[Congressional Record Volume 165, Number 170 (Monday, October 28, 2019)]
[House]
[Pages H8503-H8505]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               FINANCIAL INCLUSION IN BANKING ACT OF 2019

  Mr. DAVID SCOTT of Georgia. Madam Speaker, I move to suspend the 
rules and pass the bill (H.R. 4067) 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. 4067

       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 2019''.

     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, 2029.

     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 (Mrs. Lawrence). Pursuant to the rule, the 
gentleman from Georgia (Mr.   David Scott) and the gentlewoman from 
Missouri (Mrs. Wagner) each will control 20 minutes.
  The Chair recognizes the gentleman from Georgia.


                             General Leave

  Mr. DAVID SCOTT of Georgia. 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 to insert extraneous 
material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Georgia?
  There was no objection.
  Mr. DAVID SCOTT of Georgia. Madam Speaker, I yield myself such time 
as I may consume.
  Madam Speaker, my bill, H.R. 4067, is a response to a national crisis 
that we have in terms of taking better financial care of the American 
people.
  This bill is called the Financial Inclusion in Banking Act, and 
almost the entirety of what we are doing is included in those two 
words, ``financial inclusion.'' It truly reflects the key focus of this 
legislation, which is ensuring that, in this Nation, consumers of all 
backgrounds, of all races, of all income levels have access to our 
great financial system and our financial products that are affordable, 
that are safe, and that meet their needs.
  The benefits of traditional banking and financial inclusion may not 
be immediately apparent, Madam Speaker, until one considers the cost 
and the long-term struggles of financial exclusion. Imagine, we have 
people, millions of households, without even a checking account. Simple 
tasks suddenly become more challenging without a checking account, more 
time-consuming, more expensive. Without a bank account, the simple act 
of accessing their own paychecks causes millions of consumers in this 
country to rely on costly check-cashing services or high-fee money 
orders.
  Take paying a utility bill, just paying your light bill or your gas 
bill means a trip across town and a lengthy wait in line to pay your 
bill in cash if you find a place where you can even cash your paycheck 
without a bank account.
  When the 31st or the 30th of each month arrives, and the financial 
ends don't meet, families are out there, millions of our families in 
America who are forced to payday lenders, to pawn shops for loans, to 
predatory bad actors, to loan sharks, just to make do. In the event of 
a tragedy, a hospital trip, a family emergency, these challenges are 
multiplied many times over.
  The reality is that, in our increasingly highly technical electronic 
online banking system and broadband, and in an increasingly credit-
based economy, unbanked and underbanked consumers are being left 
behind. They are being abandoned to the predators that are out there.
  The FDIC gave some very valuable statistics from a report just a few 
months ago. It reported that 8.4 million American households--that is 
not the individuals; it is just the households. Nobody in these 
households is considered in a way that they have a checking or a 
savings account. 8.4 million American households, nobody in the house, 
not mama, not daddy, not grandmama, not uncle, not cousin, nobody in 
that household has even a bank account.
  Then, according to the FDIC, an additional 24.2 million American 
households are underbanked, which means that that household has limited 
access to traditional banking but has to rely on the use of risky 
alternative financial services to manage just basic maneuvers in their 
financial lives.
  I want to take a moment, Madam Speaker, to fully explain and describe 
the nature of this problem. I hope the American people who are 
listening will understand now why I say we have a national crisis and 
this is why we need my bill. The Financial Inclusion in Banking Act, a 
bill I was proud to introduce earlier this year, gets to the heart of 
this issue. This is what it does.
  It directs the Consumer Financial Protection Bureau to: one, research 
factors standing in the way of financial inclusion of the American 
people so we can understand the hurdles that these individuals and our 
consumers face; two, the bill will also direct the CFPB to recommend 
best practices to increase participation in the formal

[[Page H8504]]

banking sectors to bring our consumers out of the shadows of risky, 
predatory, alternative financial services; and, three, my bill will 
direct the CFPB to work with minority depository banks, African 
American-owned banks and institutions, consumer advocates, and civil 
rights groups to make sure that their recommendations--they are out 
there grappling day to day with the unbanked and underbanked.
  They need to be brought to the table so we can learn from these 
groups what we must do in order to reflect the needs of the most 
marginalized and unbanked consumers among us and the most underserved 
communities across our Nation while also simultaneously strengthening 
and growing many of the minority-owned banking institutions, African 
American institutions particularly.
  Madam Speaker, do you know that there has not been a new African 
American-owned bank in the last 25 years and that we are losing 
minority banking ownership? What better opportunity? Who knows best 
this group that is marginalized?
  We will be able to solve two problems, enrich and grow our minority 
depository institutions while at the same time providing a way to get 
nearly 58 million Americans out of the grasp of these predators and 
into our great banking system.
  Finally, H.R. 4067 will direct the CFPB to promote strategies to 
improve financial education. You cannot have consumer financial 
protection for the American people if you don't have consumer financial 
education for the American people. That is an integral part that will 
empower them with the tools necessary to manage their financial lives.
  Personal financial education is the key, especially for our young 
people. But you know how terribly critical this issue is? Only 17 of 50 
States in our Nation's public school systems even require a course in 
financial education, only 17.

