STOP Senior Fraud Act

Temporary holds to stop senior fraud

If enacted, financial institutions would be allowed to refuse or temporarily delay transactions when they reasonably believe financial exploitation occurred, is occurring, or is being attempted. This would apply to accounts held by or on behalf of older adults (age 62+), vulnerable persons, or accounts with a prior reported exploitation. An initial hold could last up to 55 days, and an internal review could extend it to 85 days; holds must end earlier if the institution finds no exploitation or a Federal court orders release. Institutions would have to notify authorized account parties unless those people are suspected, and notify a trusted contact when appropriate. They would also have to report suspected exploitation to protective services, law enforcement, and a federal regulator within two business days, train employees who handle these accounts, and would receive a safe harbor from liability for good-faith actions. The CFPB would be able to write rules to implement the section, and state or local laws that give more protection would still apply. These rules would take effect 180 days after enactment.