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House perfects bill allowing financial institutions to notify a "trusted contact" to curb suspected elder or fraud abuse
Summary
Lawmakers advanced a bill permitting banks and other financial institutions to contact a designated trusted person when staff suspect an account holder may be a victim of fraud or exploitation; the contact would not gain account control. The House perfected and printed the bill.
The House advanced legislation described as the "trusted contact" bill that would allow financial institutions to notify a designated family member or other trusted person if staff suspect an account holder is being exploited or is withdrawing large sums under suspicious circumstances.
Representative (Greene County), speaking for the measure, described scenarios in which customers who appear to be victims will not heed bank staff warnings. The bill permits the institution to inform a designated contact (for example, a daughter, son or spouse) that there may be a problem; the trusted contact would not receive access to the customer's account or decision-making authority.
A bill handler who answered questions on the floor confirmed that the trusted contact has no legal control over the account and that institutions remain mindful of privacy and liability concerns. Supporters argued the change helps financial institutions and families identify scams earlier while reducing banks' legal exposure when they follow up with a designate.
The House agreed to perfect and print House Bill 10 49; the chair recorded the motion's renewal and perfection on the floor with no recorded roll-call opposing entries in this transcript.
Ending: The bill was perfected and printed and will proceed in the House process; no final passage was recorded in this transcript.
