Protecting Elders From Exploitation

Summary#

This bill would require the Director of the Consumer Financial Protection Bureau to issue a final rule within 180 days. The rule would require any card issuer that sends a pre-approved credit card to a senior citizen to provide fraud alerts when the card is activated. Alerts must go to the cardholder and, unless waived, to a person the cardholder picks who is at least 25 and is either a relative or spouse or has described their relationship to the issuer. A cardholder may sign a written waiver acknowledging increased risk; the issuer must keep that waiver for at least five years after the card is deactivated.

The bill also would require depository institutions and credit unions to train employees who do fraud detection on how to identify signs of financial exploitation of a senior. These institutions must notify a senior account holder within 24 hours when they detect certain account activity that may indicate exploitation. Examples of such account activity listed in the bill include irregular use of an ATM, credit card, online banking, or wire transfer; irregular cash withdrawals; irregular credit card charges; absence of a regular deposit; activity in a previously inactive account; addition of an authorized user; a change of address on an account; inability to cover a payment because of insufficient funds; a request for a credit limit increase; purchases of gift cards or prepaid debit cards over $100 in total; an ACH payment to a recipient with no prior payment history; and a gap in check numbers.

The bill defines "fraud alert" as a phone call, email, or text that describes the suspected activity in enough detail to alert the recipient and gives information on how to contact the card issuer any time, day or night. It also defines "pre-approved credit card" as a card issued after the cardholder accepts an offer based on the issuer's determination that the person likely meets the card's qualifications.

What it means for you#

• If you are a senior who receives a pre-approved credit card, the card issuer would send a fraud alert when the card is activated.
• You could choose a trusted person (age 25 or older, and a relative/spouse or someone whose relationship you describe) to also receive those alerts, unless you sign a waiver.
• Banks and credit unions would train staff to look for signs of elder financial exploitation and must notify you within 24 hours if they detect the listed suspicious account activity.
• Fraud alerts must be sent by phone, email, or text and include details and instructions for contacting the issuer at any time.

Expenses#

No publicly available information on costs or budget effects.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.