Sen. Carney bill to prevent financial exploitation of older Mainers heads to Governor’s desk

AUGUSTA — On Monday, June 2, the Maine Senate unanimously voted to send LD 1445, “An Act to Prevent Financial Exploitation of Vulnerable Adults,” to the Governor’s desk. This bill, sponsored by Sen. Anne Carney, D-Cape Elizabeth, would enable financial institutions and credit unions to better protect certain customers, including those 65 years of age or older, from financial exploitation.

“Stories of financial exploitation of older people are personal to me and many of my constituents, as my own father was a victim of the ‘grandparent scam,’” said Sen. Carney. “The legislation passed on Monday helps protect Maine people from predatory practices by creating a process that can bring exploitation to the attention of account holders, the people they trust and law enforcement. It’s time that we give banks and credit unions a stronger tool to help prevent older Mainers from losing their life savings to a scammer.”

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, LD 1445 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. Finally, the bill would allow financial institutions and credit unions to provide confidential access to or copies of records related to suspected financial exploitation to law enforcement agencies.

In his testimony in favor of LD 1445 at its public hearing in April, Josh Steirman, Director of Government Relations for the Maine Bankers Association, said, “Fraud of all types is unfortunately increasing — especially schemes targeting older Mainers. … The bill includes several elements we view as essential: the financial institution must establish clear policy and procedures, reasonable documentation of suspected abuse must be present, and use of these mechanisms by any financial institution is encouraged but not mandated. We believe this program can prevent financial exploitation, and we encourage passage of the bill.”

In her testimony in support of LD 1445 at the public hearing, AARP Maine Fraud Watch Program volunteer Pam Partridge of North Anson said, “I have personally heard bank employees say they have concerns about the increasing financial exploitation of their customers and that they are trained to know the signs of potential fraud and what to do as a response. Buying some time to report, investigate, and restore clarity to what is really going on during a scam is a very valuable prevention strategy. … As they say, an ounce of prevention is worth a pound of cure.”

LD 1445 now heads to the Governor’s desk, where she has ten days to sign it into law, allow it to become law without her signature or veto it.

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