The North Carolina Bankers Association (NCBA) is advocating for the passage of House Bill 754, a bill to provide new tools to protect older adults and disabled adults from financial exploitation. NCBA developed the legislation with Representatives Stephen Ross (District 63 – Alamance), Julia Howard (District 77 – Davie, Rowan, Yadkin), Neal Jackson (District 78 – Moore, Randolph), and Sarah Crawford (District 66 – Wake). House Bill 754 enjoys strong bipartisan support. The North Carolina House of Representatives passed the legislation earlier this month unanimously and sent it to the North Carolina Senate. 

House Bill 754 would help fight the growing problem of fraud and financial exploitation by providing financial institutions with the ability to pause a disbursement or transaction from an account of a disabled adult or older adult or an account for which a disabled adult or older adult is a beneficiary or beneficial owner. By allowing for temporary pauses of transactions in appropriate circumstances, House Bill 754 provides the additional time that law enforcement agencies and county departments of social services need to investigate alleged financial exploitation, while preserving and protecting an older adult or disabled adult’s life savings. Because of the universally positive feedback and support that the bill has received, House Bill 754 has a strong likelihood of becoming law.

“Passage of House Bill 754 is critically important. The North Carolinians that the bill would protect have contributed their time, talents, and wisdom in countless ways. They are our family members, mentors, educators, caregivers, volunteers and leaders,” said Peter Gwaltney, NCBA president and CEO. “They are pillars of our communities. House Bill 754 would give financial institutions, local law enforcement, and county departments of social services a vital new tool to protect older adults and disabled adults from scams and financial exploitation.”

For more information about House Bill 754, including the bill’s sponsors, voting history, and full text of the legislation, please refer to the General Assembly’s website.

As additional background, House Bill 754 enhances protections for older adults and disabled adults that the State of North Carolina first put in place in 2013 after passage by the General Assembly of a new Article 6A of Chapter 108A of the North Carolina General Statutes. The prior law created new reporting requirements by financial institutions to local law enforcement and county departments of social services in instances of suspected fraud or financial exploitation of older adults – defined by statute as an individual 65 years of age or older – or disabled adults. In the intervening years, scams have become increasingly sophisticated and often target older adults who have spent many decades saving for retirement. Under House Bill 754:

• A financial institution would be able to pause a transaction if the financial institution and its employees believe that financial exploitation is occurring or is being attempted.
• The bill includes a variety of protections, including new recordkeeping and training requirements for financial institution employees on how to identify scams that are targeting older adults or disabled adults, as well as a limit on the duration of transaction holds or pauses to no more than 30 business days with the possibility of one extension on the timeframe.
• The bill would also expand the list of “trusted contacts.” These are those persons like a joint account owner, agent under a power of attorney, or family member who is closely associated with the older adult or disabled adult and who can be notified if financial exploitation is occurring or is being attempted.

In 1963, President John F. Kennedy designated May as national Older Americans Month to honor and celebrate the contributions of older adults. The NCBA, its member banks from across North Carolina, and their employees are proud to celebrate them and their ongoing impact during Older Americans Month and all year long. In addition to the work on development of House Bill 754, we would like to highlight initiatives of the American Bankers Association Foundation, with whom the NCBA and its subsidiary the NCBA Foundation work closely to promote financial literacy and other initiatives. The ABA Foundation offers support through a range of free programs designed to enhance quality of life for older adults. These programs are delivered locally and are tailored to their needs: www.aba.com/advocacy/community-programs/older-americans.

ABOUT THE NORTH CAROLINA BANKERS ASSOCIATION: Organized in 1897, the NCBA is a member-driven organization that provides advocacy, professional development and operational support for North Carolina’s banking industry. The mission of the NCBA is to foster an environment where North Carolina’s banks can successfully serve their customers and communities. For more information, please visit www.ncbankers.org.