On February 22, 2026, lawmakers in Indiana introduced a new bill aimed at strengthening consumer protection in the state's banking sector. The proposed legislation, known as the Consumer Banking Protection Act, seeks to address concerns raised by consumers and advocates regarding unfair practices and lack of transparency in the industry.One key provision of the bill is the establishment of a Consumer Financial Protection Bureau within the Indiana Department of Financial Institutions. This new agency would be responsible for monitoring and regulating banks and financial institutions to ensure they are complying with state and federal consumer protection laws. The bureau would also provide a mechanism for consumers to file complaints and seek redress for any violations.In addition, the bill includes measures to improve transparency in banking practices, such as requiring banks to provide clear and understandable disclosures of fees, interest rates, and terms of service. The legislation also aims to protect consumers from predatory lending practices by imposing limits on fees and interest rates charged by payday lenders and other high-cost financial institutions.Supporters of the bill argue that it is necessary to prevent financial exploitation and fraud, particularly among low-income and vulnerable populations. They point to a recent spate of cases in which consumers have been harmed by deceptive practices and hidden fees imposed by banks and other financial institutions.However, the bill has faced opposition from the banking industry, which argues that it could impose unnecessary burdens and costs on financial institutions. Some critics also question the need for additional regulation, arguing that existing laws and enforcement mechanisms are sufficient to protect consumers.The Consumer Banking Protection Act is still in the early stages of the legislative process and will undergo further review and debate before potentially being signed into law. Lawmakers are expected to hold public hearings and solicit feedback from stakeholders before moving forward with the bill.Overall, the proposed legislation reflects growing concerns about the need to strengthen consumer protection in the banking sector and ensure that financial institutions are held accountable for their actions. With the introduction of the Consumer Banking Protection Act, Indiana lawmakers are taking steps to address these important issues and safeguard the interests of consumers across the state.