Mississippi Guaranteeing Fair Banking Act; enact.

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To: Business and Financial
Institutions
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Fillingane

SENATE BILL NO. 2139

AN ACT TO CREATE NEW SECTIONS 81-31-1 THROUGH 81-31-17, 1
MISSISSIPPI CODE OF 1972, TO ENACT THE MISSISSIPPI GUARANTEEING 2
FAIR BANKING ACT; TO PROVIDE THAT A PERSON AGAINST WHOM A 3
FINANCIAL INSTITUTION TAKES AN ADVERSE ACTION MAY REQUEST A 4
STATEMENT OF SPECIFIC REASONS FOR THE ADVERSE ACTION WITHIN 90 5
DAYS AFTER RECEIVING NOTICE OF THE ACTION; TO REQUIRE A FINANCIAL 6
INSTITUTION TO TRANSMIT THE STATEMENT WITHIN 30 DAYS AFTER 7
RECEIVING THE REQUEST; TO PROHIBIT A FINANCIAL INSTITUTION FROM 8
DISCRIMINATING IN THE PROVISION OF FINANCIAL SERVICES TO A PERSON 9
AND FROM FAILING TO PROVIDE OR PROVIDING FALSE OR INTENTIONALLY 10
MISLEADING INFORMATION IN THE STATEMENT OF SPECIFIC REASONS FOR 11
THE ADVERSE ACTION; TO EXEMPT CERTAIN ACTIONS TAKEN BY A FINANCIAL 12
INSTITUTION, PROVIDED THAT THE ACTION WAS MADE IN GOOD FAITH AND 13
NOT MOTIVATED BY ANIMUS OR A DESIRE TO DISCRIMINATE IN THE 14
PROVISION OF COVERED FINANCIAL SERVICES AGAINST A PERSON; TO 15
PROVIDE THAT ANY VIOLATION OF THE MISSISSIPPI GUARANTEEING FAIR 16
BANKING ACT SHALL CONSTITUTE AN UNFAIR OR DECEPTIVE ACT OR 17
PRACTICE PROHIBITED BY SECTION 75-24-1, ET SEQ.; TO SET FORTH 18
LEGAL REMEDIES FOR VIOLATIONS; TO ENTITLE A FINANCIAL INSTITUTION, 19
UPON A SHOWING OF CLEAR AND CONVINCING EVIDENCE, TO REASONABLE 20
ATTORNEY'S FEES AND COURT COSTS FROM A PLAINTIFF WHO FILES A CIVIL 21
ACTION UNDER THE MISSISSIPPI GUARANTEEING FAIR BANKING ACT IN BAD 22
FAITH; TO SET FORTH RULES OF CONSTRUCTION; TO DEFINE CERTAIN TERMS 23
AND PHRASES; TO AMEND SECTION 75-24-5, MISSISSIPPI CODE OF 1972, 24
TO CONFORM; AND FOR RELATED PURPOSES. 25
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 26
SECTION 1. The following shall be codified as Section 27
81-31-1, Mississippi Code of 1972: 28
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81-31-1. This chapter shall be known and may be cited as the 29
"Mississippi Guaranteeing Fair Banking Act." 30
SECTION 2. The following shall be codified as Section 31
81-31-3, Mississippi Code of 1972: 32
81-31-3. For purposes of this chapter, the following terms 33
and phrases shall have the meanings ascribed herein: 34
(a) "Adverse action" means a decision by a financial 35
institution to directly or indirectly decline to provide full and 36
equal enjoyment in the provision of covered financial services and 37
includes refusing to provide, terminating or restricting covered 38
financial services. 39
(b) "Covered financial service" means the following: 40
(i) Depository accounts, including, but not 41
limited to, checking accounts, savings accounts and negotiable 42
order of withdrawal (NOW) accounts; 43
(ii) Money transmission, including, but not 44
limited to, checking, payment services, automated clearing house 45
(ACH) and credit card networks; and 46
(iii) Credit, including, but not limited to, 47
personal loans, mortgages, business loans and credit cards. 48
Covered financial service does not include the provision of 49
insurance or the underwriting of or an investment in a security as 50
defined by federal law. 51
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(c) "Discriminate in the provision of covered financial 52
services" means taking an adverse action against a customer on the 53
basis of one (1) of the following criteria: 54
(i) Any person's exercise of religion that is 55
protected by the First Amendment to the United States 56
Constitution, Section 18 of the Mississippi Constitution of 1890 57
or any federal or state law, including the Mississippi Religious 58
Freedom Restoration Act, Section 11-61-1, et seq., including all 59
aspects of religious observance and practice, as well as belief 60
and affiliation; 61
(ii) Any person's speech, expression, opinion, 62
expressive activity or association that is protected by the First 63
Amendment to the United States Constitution, Section 13 of the 64
Mississippi Constitution of 1890 or federal or state law, 65
including the lawful preservation of privacy regarding those 66
activities, such as declining to disclose contributions or 67
