H.R. 10242: Janie Wynn Protecting Elders from Financial Exploitation Act

This bill would direct the Consumer Financial Protection Bureau to write a rule aimed at helping protect older adults from financial exploitation tied to credit cards and bank accounts.

What credit card companies would have to do

Within 180 days of the law taking effect, the Bureau would have to issue a final rule requiring card issuers that send pre-approved credit card offers to senior citizens to send fraud alerts when those cards are activated. These alerts would have to go to:

• the senior cardholder, and
• another person selected by the cardholder, if that person is at least 25 years old and is either:
  • a relative or spouse, or
  • someone who explains their relationship to the card issuer.

The bill allows the cardholder to waive the second alert requirement, but only if the cardholder signs a waiver acknowledging the increased risk of financial exploitation. The card issuer would have to keep a copy of that waiver for at least five years after the card is closed.

What banks and credit unions would have to do

The rule would also require depository institutions and credit unions to:

• train employees who look for fraud on how to spot signs that a senior citizen may be being financially exploited; and
• notify a senior customer within 24 hours if suspicious activity is detected in the customer’s account.

The bill lists examples of suspicious activity that could trigger notice, including:

• unusual ATM, credit card, online banking, or wire transfer activity;
• unusual cash withdrawals or credit card charges;
• an account that suddenly stops receiving regular deposits;
• activity in an account that had been inactive;
• adding an authorized user;
• a change of address;
• a payment that cannot be covered because there are not enough funds;
• a request to raise a credit limit;
• more than $100 in purchases of gift cards or prepaid debit cards;
• a new electronic payment through the ACH network to a recipient with no prior payment history from that account; and
• a gap in check numbers for checks cashed from the account.

How the bill defines the fraud alert

The bill defines a fraud alert as a notice from the card issuer about suspected fraudulent activity on a credit card. The notice would have to be sent by phone, email, or text message, describe the suspicious activity enough to warn the recipient, and include a way to contact the issuer at any time, day or night.

Who is covered

The bill uses existing legal definitions for terms like card issuer, depository institution, credit union, exploitation, and senior citizen. It defines a pre-approved credit card as one offered to someone because the issuer thinks the person likely qualifies, including offers that give the person faster or preferred consideration for approval.

Relevant Companies

• JPM — JPMorgan Chase could need to update fraud-monitoring systems, employee training, and customer-notification procedures for affected credit card and deposit accounts.
• BAC — Bank of America could face similar compliance and notification requirements for senior customers.
• WFC — Wells Fargo could need to adjust card-issuance and account-monitoring processes to meet the new rule.
• C — Citigroup could be affected through its credit card and banking operations.
• USB — U.S. Bancorp could need to revise fraud-detection training and customer alert systems.
• PNC — PNC Financial Services could be impacted by new senior-customer fraud alert and account-monitoring obligations.
• TFC — Truist Financial could face implementation costs tied to fraud detection, alerts, and employee training.
• COF — Capital One, as a major card issuer, could be affected by the new pre-approved credit card alert requirements.
• DFS — Discover Financial Services could be affected through its credit card issuance and monitoring practices.