ATLANTA — A bill awaiting action from Georgia Gov. Brian Kemp would give banks and credit unions new authority to temporarily delay certain transactions when they suspect financial exploitation.
House Bill 945 would apply to “eligible adults,” defined as individuals age 65 or older or disabled adults. Under the measure, financial institutions could place a temporary hold on a transaction if there is reasonable cause to believe it may involve or contribute to financial exploitation, according to Atlanta News First.
The bill outlines several situations in which a hold could be applied, including transactions involving:
- An account owned by an eligible adult
- An account where an eligible adult is a beneficiary
- An account belonging to a person suspected of carrying out the exploitation
What’s Required
Atlanta News First reported that if a hold is placed, financial institutions would be required to notify all parties authorized to conduct transactions on the account, as well as any designated “trusted contact,” within three business days. Notification would not be required if the institution reasonably believes those individuals may be involved in the suspected exploitation.
The legislation also requires institutions to review the circumstances that prompted the hold, according to Atlanta News First, which added that under the proposal, a hold would expire after 15 business days but could be extended for an additional 15 business days if the institution’s review continues to support concerns about potential exploitation. Courts would have authority to shorten or extend the duration of a hold.
The bill would also allow eligible adults to designate at least one trusted contact on their account. Financial institutions could reach out to that contact if concerns arise regarding possible exploitation or account management issues. Consumers would need to contact their bank or credit union directly to add a trusted contact, Atlanta News First reported.
Immunity Provided
HB 945 includes provisions granting immunity to financial institutions and their employees who act in good faith and exercise reasonable care when placing holds or taking related actions, the report added.
The current version of the bill does not specify an effective date, which typically means it would take effect upon the governor’s signature unless otherwise stated in the final version, Atlanta News First reported.