political activity beyond what is required by applicable federal 68
and state law. This subparagraph (ii) shall not include speech 69
that the United States Supreme Court has expressly held is 70
unprotected, such as obscenity, fraud, incitement, true threats, 71
fighting words, defamation or speech integral to conduct that 72
constitutes a civil or criminal offense under applicable federal 73
or state law; 74
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(iii) Any person's participation in economic 75
activity that is lawful under the law of the United States or this 76
state; 77
(iv) Animus toward a person based on the criteria 78
set forth in subparagraphs (i), (ii) or (iii) of this paragraph 79
(c); and 80
(v) A desire to, directly or indirectly, obtain a 81
gain from or avoid a loss imposed on the financial institution 82
that performs a covered financial service by any person for the 83
purpose of encouraging the financial institution that performs a 84
covered financial service to take an adverse action based on any 85
of the criteria set forth in subparagraphs (i), (ii) or (iii) of 86
this paragraph (c). 87
(d) "Financial institution" means, notwithstanding 88
Section 81-5-64(1)(a): 89
(i) A bank that has total assets exceeding Ten 90
Billion Dollars ($10,000,000,000.00); or 91
(ii) A payment processor, credit card company, 92
credit card network, payment network, payment service provider or 93
payment gateway that has processed more than Ten Billion Dollars 94
($10,000,000,000.00) in transactions in the last calendar year. 95
A financial institution includes any parent company, holding 96
company, affiliate company or subsidiary company, even if that 97
company is also a financial institution. 98
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(e) "Person" means any individual, partnership, 99
association, joint stock company, trust, corporation, nonprofit 100
organization or other business or legal entity. 101
SECTION 3. The following shall be codified as Section 102
81-31-5, Mississippi Code of 1972: 103
81-31-5. (1) (a) If a financial institution takes an 104
adverse action against a person, that person may request a 105
statement of specific reasons for the adverse action within ninety 106
(90) days after receiving notice of the adverse action. 107
(b) The person against whom adverse action is taken may 108
request the statement of specific reasons for the adverse action 109
from a customer service representative or designated account 110
representative by phone, United States mail or email. 111
(2) (a) Unless otherwise prohibited by federal law, the 112
financial institution shall transmit the statement of specific 113
reasons for the adverse action via United States mail and also via 114
email, if known to the financial institution, within thirty (30) 115
days after receiving the request. 116
(b) The statement must be specific and include a 117
description of the principal reason and any additional reason(s) 118
for the adverse action. A brief statement that the adverse action 119
was based on the financial institution's internal standards or 120
policies, or that the person failed to achieve a qualifying score 121
on the institution's credit scoring system, shall not be 122
sufficient. If any criteria listed in Section 81-31-3(c) factored 123
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into the institution's decision to take an adverse action, the 124
criteria must be described in the statement. 125
(3) If the financial institution provides an adverse action 126
statement to the customer consistent with its obligations under 127
the Equal Credit Opportunity Act (15 USC § 1691, et seq.) and 128
implementing regulations, such statement shall be considered to 129
satisfy the requirements of subsection (2) of this section, 130
provided that if any criteria listed in Section 81-31-3(c) 131
factored into the institution's decision to take an adverse 132
action, it must be described in the statement, a supplement to the 133
statement, or a separate statement that is provided to the 134
customer contemporaneously with the Equal Credit Opportunity Act 135
adverse action statement. 136
SECTION 4. The following shall be codified as Section 137
81-31-7, Mississippi Code of 1972: 138
