League Staff Testifies on 2 Bills Designed to Combat Elder Financial Abuse

League Director of Political Affairs and State Advocacy CeJae Vtipilson testifies on a bill designed to help financial institutions combat the financial exploitation of elderly and vulnerable adults.

League Chief Advocacy Officer JT Blau testified in support of legislation to allow account holders to add trusted contacts on their accounts which can be notified if a credit union suspects financial fraud or exploitation of elderly or vulnerable adults. Financial institutions and financial institutions’ staff would also be provided immunity from civil and administrative liability for any actions taken or omitted regarding the legislation.

League staff testified this week in support of two bills before the General Assembly that would allow for "trusted contacts" to be added to banking accounts to assist financial institutions in combating the abuse and exploitation of elderly and vulnerable adults.

Sen. Barbara Favola’s (D-40) SB 174 (Financial institutions; reporting financial exploitation of elderly or vulnerable adults) and Del. Michelle Maldonado’s (D-20) HB 692 (Financial institutions; reporting financial exploitation of senior citizens) both allow account holders to add trusted contacts on their accounts. These trusted contacts could be notified if a credit union suspects financial fraud or exploitation of elderly or vulnerable adults. Both bills also provide financial institutions and financial institutions’ staff immunity from civil and administrative liability for any actions taken or omitted regarding the legislation. The Virginia Bankers Association and AARP also testified in favor of both bills.

SB 174 was passed unanimously by the full Senate Commerce and Labor Committee on Monday, and will now be heard by the full Senate. HB 692 passed today on a unanimous vote out of the House’s Labor and Commerce Committee’s Subcommittee #1. It will next be heard by the full House Committee.

While the bills are similar both in their intent and in much of their content, there are some differences between the two. The League is working with the patrons as the bills are amended and advanced to help ensure the ultimate version of the legislation is friendly to credit unions and financial institutions.