House Banking Committee Passes Financial Records Disclosure Bills

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controversy, the Oklahoma House Banking and Finance Committee Tuesday passed bills concerning the disclosure of customer financial records and requiring a written agreement on loans in excess of $5,000.

Both bills now face House of Representatives consideration.

House Bill 1005 would allow law enforcement officers to obtain a customer's name, address, financial account number or type of account for use in a criminal law enforcement inquiry.

The bill, passed unanimously on a voice vote, was a committee substitute for House Bill 1005 by Rep. Joe Heaton, R-Oklahoma City, and House Bill 1021 by Rep. Earnest Istook, D-Oklahoma City.

The bill limits access to only those four items and stipulates that an inquiry must be prompted by a subpoena. Access to further information on a customer's account would still be governed by the federal Financial Privacy Act, which Heaton said requires 14-day written notice to the customer.

House Bill 1005 also would exempt from the Bank Privacy Act those instances where the customer whose records are sought is a party to civil litigation. The Oklahoma Discovery Code would govern those cases. The bill would allow a financial institution to recover its expenses for providing records if the institution is not a party to the litigation.

The committee also unanimously passed House Bill 1028, which states a lender or borrower cannot bring action on a credit agreement of more than $5,000 unless the agreement is in writing. …