81-31-7. A financial institution shall not: 139
(a) Discriminate in the provision of financial services 140
to a person; 141
(b) Agree, conspire or coordinate, directly or 142
indirectly, including through any intermediary or third party, 143
with another person, or group of persons, to engage in activity 144
prohibited by paragraph (a) of this section; or 145
(c) Fail to provide or provide false or intentionally 146
misleading information in the statement of specific reasons for 147
the adverse action required under Section 81-31-5. 148
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SECTION 5. The following shall be codified as Section 149
81-31-9, Mississippi Code of 1972: 150
81-31-9. It shall not be a violation of this chapter for a 151
financial institution to take any of the following actions, 152
provided that the action was made in good faith and not motivated 153
by animus or a desire to discriminate in the provision of covered 154
financial services against a person: 155
(a) A change in the terms of an account expressly 156
agreed to by a customer; 157
(b) Any action or forbearance relating to an account 158
taken in connection with inactivity, default or delinquency as to 159
that account; 160
(c) A refusal to provide services because applicable 161
federal law or Mississippi law prohibits the financial institution 162
from providing the covered financial service requested; 163
(d) A refusal to provide a service because the 164
financial institution does not offer the type of covered financial 165
service requested; or 166
(e) A decision based solely on any of the following 167
valid business factors, if made in an impartial manner and in good 168
faith: 169
(i) Maximizing profitability or shareholder value, 170
unless the decision was based on a desire to obtain a benefit or 171
avoid a harm imposed by another person because the financial 172
institution provided a covered financial service to a customer; 173
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(ii) Complying with legitimate legal or regulatory 174
requirements; or 175
(iii) Maintaining the safety and soundness of a 176
financial institution that provides covered financial services or 177
its employees. 178
SECTION 6. The following shall be codified as Section 179
81-31-11, Mississippi Code of 1972: 180
81-31-11. Any violation of this chapter shall constitute an 181
unfair or deceptive act or practice prohibited by Section 75-24-1, 182
et seq. and, in addition to the rights and remedies provided in 183
this chapter, the State Attorney General or other competent 184
official may pursue any other remedies provided for in Section 185
75-24-1, et seq. 186
SECTION 7. The following shall be codified as Section 187
81-31-13, Mississippi Code of 1972: 188
81-31-13. A person harmed by a violation of this chapter may 189
initiate a civil action for any of the following: 190
(a) Actual damages, or Ten Thousand Dollars ($10,000.00.00), 191
whichever is greater, for each violation. If the trier of fact 192
finds that the violation was willful, it may increase the damages 193
to an amount of up to three (3) times the actual damages 194
sustained, or Thirty Thousand Dollars ($30,000.00), whichever is 195
greater; 196
(b) Preventive relief, including an application for a 197
permanent or temporary injunction, restraining order or other 198
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order as is necessary to enforce the requirements of this chapter; 199
and 200
(c) Reasonable attorney's fees and court costs. 201
SECTION 8. The following shall be codified as Section 202
81-31-15, Mississippi Code of 1972: 203
81-31-15. If a financial institution can show by clear and 204
convincing evidence that the plaintiff filed a civil action 205
pursuant to Section 81-31-13 in bad faith, it shall be entitled to 206
reasonable attorney's fees and court costs from the plaintiff. 207
SECTION 9. The following shall be codified as Section 208
81-31-17, Mississippi Code of 1972: 209
81-31-17. This chapter shall be construed in favor of the 210
broad protection of the conduct, opinions and beliefs protected by 211
the First Amendment to the United States Constitution, applicable 212
federal law, the Constitution of the State of Mississippi and 213
state law. 214