  We can do much better. This bill will start the wheel moving. And we 
are going to be bringing another bill so that we can be able to give 
the Consumer Financial Protection Bureau grant-making authority.
  Madam Speaker, we are the richest Nation in the world. We need to 
apply our resources, and we need to pass legislation that will mandate 
the teaching of financial education in all 50 States, not just 17.
  I have to thank a lot of people who have been working with me for my 
bill. First, I thank our chairwoman, Ms. Maxine Waters, who has been 
working with us and her staff and my staff as we tackle this issue. I 
also thank my friends from the other side, the Republicans who are 
working with us, as well, for this is not a Democratic issue or a 
Republican issue. This is an American issue. And we will bring the 
energy to make sure that we are able to pass this bill.
  I am proud to put the bill forth, and I urge my colleagues to vote in 
favor of it.
  Madam Speaker, I reserve the balance of my time
  Mrs. WAGNER. Madam Speaker, I yield myself such time as I may 
consume.
  I thank and congratulate the gentleman from Georgia (Mr.   David 
Scott), my good friend, on so much heavy lifting and the work that he 
has done to bring this bipartisan piece of legislation to the floor, 
along with our former colleague from Wisconsin (Mr. Duffy) who was also 
very involved with you, Madam Speaker, on this bipartisan piece of 
legislation, H.R. 4067.
  According to the most recent FDIC survey of unbanked and underbanked 
households, 6.5 percent of U.S. households were unbanked in 2017, 
meaning no one in the household had a checking or savings account. That 
equates to approximately 8.4 million American households.

                              {time}  1715

  The same survey showed that an additional 18.7 percent of households 
were underbanked, meaning that the household had a bank account but 
also obtained financial services outside the mainstream banking system. 
That is more than 24 million U.S. households composed of nearly 50 
million adults and 15 million children, Madam Speaker.
  These statistics point to the staggering number of Americans who have 
limited access to traditional banking services.
  While these numbers have, thankfully, declined since the financial 
crisis, the Consumer Financial Protection Bureau's Office of Community 
Affairs has and continues to engage in efforts to examine the unbanked 
and underbanked, as well as allocate resources to Americans who remain 
credit invisible.
  The Office of Community Affairs works with the CFPB's Office of 
Research and the Office of Fair Lending to examine credit deserts and 
equip communities with tools for financial education.
  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.
  Despite the progress that has been made, this remains an important 
issue that merits our attention. By further directing the CFPB's Office 
of Community Affairs to focus its work toward the underserved, we are 
working to assure these consumers are not overlooked.
  This bill reaffirms our intent to engage in efforts to examine the 
unbanked and underbanked and identify solutions to deliver resources to 
Americans who remain credit invisible.
  All Americans deserve access to the basic financial tools that will 
help them achieve financial independence, and this bill takes an 
important step in promoting financial inclusion and providing access to 
all Americans.
  Madam Speaker, I thank the gentleman from Georgia (Mr.   David Scott) 
for all of his tireless efforts on this bill, and I urge my colleagues 
to support the Financial Inclusion in Banking Act.
  Madam Speaker, I reserve the balance of my time.
  Mr. DAVID SCOTT of Georgia. Madam Speaker, first, I would like to 
inquire if the gentlewoman has any more speakers.
  Mrs. WAGNER. Madam Speaker, I am ready to yield back if the gentleman 
is ready to close.
  Madam Speaker, I yield back the balance of my time.
  Mr. DAVID SCOTT of Georgia. Madam Speaker, I am so glad that the 
gentlewoman mentioned Sean Duffy. I thank Mrs. Wagner for doing that.
  Madam Speaker, Sean Duffy literally--to tell you the truth, I told 
him in committee, when he didn't show up, when we found out so we 
couldn't give our great speeches for him, I told him he broke my heart 
when I heard he wasn't coming back. I said here we are working on this 
monumental bill, he was the lead Republican sponsor on it and has 
brought it a mighty long way. But a great American has decided to 
retire from the Congress, Madam Speaker, and that is Sean Duffy of 
Wisconsin.
  He and I served on that committee for years, and he has played a 
monumental role with us in this bill. We wouldn't be here with it on 
the floor with the strong bipartisan support we have if it weren't for 
the leadership of Sean Duffy.
  Mrs. WAGNER. Madam Speaker, will the gentleman yield?
  Mr. DAVID SCOTT of Georgia. Madam Speaker, I yield to the gentlewoman 
from Missouri (Mrs. Wagner).
  Mrs. WAGNER. Madam Speaker, I share the gentleman from Georgia's 
sentiment completely, and we are grateful to Sean Duffy. We wish him 
and his family the very, very best in making the choice to choose to 
put his family first and retire from this wonderful institution.
  Madam Speaker, I thank the gentleman from Georgia (Mr.   David Scott) 
for yielding to me to say a word or two about my friend, Mr. Duffy.
  Madam Speaker, I urge passage of this wonderful, bipartisan piece of 
legislation, H.R. 4067.
  Mr. DAVID SCOTT of Georgia. Madam Speaker, I am urging that we get a 
unanimous vote on this, that every single Member of Congress will send 
a powerful message that we are no longer going to stand by and have 58 
million Americans out there waiting for the pawns of these predatory 
lenders, these loan sharks, and others. No. We want to bring them out 
of the shadows and bring them into our great American financial system.
  Madam Speaker, I urge everyone to vote for the bill, and I hope we 
have a unanimous vote.

[[Page H8505]]

  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 Georgia (Mr.   David Scott) that the House suspend the 
rules and pass the bill, H.R. 4067, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________