AL HB418

Establishes the Equality in Financial Services Act to prohibit large financial institutions (banks with over $20 billion in assets and major payment processors) and insurers from using "social credit scores" to discriminate in providing services.

Defines "social credit score" to include evaluations of a person's religious exercise, political speech, firearm ownership, environmental/diversity practices, abortion services, business associations with firearms or energy companies, and immigration policy positions.

Requires financial institutions to disclose within 14 days the specific reasons for denying or terminating services, including details of any speech, religious exercise, or business conduct that caused the denial.

Allows religious purpose exemptions for financial institutions and insurers to make determinations based on customers' religious beliefs, exercise, or affiliations, and requires insurers to base decisions on sound underwriting and actuarial principles.

Establishes enforcement by the Alabama State Banking Department and Alabama Department of Insurance with penalties of actual damages or $10,000 per violation (up to $30,000 for willful violations), plus attorney fees; becomes effective October 1, 2025.