H.R. 9668: Safeguarding Transactions to Outpace Predatory Senior Fraud Act

This bill would let banks and other financial institutions temporarily stop or delay certain account transactions when they reasonably believe the transaction may be part of financial exploitation of an older adult or a vulnerable person.

What transactions could be delayed

A financial institution could refuse or delay a payment or withdrawal if it believes the transaction may involve fraud or exploitation and the account belongs to:

• an older adult (someone age 62 or older),
• a vulnerable person (for example, someone with a serious physical or mental impairment, or a developmental disability), or
• someone who has already reported past financial exploitation or fraud connected to the account.

How long a delay could last

Any delay could last up to 55 days from the date the transaction was first requested. If the institution does an internal review and still believes exploitation is likely, it could extend the delay to up to 85 days total.

The institution could end the delay sooner if it decides the transaction is not likely to involve exploitation, or if a federal court orders the funds released.

Notice and reporting requirements

If a transaction is delayed or refused, the institution would have to act quickly to:

• notify people authorized to use the account, unless those people are suspected of being involved in the exploitation;
• notify a trusted contact named by the account holder, or another appropriate third party if one is available and not suspected of wrongdoing; and
• report the suspected exploitation to state or local protective services, law enforcement, and a federal regulator within two business days.

Training for employees

Financial institutions would have to train relevant employees on how to:

• spot possible financial exploitation,
• handle transactions involving older adults and vulnerable persons, and
• delay or refuse transactions under the new rules.

Legal protection for institutions

The bill would protect financial institutions from liability if they, in good faith, choose to delay a transaction, choose not to delay one, or share information with a trusted contact or authorities as allowed by the bill.

Other provisions

The Consumer Financial Protection Bureau could write rules to carry out the law. The bill also says it would not override state or local laws that give older adults or vulnerable persons more protection.

Effective date

The changes would take effect 180 days after enactment.

Relevant Companies

None found