When SunTrust Bank closed accounts for Brooksville’s American Gun & Pawn and Ruskin Pawn, residents were outraged.
The bank would only say it decided to not do business with pawn shops anymore.
An 8 On Your Side investigation showcased concerns from a federal program called Operation Choke Point. It may have started with good intentions – to stop crooks from hiding cash – but some in congress say it led to licensed businesses cut off from their bank accounts.
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U.S. Congressman Sean Duffy, R-WI said something needs to be done.
“These are not high risk businesses, they’ve been in our community for a long time,” he said.
Duffy is the chairman of the Oversight and Investigation Committee of the House Financial Services Committee.
“We have emails from the FDIC and memorandums of understanding and consent decrees that the regional offices have sent to banks basically say payday lending, pawn shops, gun dealers, these are prohibited businesses.”
Earlier this year, the FDIC rescinded a list of high-risk business that has been provided to banks. But Duffy fears the list is still being used.
Duffy’s committee sent a letter to banking regulators asking them to do more to tell banks to stop using this program as a guide as to what businesses to do business with.
