Banks and credit card issuers engaged on gun violence
Praxis joins investor coalition
Praxis Mutual Funds® is participating in an investor coalition that engages banks and credit card issuers on the topic of gun violence.
Banks and credit card companies face significant reputational risk as the role of credit cards in financing high fatality mass shootings is disclosed. Guns and ammunition are often purchased by perpetrators with one or more credit cards shortly before mass shootings.
Most banks and credit card companies classify firearms-related business to be high risk and therefore subject to enhanced due diligence that attempts to control illegal purchases via mandated background checks and inventory control. However, few companies have enacted policies that meaningfully address this risk.
A large investor coalition, including Praxis, sent letters to nearly 20 companies on this issue. Many banks and credit card companies who responded to the initial letter expressed grave concern about escalating gun violence and the associated social and economic costs, while deferring to federal policymakers for action. Dialogues occurred with about half the companies, with more scheduled in the coming year. Praxis will continue to press the credit card industry for solutions.