New law protects elderly from fraudulent bank transactions
El Paso, Texas —
Texas law says banks are now able to take action over concerning transactions.
House Bill 3921 gives financial institutions the authority to stop transactions that drain the bank accounts of their elderly clients.
There are many cases CBS4 has reported on involving elderly people being scammed out of thousands of dollars, or even their life savings.
The bill, signed by Governor Greg Abbott, is an attempt to prevent these scams from happening.
Previously, banks, credit unions, and security firms would routinely halt fishy transactions for elderly and disabled clients.
This new law will give financial institutions more freedom to stop transactions.
Institutions will also be given immunity from having legal action taken against them if the transactions that were halted turn out to be legitimate.
Because of this new law, institutions will have to set policies clarifying reporting procedures for employees when they suspect an elderly customer is the victim of fraud.
According to this law, banks can notify a third party associated with the elderly client to provide assistance when flagging a potentially fraudulent transaction.