The House Takes The Right Approach To Spotting Elder Financial Abuse

July 8, 2016 at 8:50 am Leave a comment

I haven’t had many positive things to say about federal legislation over the last five years so I’m sure the sponsors of the   “Senior Safe Act of 2016” will be overjoyed and relieved to that I actually think their proposal is a good one.

The legislation is a federal attempt to address elder financial abuse.  Most states  have already mandated reporting requirements in this area.   New York’s DFS has issued a guidance on the issue. NY law  protects any person who  reports suspected financial abuse to the Department of the Aging, a local Social services department or a law enforcement agency   based on a   good faith belief  that “appropriate action” will be taken. N.Y. Soc. Serv. Law § 473-b (McKinney).  This protection isn’t quite as expansive as what would be protected under the House bill.

I’ve always been uneasy about legislation in this area because poorly drafted legislation could make credit unions liable for not recognizing financial abuse; SAR’s can already be used to report suspected  criminal activity involving financial exploitation; and  the issues raised are best handled by  family and friends. But if there is going to be legislation in this area than the House bill provides a good framework.

The bill, which passed with overwhelming support  on  Tuesday, would authorize supervisors,   compliance  and BSA officers to report possible financial exploitation of   a person 65 years of age or older to law  enforcement  and government  agencies.  The institutions and individuals making these reports would get legal immunity  for doing so if  they train employees  on identifying and reporting elder financial abuse and they take “reasonable care” to avoid unnecessary disclosures.

There are three things I really like about this bill: First, it just authorizes a supervisor, a compliance officer  and BSA officers to report suspected elder abuse but enables any employee to spot it.  One of my concerns has always been that elder abuse is difficult to define and even though frontline employees are best positioned to spot elder abuse  the ultimate call on reporting should be made by senior personnel.

Second it places no affirmative obligation on financial institutions to report suspected abuse.  it simply protects them if they choose to do so provided they have appropriate training.

Finally, it provides a baseline of immunity for institutions that report suspected abuse.

A Most interesting Jobs Report

Any minute now  we should be getting the jobs report for June.  It’s more important than usual because May’s jobs report witnessed paltry growth of 38,000 jobs. In addition with fallout from the Brexit vote continuing,  the report will either further the narrative of an economy slowing down or be used as proof that growth is still alive and well.

 

 

Entry filed under: Advocacy, Economy, Political. Tags: , .

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Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

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