Consumer Services Bank Act of 1987

Summary

Consumer Services Bank Act of 1987 - Allows any insured bank to become a consumer services bank by submitting to the appropriate Federal agency a consumer services commitment in compliance with the requirements of this Act. Allows organizers of a depository institution desiring to establish an institution which is an insured bank and a consumer services bank to submit a consumer services commitment in connection with the application submitted to the appropriate Federal banking agency. Requires a consumer services bank to: (1) not make commercial loans; (2) offer low cost basic transaction accounts; (3) offer products and services to holders of such basic transaction accounts on the same basis as other consumers; (4) cash, for non-account holders, any U.S. Government checks or State government checks; (5) 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; and (6) 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. Prohibits consumer services banks from engaging in cross marketing arrangements with affiliates or subsidiaries except under specified circumstances. Requires such a bank to provide certain disclosures to customers whenever it is acting on behalf of an affiliate. Requires consumer services banks to maintain a total capital-to-assets ratio of not less than nine percent. Provides for: (1) revocation of consumer services bank status if the appropriate Federal banking agency 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. Amends the Truth in Lending Act to set forth certain disclosure requirements in credit card applications and solicitations.

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1 official file

• Introduced in House

  summary · EN · 7 August 1987

  Open at official source

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