New law to protect Mainers from financial exploitation takes effect 

“Stop and hold” and “trusted contact” processes create new tools for banks and credit unions to prevent fraud 

AUGUSTA — Last week, a new law introduced by Sen. Anne Carney, D-Cape Elizabeth, went into effect after being passed by the Legislature earlier this year. LD 1445, “An Act to Prevent Financial Exploitation of Vulnerable Adults,” enables financial institutions and credit unions to better protect certain customers, including those 65 years of age or older, from financial exploitation. 

“Older Mainers and those protected under the Adult Protective Services Act now have another line of defense against losing their life savings to a scammer,” said Sen. Carney. “Too many Maine people have been victimized by fraud, especially older people who are more likely to have retirement savings. With this new law, banks and credit unions have a process that can bring financial exploitation to the attention of account holders, the people they trust and law enforcement.”  

Time pressure is a common technique used by scammers to compel their victims to transfer money before they have the time to fact check, contact a friend or consult with law enforcement. AARP Maine supported the legislation, testifying that it “adds strong provisions that make each of these interventions more likely and will lower the instances of Maine residents losing money to criminals in the future by involving experts, trusted acquaintances, and law enforcement.” LD 1445 interrupts the fraud process: it slows things down, so victims have time to think, call a trusted person or get law enforcement involved.  

LD 1445, in its final version, defines financial exploitation in statute. It also allows the “stop and hold” process already in Maine law for broker-dealers and investment advisers to be used by banks and credit unions for customers 65 years or older or who are protected under the Adult Protective Services Act. The legislation enables a bank or credit union to delay a disbursement from an account if financial exploitation is suspected, with proper notification to account holders and the Office of the Attorney General. 

In addition, the new law allows financial institutions to create a process for account holders to designate someone as a “trusted contact” for the bank or credit union to contact, along with the account owner, when a concern about fraud arises. The law also allows financial institutions and credit unions to provide confidential access to or copies of records related to suspected financial exploitation to law enforcement agencies. 

As non-emergency legislation, LD 1445 took effect on Sept. 24, 90 days after the First Special Session of the 132nd Legislature adjourned. It received unanimous support in both the House and the Senate and was signed by Gov. Janet Mills on June 9, 2025.  

If Mainers think they are the victim of a scam, they are encouraged to reach out to the Maine Attorney General’s office at 1-800-436-2131. 

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