The California Elder Financial Abuse Prevention Act.
- Authorizes banks to delay or block suspicious transactions when they suspect financial abuse of elderly or impaired adults.
- Allows financial institutions to notify family members or authorized contacts about suspected elder financial abuse.
- Protects banks from legal liability when taking actions to prevent suspected financial exploitation.
- Permits transaction holds for up to 30 business days while suspected elder financial abuse is investigated.
Assembly Member Pacheco's California Elder Financial Abuse Prevention Act authorizes banks and credit unions to intervene when they suspect financial exploitation of older adults or dependent individuals. The legislation permits financial institutions to temporarily delay transactions, prevent account ownership changes, and refuse fund transfers when they observe potential abuse or receive related information from government agencies.
The bill defines protective measures for two categories of "eligible adults": individuals aged 65 or older, and adults with substantial mental or functional impairments that affect financial decision-making. When financial institutions identify suspicious activity, they may pause transactions for up to 30 business days, block changes to account beneficiaries, and decline instructions from powers of attorney. This hold period can be extended if abuse concerns persist or terminated early if the institution determines no risk exists or a court orders the release of funds.
Financial institutions may notify designated third parties - including family members, account co-owners, or fiduciaries - about suspected abuse, though they retain discretion to withhold notification if they believe the third party may be involved in the exploitation. The bill exempts these disclosures from state privacy laws while limiting the information shared to general abuse concerns. It also aligns with existing commercial codes and federal banking regulations by establishing that transaction delays under the act do not constitute wrongful payment denials or violate funds transfer rules.
 Phillip ChenR Assemblymember | Committee Member |  Not Contacted | |
 Cecilia Aguiar-CurryD Assemblymember | Bill Author | Not Contacted | |
 Blanca RubioD Assemblymember | Committee Member | Not Contacted | |
 Mike FongD Assemblymember | Committee Member | Not Contacted | |
 David AlvarezD Assemblymember | Bill Author | Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
- Authorizes banks to delay or block suspicious transactions when they suspect financial abuse of elderly or impaired adults.
- Allows financial institutions to notify family members or authorized contacts about suspected elder financial abuse.
- Protects banks from legal liability when taking actions to prevent suspected financial exploitation.
- Permits transaction holds for up to 30 business days while suspected elder financial abuse is investigated.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Assembly Member Pacheco's California Elder Financial Abuse Prevention Act authorizes banks and credit unions to intervene when they suspect financial exploitation of older adults or dependent individuals. The legislation permits financial institutions to temporarily delay transactions, prevent account ownership changes, and refuse fund transfers when they observe potential abuse or receive related information from government agencies.
The bill defines protective measures for two categories of "eligible adults": individuals aged 65 or older, and adults with substantial mental or functional impairments that affect financial decision-making. When financial institutions identify suspicious activity, they may pause transactions for up to 30 business days, block changes to account beneficiaries, and decline instructions from powers of attorney. This hold period can be extended if abuse concerns persist or terminated early if the institution determines no risk exists or a court orders the release of funds.
Financial institutions may notify designated third parties - including family members, account co-owners, or fiduciaries - about suspected abuse, though they retain discretion to withhold notification if they believe the third party may be involved in the exploitation. The bill exempts these disclosures from state privacy laws while limiting the information shared to general abuse concerns. It also aligns with existing commercial codes and federal banking regulations by establishing that transaction delays under the act do not constitute wrongful payment denials or violate funds transfer rules.
Phillip ChenR Assemblymember | Committee Member | Not Contacted | |
Cecilia Aguiar-CurryD Assemblymember | Bill Author | Not Contacted | |
Blanca RubioD Assemblymember | Committee Member | Not Contacted | |
Mike FongD Assemblymember | Committee Member | Not Contacted | |
David AlvarezD Assemblymember | Bill Author | Not Contacted |