House moves to expand financial‑exploitation protections to people aged 55 and older
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Summary
Lawmakers approved second reading of House Bill 5162, extending transaction‑hold authority and related safeguards to customers age 55+. Supporters said banks and credit unions back the measure; members asked about liability and good‑faith standards. The bill passed second reading 111–0.
Representative Gagnon described House Bill 5162 as a consumer‑protection measure that would extend existing transaction‑hold authorities—previously available for "vulnerable adults" under Title 43—to any customer aged 55 or older. The bill also adds misrepresentations as a trigger for holds, permits trusted contacts for customers, and allows investigative‑hold extensions when fraud investigators do not respond within the statutory window.
Gagnon said banks, independent banks, the South Carolina Banking Association and the Credit Union Association testified in support. Representative Magnuson asked whether the measure would broadly shield financial institutions from liability; Gagnon and others said existing penalties for bad‑faith action remain and that immunity applies to good‑faith determinations.
Members described local fraud patterns (members referenced scams in Edgefield County) and said the bill would speed banks' response to suspicious activity. The amendment was adopted and the measure received second reading by roll call (111–0).