Mass shootings at schools and most recently, the one in June that left five people dead at a Maryland newsroom, has more people advocating for stricter gun laws. With the midterm elections looming on Nov. 6, high-risk merchant account providers and financial lenders need to pay attention. To flip control of the U.S. House, Democrats
President Trump’s administration surely deserves a round of applause for terminating the contentious Operation Choke Point, a repressive program that tortured many legitimate businesses. The Federal Deposit Insurance Corporation launched this discriminatory operation when they categorized certain industries as “high-risk” due to the type of activities. This declaration sent a red light to all the
Releasing The Gun Industry From Operation Choke Point The gun industry was riddled with uncertainties during the Obama administration, primarily due to an anti-firearm government and relentless gun control activism. As a result, financial institutions regarded gun trading as an extremely high-risk sector, whose participants had little chance of success. Banks either refused to offer
The Federal Deposit Insurance Corporation (FDIC) has noted that payday lenders, gun stores, and more than 24 other industries are “not wanted.” Operation Choke Point Operation Choke Point, a Department of Justice (DOJ) program or initiative, started in 2013. The goal of this initiative is to remove fraudulent businesses from the industry by stopping their
Operation Choke Hold, the federal program that was originally set up to help eliminate fraudulent business activity is having a bigger effect on all business, but especially business labeled “high risk”. These businesses are getting the worst of this program; in fact, many have had their banking and processing accounts shut down, even if they
A historical shift in how some federal financial law-enforcement agencies view the payments industry is under way, and unfortunately, it is not one that bodes well for the industry. Named Operation Choke Point, the effort is designed to hold banks and payment processors responsible for any illegal acts by a merchant or independent sales organization.