Texas SB2906 sets rules for terminating banking services by financial institutions, requiring notice and a reason, and allowing appeals.

Texas SB2906 amends the Business & Commerce Code to add Chapter 601A, which imposes limitations on the termination of banking services by financial institutions. The bill applies to financial institutions formed or chartered under Texas law that extend credit to state residents or businesses. It mandates that institutions provide notice and a reason before terminating a bank account, line of credit, or other banking instrument. Customers can file an appeal within 10 business days of receiving termination notice.

Texas SB2906 sets rules for terminating banking services by financial institutions, requiring notice and a reason, and allowing appeals.

Texas SB2906 amends the Business & Commerce Code to add Chapter 601A, which imposes limitations on the termination of banking services by financial institutions. The bill applies to financial institutions formed or chartered under Texas law that extend credit to state residents or businesses. It mandates that institutions provide notice and a reason before terminating a bank account, line of credit, or other banking instrument. Customers can file an appeal within 10 business days of receiving termination notice.