New law to protect finances of the elderly
Friday, September 02, 2005 - The Daily Journal
SACRAMENTO Gov. Arnold Schwarzenegger made a statement about elder abuse this week when he signed Senate Bill 1018 into law, requiring banks and credit unions to report suspicious transactions on accounts.
Presented by state Sen. Joe Simitian and co-authored by Assemblywoman Patty Berg, D-Eureka, and Louis Wolk, D-Davis, the measure requires banks and credit unions to notify authorities when they see suspicious transactions that seem to suggest someone is trying to bilk an elderly person of their savings.
"I hope this sends a message to the crooks and scammers who want to drain an older person's bank account," Berg said. "And the message is we're going to shine a light on you, and you're not going to get away with it."
Berg, who served for 20 years as the executive director of the Area One Agency on Aging, has been calling for such a measure for many years, but previous efforts were blocked by the financial industry because it didn't want to be held liable for failing to detect when a customer is being victimized, according to Berg's office.
All parties involved were able to reach an agreement this year that requires reporting while protecting bank tellers from being sued by crime victims.
"The fact is, the people on the front lines, the people most likely to see this crime taking place, are the people behind the counter in the financial institutions," Berg said. "Enlisting them in the effort to battle this growing problem is a major victory in the war against elder abuse."
Schwarzenegger signed the bill into law Monday stating, "Our older Californians have worked hard all their lives and should enjoy the fruits of their labor."
The law takes effect Jan. 1 2007, giving financial institutions time to train employees on spotting and reporting suspected abuse.
Individual tellers will not be held responsible if they are wrong about a report or if they fail to report possible abuse, but state and local prosecutors could seek civil penalties up to $5,000 against the financial institutions for failure to report suspected financial crimes involved elderly victims.
Health care professionals, social workers, nursing home workers and members of the clergy are already required under existing law to report suspected elder abuse.
# # #