Virginia 2024 Regular Session

Virginia House Bill HB373

Introduced

1/6/24

Refer

1/6/24

Caption

Financial institutions; reporting financial exploitation of elderly or vulnerable adults.

Impact

Should this bill be enacted, it would require financial institutions to develop procedures for reporting and communicating suspected cases of financial exploitation. The bill grants immunity from legal liability for financial institutions that act in accordance with the reporting provisions, which encourages proactive measures to protect vulnerable clients without fear of repercussions. This change will likely lead to increased accountability within financial institutions regarding the treatment of elderly and vulnerable customers, promoting a safer banking environment for these populations.

Summary

House Bill 373 aims to enhance protections for elderly and vulnerable adults from financial exploitation. It introduces a new section to the Code of Virginia, specifically focusing on the responsibilities of financial institutions in reporting suspected financial exploitation. The bill allows these institutions to maintain a list of trusted contacts for elderly individuals, whom they can notify if exploitation is suspected, thus providing a mechanism to safeguard these individuals from financial abuse.

Contention

While the general intent of HB 373 is to provide necessary protections, there may be concerns regarding the scope of discretion granted to financial institutions. The requirement to maintain a list of trusted contacts could raise privacy issues, and the extent to which institutions should divulge information may be debated. Stakeholders might also express worries over how effectively these measures will be implemented and whether they will truly deter financial exploitation, or if they could inadvertently lead to over-reporting, burdening both financial institutions and law enforcement.