written information that inform account hold-
ers and potential account holders that basic financial
services accounts are available.
(2) 
INFORMATION.—Such 
brochures, 
pam-
phlets, or other written information shall—
(A) clearly explain the material features
and limitations of basic transaction and govern-
ment check cashing services, including the costs
of utilizing basic transaction account services;
(B) state that further information concern-
ing such services is available from the deposi-
tory institution upon request; and
(C) include information concerning an ac-
count holder’s right to complain regarding non-
compliance with this Act.
(3) AVAILABILITY.—A depository institution
shall provide the information described in paragraph
(2) to any individual upon request.
(b) PUBLIC SERVICE ANNOUNCEMENTS AND MULTI
LANGUAGE NOTICES.—For the purpose of obtaining the
widest possible dissemination of information concerning
basic banking accounts available pursuant to this Act, par-
ticularly with respect to individuals whose ability to read
the English language is limited, the Board—
(1) shall prepare public service announcements
describing the basic banking accounts available pur-
suant to this Act and make such announcements
available free of charge to broadcast or electronic
media;
(2) may prescribe regulations requiring deposi-
tory institutions to include a brief description of the
basic banking accounts available at such institution
in any advertisement by such institution in any
broadcast or electronic medium; and
(3) shall prescribe regulations which require
that, in the case of any branch or office (of a deposi-
tory institution) which is located in an area in which
more than an insignificant number of the residents
have a limited English proficiency, the information
required to be made available under subsection (a)
by such branch or office be written in any language
which is predominant among such residents (in addi-
tion to English).
SEC. 7. SPECIAL RULES FOR CREDIT UNIONS.
(a) BASIC TRANSACTION SERVICES.—Any credit
union which, in the ordinary course of business, offers
share draft accounts to its own members shall provide
basic transaction services pursuant to this Act to any indi-
vidual who is or becomes a member of such credit union
if the individual complies with the requirements of this
Act.
(b) GOVERNMENT CHECK CASHING SERVICES.—Any
credit union which, in the ordinary course of business,
cashes share drafts or government checks for its own
members shall provide government check cashing services
pursuant to this Act to any individual who is or becomes
a member of such credit union if the individual complies
with the requirements of this Act.
SEC. 8. SPECIAL RULES FOR CERTAIN DEPOSITORY INSTI-
TUTIONS.
(a) INSTITUTIONS THAT DO NOT OFFER TRANS-
ACTION ACCOUNTS.—A depository institution, other than
a credit union, which does not, in the ordinary course of
business, offer transaction accounts to the general public,
is not required to provide basic transaction services.
(b) INSTITUTIONS THAT DO NOT CASH CHECKS.—
A depository institution which does not, in the ordinary
course of business, cash checks is not required to provide
government check cashing services.
SEC. 9. PREVENTING FRAUD LOSSES.
(a) IN GENERAL.—The Board may, upon petition by
any individual depository institution, suspend, by regula-
tion or order, any government check cashing services ac-
count requirement under this Act if the Board determines
that the depository institution is experiencing an unac-
ceptable level of losses due to check-related fraud in pro-
viding such account services.
(b) SUSPENSION OF REQUIREMENTS.—The Board
may, by regulation or order, suspend any government
check cashing services account requirement imposed by
this Act for any class of checks if the Board determines
that—
(1) depository institutions are experiencing an
unacceptable level of losses due to check-related
fraud with respect to such class of checks; or
(2) there is reasonable cause to believe that
such class of checks is being used in a scheme to de-
fraud.
(c) REPORT.—Within 10 days of issuing any order
or prescribing any regulation under subsections (a) and
(b) of this section, the Board shall submit a report to the
Committee on Banking, Finance and Urban Affairs of the
House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate, explaining the
reason for the order or regulation and the evidence consid-
ered in making the determination to issue an order or pre-
scribe a regulation.
(d) EXEMPTIONS.—This Act does not apply with re-
spect to any government check presented for cashing to
a depository institution if the depository institution has
reason to believe that—
(1) such check is fraudulent, is being fraudu-
lently presented, or has been altered or forged;
(2) the individual presenting the check is mis-
representing or has misrepresented his or her iden-
tity;
(3) any form of identification that is presented
in connection with cashing such check has been al-
tered or forged; or
(4) the check will not be honored by the check-
issuing governmental authority.
For purposes of this subsection, a reasonable belief re-
quires the existence of facts which would give rise to a
well-grounded belief in the mind of a reasonable person.
SEC. 10. ADMINISTRATIVE ENFORCEMENT.
(a) IN GENERAL.—Compliance with the requirements
imposed under this Act shall be enforced under—
(1) section 8 of the Federal Deposit Insurance
Act—
(A) by the Office of the Comptroller of the
Currency with respect to national banks, and
Federal branches and Federal agencies of for-
eign banks;
(B) by the Board of Governors of the Fed-
eral Reserve System with respect to member
banks of the Federal Reserve System (other
than national banks), and offices, branches, and
agencies of foreign banks located in the United
States (other than Federal branches, Federal
agencies, and insured State branches of foreign
banks);
(C) by the Board of Directors of the Fed-
eral Deposit Insurance Corporation with respect
to banks the deposits of which are insured by
the Federal Deposit Insurance Corporation
(other than members of the Federal Reserve
System) and insured State branches of foreign
banks; and
(D) by the Office of Thrift Supervision
with respect to Federal savings associations and
Federal savings banks; and
(2) section 206 of the Federal Credit Union
Act, by the National Credit Union Administration
Board, with respect to any insured credit union.
The terms used in paragraph (1) that are not defined in
this Act or otherwise defined in section 3(s) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the
meaning given to them in section 1(b) of the International
Banking Act of 1978 (12 U.S.C. 3101).
(b) ADDITIONAL ENFORCEMENT POWERS.—
(1) VIOLATION OF THIS SUBTITLE TREATED AS
VIOLATION OF OTHER ACTS.—For purposes of the
exercise by the appropriate Federal banking agency
of any such agency’s powers under any Act referred
to in subsection (a), a violation of a requirement im-
posed under this Act is deemed to be a violation of
a requirement imposed under that Act.
(2) ENFORCEMENT AUTHORITY UNDER OTHER
ACTS.—In addition to the appropriate Federal bank-
ing agency’s powers under any provision of law re-
ferred to in subsection (a), each such agency may
exercise, for purposes of enforcing this Act, any
other authority conferred on such agency by any
other law.
(c) COMPLAINTS BY INDIVIDUALS.—
(1) IN GENERAL.—The Board shall develop a
complaint form for individuals to use to report pos-
sible violations of this Act. Each appropriate Federal
banking agency that receives a complaint shall con-
duct an investigation as such agency deems nec-
essary. If such complaint is verified by an investiga-
tion, the agency shall carry out proper enforcement