Committee introduces measure to let banks temporarily hold suspected transactions involving seniors

Representative Jeff Ehlers, R‑Meridian, told the House Business Committee on Feb. 7 that RS32195 change 1 would give financial institutions an explicit, statutory tool to respond when they suspect a transaction is exploitative of a person aged 65 or older or a vulnerable adult.

"This RS relates to, preventing financial fraud among senior citizens aged 65 and older and vulnerable adults. It gives a tool to our financial institutions," Ehlers said. Under the proposal, a bank or credit union that has a reasonable basis to believe a transaction is fraudulent could place a hold, perform an initial investigation and have additional time to coordinate with law enforcement and the Department of Finance for a fuller inquiry.

During committee discussion Representative Marmon asked why a statutory rule was needed rather than leaving the authority to individual institutions' internal policies. Ehlers answered that placing the authority in statute gives institutions legal protection when they act to hold transactions and helps to avoid member complaints or legal exposure when staff take protective steps.

A motion to introduce RS32195 change 1 (elder exploitation) was made by Representative Goody, who was substituting for Representative Wheeler, and the committee approved the introduction by voice vote. No recorded roll-call tally was announced in the meeting minutes.

Committee members indicated further detail would be provided at a formal bill hearing, where stakeholders and law enforcement can testify and the committee can consider statutory language and procedural safeguards.