The House Banking Committed lended it’s voice to the growing chorus of those calling for the discontinuation of Operation Choke Point–a federal initiative that seeks to limit the reach of various suspect businesses (pornographers, fireworks dealers, Ponzie Schemes, dating sites, ammunitions dealers, etc.) by “choking off” their access to banking.
“Small and community banks have lost valuable customers merely because their legal businesses are disfavored by Federal agencies, while consumers have lost access to merchants they need and value,” GOP Sens. Mike Crapo (Idaho), David Vitter (La.), Mike Johanns (Neb.), Jerry Moran (Kan.); Tom Coburn (Okla.); and Dean Heller (Nev.) wrote in a letter to Attorney General Eric Holder on Monday, report The Hill Blog.
The lawmakers also requested that the Justice Department provide them with a plan for how the program will be implemented going forward. That outlines has been requested by November 2.
“As part of Operation Choke Point, rather than initiating cases against specific bad actors … Federal agencies devised a list of certain ‘high-risk merchant’ categories with the intent of ‘choking-off’ these merchants’ access to payment systems and banking services,” the lawmakers wrote.
The lawmakers further complained that the law was little more than a case of political favoritism.
“This list appears to have been created with no public input, no compliance guidance or metrics for private entities to follow, and with disregard for the legality of a merchant’s operation. Further, the list has been used as a pretext by DOJ to limit essential banking services for industries out of favor by this Administration.”
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