CFPB Faults Banks For Failing To Report Many Suspicions Of Elder Financial Abuse Directly To Law Enforcement

By Ted Knutson 

The Consumer Financial Protection Bureau faulted bank and credit unions today for frequently failing to report suspected cases of elder financial exploitation directly to the authorities. The bureau called the lapse a possible missed opportunity to strengthen prevention and response and issued an advisory urging them to step up reporting.

“More reporting to the relevant law enforcement agencies can increase investigation and prosecution,” said the CFPB in an update to a report on the issue it issued earlier this year.

Banks and credit unions tell police, adult protective services offices or other first responders in fewer than three out 10 times they suspect this kind of harm to seniors.

The agency emphasized robust reporting to adult protective services can increase the likelihood victims will receive appropriate services.

As of April, 26 states and the District of Columbia have mandated the reporting of suspected elder financial exploitation by bankers, credit union employees and other financial professionals.

In addition, since June 2018, the federal Senior Safe Act has attempted to take away the fear of financial institutions and professionals that they could be sued on privacy and other grounds for releasing personal financial information to authorities when they fear seniors may be being harmed. The law does not, however, mandate reporting. 

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CFPB Faults Banks For Failing To Report Many Suspicions Of Elder Financial Abuse Directly To Law Enforcement