West Virginia AG Warns Financial Institutions: Firearms Discrimination Violates FIND Act

• West Virginia Attorney General JB McCuskey has issued warnings to First Internet Bank, Ramp, and BILL for alleged discrimination against a firearms manufacturer.
• The financial institutions reportedly refused payment processing services to Kent Cartridge Company, an ammunition producer, citing policies against firearms entities.
• The Attorney General asserts these actions may violate the West Virginia Firearms Industry Nondiscrimination (FIND) Act, which prohibits such discrimination.
• Violations of the FIND Act can lead to private lawsuits, compensatory damages, and the termination of state contracts for financial institutions.
• Following the Attorney General's warning, First Internet Bank, Ramp, and BILL have provided assurances that they do not discriminate against firearms industry companies, with BILL having since entered into a business relationship with Kent Cartridge Company.

Financial institutions operating in West Virginia must immediately review their client onboarding and service policies to ensure compliance with the FIND Act, as the Attorney General is actively enforcing anti-discrimination provisions against firearms entities, risking state contracts and private lawsuits for non-compliant firms.

Attorney General JB McCuskey has issued a stern warning to three financial institutions, citing potential violations of West Virginia’s Firearms Industry Nondiscrimination (FIND) Act. The action follows allegations of discrimination against a firearms manufacturer located in the Eastern Panhandle. The Attorney General's office specifically notified First Internet Bank, its partner Ramp, and a separate entity named BILL, regarding their refusal to provide essential payment processing services to the Kent Cartridge Company.

Kent Cartridge Company, which has been producing premium, environmentally friendly ammunition at its Kearneysville factory for over three decades, reportedly received notification from these financial institutions that their services would be withheld due to the company's involvement in ammunition production. This refusal aligns with a broader policy maintained by the institutions, which either place businesses involved in the production, sale, or distribution of guns, accessories, ammunition, or other weapons on a prohibited list, or otherwise refuse service to such entities. The Attorney General's intervention underscores the state's commitment to enforcing its anti-discrimination banking laws.

The core of the Attorney General's warning rests on the West Virginia Firearms Industry Nondiscrimination (FIND) Act. This state legislation explicitly prohibits financial institutions from engaging in discriminatory practices against entities within the firearms industry. The Act is designed to safeguard businesses involved in the production, sale, or distribution of firearms, accessories, and ammunition from being denied crucial financial services based solely on their industry affiliation.

Non-compliance with the WV Firearms Industry Nondiscrimination Act carries significant repercussions for financial institutions operating within the state. Beyond potential private lawsuits and compensatory damages for injured parties, the FIND Act mandates that both the State of West Virginia and its political subdivisions must terminate any existing contractual relationships with discriminating institutions. Furthermore, these institutions are foreclosed from entering into any future business relationships with the state as long as the discriminatory practices persist. Attorney General JB McCuskey has made it clear that his office will zealously investigate and pursue legal action to uphold these protections.

Attorney General McCuskey's letters to the financial institutions convey a clear message regarding West Virginia's stance on firearms rights and the associated industry. He emphasized that West Virginians deeply value their right to bear arms, a sentiment reflected in the state's legislative efforts to protect firearms manufacturers, distributors, and retailers from discrimination by banks and other financial institutions. The Attorney General stated that the state's policy choice aims to ensure that the fundamental right to bear arms is not unduly burdened or inhibited through financial exclusion.

Following the Attorney General's warning, First Internet Bank, Ramp, and BILL have provided assurances that they do not discriminate against firearms industry companies, with BILL having since entered into a business relationship with Kent Cartridge Company. The Attorney General's office has acknowledged these assurances, while emphasizing its commitment to enforcing the FIND Act. This proactive enforcement by the West Virginia AG warns financial institutions about the serious consequences of firearms discrimination under the FIND Act, signaling a robust defense of the state's anti-discrimination banking policies. Financial institutions operating in West Virginia must immediately review their client onboarding and service policies to ensure compliance with the FIND Act, as the Attorney General is actively enforcing anti-discrimination provisions against firearms entities, risking state contracts and private lawsuits for non-compliant firms.

Financial institutions operating in West Virginia must immediately review their client onboarding and service policies to ensure compliance with the FIND Act, as the Attorney General is actively enforcing anti-discrimination provisions against firearms entities, risking state contracts and private lawsuits for non-compliant firms.

Source: Original reporting via the West Virginia Attorney General's Office