Consumer Protection - Electronic Funds Transfers - Regulations (Elder Fraud Prevention Act of 2025)
If enacted, SB659 will alter the landscape of financial regulations in Maryland. By requiring the implementation of state-specific protections for electronic funds transfers, it places an emphasis on safeguarding consumers, particularly vulnerable populations such as the elderly. This legislative effort reflects a proactive approach to combat elder fraud, which has become a growing concern in the digital transactions landscape where seniors are increasingly targeted.
Senate Bill 659, titled the Elder Fraud Prevention Act of 2025, aims to enhance consumer protection concerning domestic electronic funds transfers within Maryland. The bill mandates that the Commissioner of Financial Regulation develop and implement regulations that apply to financial institutions conducting these transfers. The regulations are designed to align with existing federal laws concerning electronic funds transfers to ensure that consumers receive adequate protections during such transactions.
While the bill has largely received support due to its focus on consumer advocacy, there may be contention regarding the implications for federally-chartered institutions. As indicated in the text, if SB659 is determined to be non-applicable to some federal entities, it could lead to confusion or potential gaps in protection. Critics might argue that the bill could create a dual regulatory framework that complicates compliance for financial institutions that serve customers both in Maryland and other states or jurisdictions.