The California Elder Financial Abuse Prevention Act.
- Authorizes banks to delay or block suspicious transactions to protect elderly and dependent adults from financial abuse.
- Allows financial institutions to notify family members and authorized parties when elder financial abuse is suspected.
- Provides banks legal protection when refusing transactions they reasonably believe may involve elder exploitation.
- Permits holds on suspicious transactions for up to 30 business days while potential fraud is investigated.
Assembly Member Pacheco's California Elder Financial Abuse Prevention Act authorizes banks and credit unions to implement protective measures when they suspect financial exploitation of elderly or dependent adults. The legislation permits depository institutions to delay or block suspicious transactions, prevent account ownership changes, and refuse instructions from individuals claiming power of attorney over an eligible adult's accounts.
The bill defines eligible adults as individuals aged 65 or older, as well as adults 18 and over who have substantial mental or functional impairments that affect their financial decision-making capacity. When these institutions observe potential abuse or receive related information from government or law enforcement agencies, they may take temporary protective actions for up to 30 business days. This period can be extended if the institution maintains reasonable concerns about ongoing abuse attempts, unless a court orders the release of funds.
Financial institutions may notify designated third parties, including family members, account co-owners, or fiduciaries, about suspected exploitation. The bill exempts these notifications from state privacy laws while allowing institutions to withhold information from third parties they suspect of perpetrating the abuse. The legislation also clarifies that delayed or refused transactions under these circumstances do not constitute wrongful dishonor under existing commercial codes.
 Phillip ChenR Assembly Member | Committee Member |  Not Contacted | |
 Blanca RubioD Assembly Member | Committee Member | Not Contacted | |
 Mike FongD Assembly Member | Committee Member | Not Contacted | |
 Diane DixonR Assembly Member | Committee Member | Not Contacted | |
 Blanca PachecoD Assembly Member | Bill Author | Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
- Authorizes banks to delay or block suspicious transactions to protect elderly and dependent adults from financial abuse.
- Allows financial institutions to notify family members and authorized parties when elder financial abuse is suspected.
- Provides banks legal protection when refusing transactions they reasonably believe may involve elder exploitation.
- Permits holds on suspicious transactions for up to 30 business days while potential fraud is investigated.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Assembly Member Pacheco's California Elder Financial Abuse Prevention Act authorizes banks and credit unions to implement protective measures when they suspect financial exploitation of elderly or dependent adults. The legislation permits depository institutions to delay or block suspicious transactions, prevent account ownership changes, and refuse instructions from individuals claiming power of attorney over an eligible adult's accounts.
The bill defines eligible adults as individuals aged 65 or older, as well as adults 18 and over who have substantial mental or functional impairments that affect their financial decision-making capacity. When these institutions observe potential abuse or receive related information from government or law enforcement agencies, they may take temporary protective actions for up to 30 business days. This period can be extended if the institution maintains reasonable concerns about ongoing abuse attempts, unless a court orders the release of funds.
Financial institutions may notify designated third parties, including family members, account co-owners, or fiduciaries, about suspected exploitation. The bill exempts these notifications from state privacy laws while allowing institutions to withhold information from third parties they suspect of perpetrating the abuse. The legislation also clarifies that delayed or refused transactions under these circumstances do not constitute wrongful dishonor under existing commercial codes.
Phillip ChenR Assembly Member | Committee Member | Not Contacted | |
Blanca RubioD Assembly Member | Committee Member | Not Contacted | |
Mike FongD Assembly Member | Committee Member | Not Contacted | |
Diane DixonR Assembly Member | Committee Member | Not Contacted | |
Blanca PachecoD Assembly Member | Bill Author | Not Contacted |