AB 578

This bill allows financial service providers to refuse or delay financial

transactions when financial exploitation of a vulnerable adult is suspected. The bill

authorizes financial service providers to take certain other actions to prevent or

detect financial exploitation of vulnerable adults.

Under current law, upon receiving a report of alleged abuse, financial

exploitation, neglect, or self-neglect of any person age 60 or older who has

experienced, is experiencing, or is at risk of experiencing abuse, neglect, self-neglect,

or financial exploitation (an elder adult at risk), the elder-adult-at-risk agency in

a county must respond by investigating or must refer the report to another agency

for investigation. Similarly, having reason to believe that an adult who has a

physical or mental condition that substantially impairs his or her ability to care for

his or her needs and who has experienced, is experiencing, or is at risk of

experiencing abuse, neglect, self-neglect, or financial exploitation (an adult at risk)

is the subject of abuse, financial exploitation, neglect, or self-neglect, the

adult-at-risk agency in a county may respond by investigating to determine

whether the adult at risk is in need of protective services. “Financial exploitation”

includes obtaining an individual's money or property by deceiving or enticing the

individual or by coercing the individual to give, sell at less than fair value, or convey

money or property against his or her will without his or her informed consent, and

also includes certain crimes such as theft and forgery.

Under this bill, if a financial service provider reasonably suspects that financial

exploitation of an adult at risk or an individual who is 65 years of age or older

(together, vulnerable adult) has occurred or been attempted, the financial service

provider may, but is not required to, refuse or delay a financial transaction on an

account of the vulnerable adult or on which the vulnerable adult is a beneficiary or

on an account of a person suspected of perpetrating financial exploitation. The

definition of “financial service provider” under the bill includes financial

institutions, mortgage bankers and brokers, other types of lenders, and check

cashing services. In addition, a financial service provider may, but is not required

to, refuse or delay a financial transaction if an elder-adult-at-risk agency,

adult-at-risk agency, or law enforcement agency provides information to the

financial service provider that financial exploitation of a vulnerable adult may have

occurred or been attempted. The bill requires certain notice if a financial service

provider refuses or delays a financial transaction under these circumstances and

establishes certain time limits applicable to the refusal or delay of the financial

transaction. In addition, the bill allows a financial service provider to refuse to

accept a power of attorney of a vulnerable adult if the financial service provider

reasonably suspects that the vulnerable adult may be the victim of financial

exploitation.

The bill also provides a process for a financial service provider to create a list