Texas HB4778 sets rules for financial institutions to follow when terminating banking services for customers.

Texas HB4778 amends the Business & Commerce Code to establish rules for financial institutions terminating banking services. The bill applies to institutions chartered under state law that lend only to state residents or businesses. It requires institutions to provide notice and a reason for termination, and allows customers 10 business days to appeal. The Texas Department of Banking reviews appeals and can order reversal of terminations deemed unauthorized. Customers can also sue for declaratory and injunctive relief if they prove violations. The act takes effect September 1, 2025.

Texas HB4778 sets rules for financial institutions to follow when terminating banking services for customers.

Texas HB4778 amends the Business & Commerce Code to establish rules for financial institutions terminating banking services. The bill applies to institutions chartered under state law that lend only to state residents or businesses. It requires institutions to provide notice and a reason for termination, and allows customers 10 business days to appeal. The Texas Department of Banking reviews appeals and can order reversal of terminations deemed unauthorized. Customers can also sue for declaratory and injunctive relief if they prove violations. The act takes effect September 1, 2025.