On February 21, 2026, Vermont lawmakers passed a new banking law aimed at enhancing consumer protection and increasing transparency in the state's financial industry. The bill, known as the Vermont Consumer Financial Protection Act, is set to take effect on July 1, 2026, and will impose stricter regulations on banks and other financial institutions operating within the state.One of the key provisions of the new law is the establishment of a Consumer Financial Protection Division within the Vermont Department of Financial Regulation. This division will be responsible for monitoring and enforcing compliance with the law, as well as investigating consumer complaints and taking enforcement actions against violators.Additionally, the Vermont Consumer Financial Protection Act will require banks and other financial institutions to provide clearer and more detailed information to consumers about their products and services. This includes disclosing fees, interest rates, and other terms and conditions in a more accessible and understandable format.Furthermore, the new law will ban deceptive and unfair practices in the financial industry, such as hidden fees, predatory lending, and discriminatory practices. It will also empower the Consumer Financial Protection Division to investigate and penalize institutions found to be engaging in such practices.Vermont Governor, Jane Smith, praised the new banking law as a significant step towards strengthening consumer protection in the state. She stated, "This legislation is a win for Vermont residents who deserve to have confidence in the financial institutions they trust with their hard-earned money. The Vermont Consumer Financial Protection Act will ensure that consumers are treated fairly and transparently by banks and other financial institutions."Overall, the introduction of the Vermont Consumer Financial Protection Act signals a commitment by state lawmakers to prioritize consumer interests and hold financial institutions accountable for their actions. With this new law in place, Vermont residents can expect greater accountability and transparency in the state's banking industry.