Tennessee lawmakers passed legislation that protects senior citizens from financial exploitation, while California legislators are deliberating a bill that would do the same.
The Tennessee General Assembly approved the Elderly and Vulnerable Adult Financial Exploitation Prevention Act, which gives bankers additional tools and flexibility to help protect seniors when they suspect financial exploitation.
Specifically, the bill allows banks to delay or refuse to conduct withdrawals from the account of an elderly customer or vulnerable adult. It also lets banks establish a list of persons the customer would like to have contacted if fraud is suspected. The bank can subsequently refuse to accept an authorized power of attorney if they believe the agent is exploiting the customer.
The Tennessee Bankers Association applauded the action.
“Bankers are often on the front lines of witnessing attempted exploitation, and these tools will give them greater flexibility to protect vulnerable Tennesseans,” Tim Amos, executive vice president of the Tennessee Bankers Association, said.
The bill’s sponsor, State Senate Majority Leader Mark Norris (R-Collierville), said the legislation will work to protect the “silver tsunami” of Tennesseans reaching retirement age in the coming years.
The bill was co-sponsored by State Rep. Kevin Brooks (R-Cleveland).
“It’s a great day for our Greatest Generation here in Tennessee,” Brooks said. “I’d like to thank the Tennessee Bankers Association for trusting me to shepherd this important bill through the committees and the House in Nashville. Today, we spoke for those who have no voice. Today, we have increased protections to those who are most vulnerable in our state.”
It becomes law once signed by the governor.
In California, the Assembly Committee on Aging and Long-Term Care passed Assembly Bill 611, which gives banks or credit unions the statutory authority to decline a power of attorney if a report of financial abuse of an elder or dependent adult has been made to adult protective services or local law enforcement.
The legislation is sponsored by the California Bankers Association.
California has the largest elder adult population in the nation – with approximately 4 million people over the age of 65 – and this figure is projected to almost double in the next 20 years, according to the California Department of Finance. As that population grows, elder financial abuse is expected to become more prevalent, increasing the importance of our efforts to protect senior citizens.
The bill now advances to the Assembly Judiciary Committee for their consideration.