SECTION 10. Section 75-24-5, Mississippi Code of 1972, is 215
amended as follows: 216
75-24-5. (1) Unfair methods of competition affecting 217
commerce and unfair or deceptive trade practices in or affecting 218
commerce are prohibited. Action may be brought under Section 219
75-24-5(1) only under the provisions of Section 75-24-9. 220
(2) Without limiting the scope of subsection (1) of this 221
section, the following unfair methods of competition and unfair or 222
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deceptive trade practices or acts in the conduct of any trade or 223
commerce are hereby prohibited: 224
(a) Passing off goods or services as those of another; 225
(b) Misrepresentation of the source, sponsorship, 226
approval, or certification of goods or services; 227
(c) Misrepresentation of affiliation, connection, or 228
association with, or certification by another; 229
(d) Misrepresentation of designations of geographic 230
origin in connection with goods or services; 231
(e) Representing that goods or services have 232
sponsorship, approval, characteristics, ingredients, uses, 233
benefits, or quantities that they do not have or that a person has 234
a sponsorship, approval, status, affiliation, or connection that 235
he does not have; 236
(f) Representing that goods are original or new if they 237
are reconditioned, reclaimed, used, or secondhand; 238
(g) Representing that goods or services are of a 239
particular standard, quality, or grade, or that goods are of a 240
particular style or model, if they are of another; 241
(h) Disparaging the goods, services, or business of 242
another by false or misleading representation of fact; 243
(i) Advertising goods or services with intent not to 244
sell them as advertised; 245
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(j) Advertising goods or services with intent not to 246
supply reasonably expectable public demand, unless the 247
advertisement discloses a limitation of quantity; 248
(k) Misrepresentations of fact concerning the reasons 249
for, existence of, or amounts of price reductions; 250
(l) Advertising by or on behalf of any licensed or 251
regulated health care professional which does not specifically 252
describe the license or qualifications of the licensed or 253
regulated health care professional; 254
(m) Charging an increased premium for reinstating a 255
motor vehicle insurance policy that was cancelled or suspended by 256
the insured solely for the reason that he was transferred out of 257
this state while serving in the United States Armed Forces or on 258
active duty in the National Guard or United States Armed Forces 259
Reserve. It is also an unfair practice for an insurer to charge 260
an increased premium for a new motor vehicle insurance policy if 261
the applicant for coverage or his covered dependents were 262
previously insured with a different insurer and canceled that 263
policy solely for the reason that he was transferred out of this 264
state while serving in the United States Armed Forces or on active 265
duty in the National Guard or United States Armed Forces Reserve. 266
For purposes of determining premiums, an insurer shall consider 267
such persons as having maintained continuous coverage. The 268
provisions of this paragraph (m) shall apply only to such 269
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ST: Mississippi Guaranteeing Fair Banking Act;
enact.
instances when the insured does not drive the vehicle during the 270
period of cancellation or suspension of his policy; 271
(n) Violating the provisions of Section 75-24-8; 272
(o) Violating the provisions of Section 73-3-38; 273
(p) Violating any of the provisions of Title 41, 274
Chapter 149, Mississippi Code of 1972; * * * 275
(q) Violating any of the provisions of Title 45, 276
Chapter 38, Mississippi Code of 1972 * * *; 277
(r) Violating any of the provisions of Title 41, 278
Chapter 151, Mississippi Code of 1972 * * *; and 279
(s) Violating any of the provisions of Title 81, 280
Chapter 31, Mississippi Code of 1972. 281
SECTION 11. Sections 1 through 9 of this act shall be 282
codified as a new Chapter 31 in Title 81, Mississippi Code of 283
1972. 284
SECTION 12. This act shall take effect and be in force from 285
and after July 1, 2026. 286