SPRINGFIELD – Senate Majority Leader Kimberly A. Lightford led a new law to protect seniors and adults with disabilities from financial exploitation by empowering banks, credit unions and investment firms to intervene when suspicious activity is detected on a vulnerable adult's account.
“Financial exploitation is one of the most devastating forms of elder abuse, and it often goes undetected until serious damage has already been done,” said Lightford (D-Maywood). “House Bill 4911 gives banks, credit unions and financial professionals the authority and the protection they need to step in when something doesn't look right – and that could make all the difference for a vulnerable adult and their family.”
Under the law, financial institutions will be empowered to disclose suspicions of financial exploitation to trusted contacts, co-owners, beneficiaries, or known family members of the account holder, and will be able to place a temporary hold on transactions when exploitation is reasonably suspected. Institutions acting in good faith will be shielded from administrative and civil liability for such holds.
The law will also expand the list of mandated reporters under the Adult Protective Services Act to include investment advisers, securities dealers and financial institution employees with direct access to eligible adult clients' accounts – and will allow the state to share exploitation records with licensing boards, investigatory units, and prosecutorial bodies when the alleged abuser falls under their jurisdiction.
“No one should have to worry that the people or institutions entrusted with their finances are working against them,” Lightford said. “This law creates a stronger safety net for some of our most vulnerable residents and ensures that those positioned to spot exploitation have both the tools and the responsibility to act.”
House Bill 4911 was signed into law Thursday.
