Financial abuse of an elder or dependent adult: fraudulent transactions: liability.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Banking and Finance
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Overview
This bill updates California law to strengthen protections against financial abuse of elders and dependent adults. It requires financial institutions to report suspected instances of financial abuse and increases the civil penalties for failing to do so. The bill also establishes new provisions regarding fraudulently induced transactions, including limiting a financial institution’s liability for such transactions and requiring them to investigate consumer claims of abuse. Finally, it modifies existing reporting requirements for mandated reporters and clarifies the circumstances under which a report is required.
Key provisions
- Increases civil penalties for failure to report financial abuse of elders and dependent adults to $10,000 and $50,000.
- Limits a financial institution’s liability for fraudulently induced transactions to the lesser of $50 or the amount obtained before notice.
- Requires financial institutions to investigate consumer claims of being victims of fraudulently induced transactions within 10 business days of receiving notice.
- Establishes a process for injured consumers to bring civil actions against noncompliant financial institutions.
- Defines ‘fraudulently induced transaction’ and ‘injured consumer’ for legal clarity.
- Mandates that financial institutions report suspected financial abuse to adult protective services or law enforcement.
- Clarifies the definition of ‘mandated reporter’ and outlines reporting procedures.
- Addresses the issue of powers of attorney in cases of suspected financial abuse.
Bill text
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Sponsors
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1 on record
Primary sponsor
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