The Department of Justice (DOJ) has ended Operation Choke Point, an initiative designed to combat fraud but concerning to CUNA and credit unions due to potential restrictions in access to financial services. Assistant General Stephen Boyd informed Reps. Jeb Hensarling (R-Texas) and Bob Goodlatte (R-Va.) in a letter that the initiative is no longer in effect and will not be undertaken again.
“The end of Operation Choke Point removes a potential barrier for credit unions and other financial institutions to ensure consumers have access to safe and affordable financial services,” said CUNA President/CEO Jim Nussle. “Operation Choke Point and its broad enforcement tactics created unnecessary risks for consumers and the economy by limiting access to these services. Credit unions will continue to serve their members while strictly following all laws and regulations.”
Operation Choke Point was introduced by the DOJ in 2013, and allowed its Financial Fraud Task Force to investigate whether financial institutions and payment-processing companies were enabling fraudulent activity.
CUNA previously backed legislation that would have limited regulators’ ability to enforce Operation Choke Point.