Legislature approves Dodd’s Elder Fraud Protection Bill

By Thomas Gase

A measure from State Senator Bill Dodd, D-Napa was approved by the California Legislature on Friday that aims to strengthen elder and dependent adult financial abuse protections.

This would be done by clarifying the duties of banks and financial institutions to safeguard against fraud.

“Today we take an important step toward underscoring what steps a bank or credit union should take to protect against senior scams, which, unfortunately, are occurring all too often,” Dodd said in a news release. “My bill says in plain language that if an institution or advisor knows or should have known that an elder or dependent adult is subject to financial abuse – and repeatedly fails to act – they may be held accountable for assisting in the abusive activity. When adopted it will serve as an up-front scam prevention policy for California banks and credit unions. I thank my fellow legislators for their support.”

Financial elder abuse cases are on the rise in California. Now, when victims attempt to sue their bank for assisting in a scam, the institution can avoid responsibility by claiming it did not have actual knowledge of fraud.

However, Dodd’s legislation, Senate Bill 278, would clarify that victims of financial elder abuse can continue to hold institutions accountable when they should have known of the fraud but negligently assisted in the transfer anyway. The clarification would support victims of financial elder abuse in meeting their burden of proof. The bill will incentivize financial institutions to implement safeguards upfront, so seniors don’t lose their life savings to scams.

SB 278 is supported by elder rights advocates and Consumer Attorneys of California. SB 278 heads next to Gov. Gavin Newsom for his signature.

“Help is on the way for millions of California seniors, who are at risk of losing their life savings in a financial scam,” said Jacquie Serna of Consumer Attorneys of California said in the same news release. “SB 278 would mark a historic shift to preventing scams before they happen, holding banks and other financial institutions accountable to take common-sense steps to help seniors recognize the signs of a scam.”

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Legislature approves Dodd’s Elder Fraud Protection Bill

Senate Approves Sen. Dodd’s Elder Fraud Protection Bill

Press Release

written by CC News

SACRAMENTO – The California Senate has approved legislation from Sen. Bill Dodd, D-Napa, that would strengthen elder and dependent adult financial abuse protections by clarifying the duties of banks and financial institutions to safeguard against fraud.

“Banks must do a better job of protecting the most vulnerable Californians,” Sen. Dodd said.  “That’s why I wrote this bill, which clarifies that if these institutions assist in financial elder abuse, either knowingly or otherwise, they can be held responsible. It will motivate them to detect predatory practices before victims are robbed of their resources, dignity and quality of life – losses from which they may never recover.”

Financial elder abuse cases are on the rise in California. The breadth of predatory practices is staggering, with victims coming from all socioeconomic backgrounds. Perpetrators can be family members, trusted professionals or large financial institutions. Such institutions are uniquely positioned to detect financial abuse and take action. Unfortunately, the language of California’s current financial elder abuse law is unclear, leading to conflicting court rulings regarding the standard of proof for holding accountable a financial institution.

Now, when victims attempt to sue their bank for assisting in a scam, the institution can avoid responsibility by claiming it did not have actual knowledge of fraud.  But Sen. Dodd’s legislation, Senate Bill 278, would clarify that victims of financial elder abuse can continue to hold institutions accountable when they should have known of the fraud but negligently assisted in the transfer anyway. The clarification would support victims of financial elder abuse in meeting their burden of proof.

SB 278 is supported by elder rights advocates and Consumer Attorneys of California. It passed the Senate Monday with bipartisan support.

“At a time when online and phone scams — specifically designed to defraud senior citizens — are running rampant, banks are on the front line as mandated reporters to protect seniors from devastating losses of their life savings,” said Kathryn Stebner, president-elect, Consumer Attorneys of California. “By adding a simple clarification to existing law, SB 278 will assure justice for countless victims of financial elder abuse.”

“Older Californians are the fastest growing segment of our population and face a particularly high risk of financial fraud and abuse,” said Caleb Logan of Elder Law & Advocacy and bill co-sponsor California Low-Income Consumer Coalition. “Fortunately, banks can prevent seniors from losing their life savings to a scam. SB 278 will clarify existing law to revitalize important safeguards against financial abuse. We are proud to support this important bill and applaud Sen. Dodd’s efforts on behalf of seniors throughout California.”

Senator Bill Dodd represents the 3rd Senate District, which includes all or portions of Napa, Yolo, Sonoma, Solano, Sacramento and Contra Costa counties. More information on Senator Bill Dodd can be found at www.senate.ca.gov/dodd.  

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Senate Approves Sen. Dodd’s Elder Fraud Protection Bill

Dodd introduces elder fraud protection bill in state Senate

By Daily Republic Staff

FAIRFIELD — Legislation that would clarify the duties of banks and financial institutions to safeguard elder and dependent adult financial abuse protections was introduced Wednesday in the state Senate.

“Banks must do a better job of preventing the most vulnerable Californians from getting ripped off,” Sen. Bill Dodd, author of Senate Bill 278, said in a statement. “This bill clarifies that if these institutions assist in financial elder abuse – either knowingly or otherwise – they can be held liable. It will motivate them to detect predatory practices before victims are robbed of their resources, dignity and quality of life – losses from which they may never recover.”

Dodd, D-Napa, noted elder abuse cases are on the rise, with victims coming from all socioeconomic levels. The Solano County District Attorney’s Office has established a special unit to handle such cases.

“Perpetrators can be family members, trusted professionals or large financial institutions,” the Dodd statement said. “Such institutions are uniquely positioned to detect financial abuse and take action. Unfortunately, the language of California’s current financial elder abuse law is unclear, leading to conflicting court rulings regarding the standard of proof for holding accountable a financial institution.”

The clarification in the proposed legislation would support victims of financial elder abuse in meeting their burden of proof.

“Older Californians are the fastest growing segment of our population and face a particularly high risk of financial fraud and abuse,” Caleb Logan, of Elder Law & Advocacy and bill co-sponsor California Low-Income Consumer Coalition, said in the Dodd statement. “Fortunately, banks can prevent seniors from losing their life savings to a scam. SB 278 will clarify existing law to revitalize important safeguards against financial abuse.”

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Dodd introduces elder fraud protection bill in state Senate