LOS ANGELES—The Free Speech Coalition (FSC), the trade group representing the adult entertainment industry, has filed a complaint with the federal Consumer Financial Protection Bureau against fintech company Novo, according to a press release posted on the FSC website.
“As an industry, we need to report incidents of financial discrimination,” FSC executive director Alison Boden said.
She added: “One of the largest hurdles we face is that our issue is largely unknown to regulators and legislators. By reporting these incidents to the CFPB, we can start to draw attention to the unfair practices of banks and other financial platforms, and help to stop this endemic discrimination. We are not the problem.”
The complaint points out that Novo rejected access to a suite of small business banking services for use by FSC. No information was provided as to the rejection. "Novo refused to provide any information as to why the application of a 501(c)6 non-profit with no apparent risk factors has been rejected and stopped communicating entirely after [being] asked if the decision involved the organization's relationship to the adult industry," FSC states.
Last month, as part of its campaign to improve banking access for the adult industry, Boden began meeting with banking regulators who encouraged FSC and its members to file complaints whenever accounts are closed or denied. Such complaints not only alert the government to potentially discriminatory practices, but the CFPB can use its authority to contact the institution and advocate on industry members' behalf.
While more detailed guidance is coming, those who suffer financial discrimination as a result of their work in the adult industry are encouraged to file a complaint with CFPB as soon as it happens. Those who have experienced financial discrimination more generally are encouraged to submit a report to Free Speech Coalition. FSC uses these reports to understand the extent and type of discrimination industry members face, as well as illustrate the harmful impact it has on individuals and businesses.
