California Credit Union League Senior Vice President of State Government Affairs Robert Wilson was spotlighted in a Cal Matters news article this week regarding credit unions’ stance on Senate Bill 278 (Senator Bill Dodd), state legislation crafted to curb elder financial liability abuse.
“We think what’s in front of us right now — while it’s going to be a heavy lift for credit unions, the good outweighs the work that’s going to go into it,” said Wilson, speaking to legislative members of the California Assembly Banking and Finance Committee on behalf of credit unions after the bill was heard. “This is going to protect seniors. At the end of the day, the (report-and-hold amendment) is going to outweigh what happened to the witness in support of the bill. If we can prevent that just once through this bill, it’s worth it.”
SB 278, originally from last year’s legislative session in Sacramento, was amended a few weeks ago. The original version would have held credit unions liable if they “should have known” elder financial abuse was occurring. The League believed this new legal standard was unworkable, since it would greatly increase the liability for credit unions, which would have caused credit unions to rethink how they would serve senior members.
The League recently worked with both the banking committee and Assembly Judiciary Committee to find a more workable solution, culminating after efforts on the bill for a whole year. The recent amendments are a direct product of that work. These amendments provide a trusted contact system and a three-day hold for transactions over $5,000 when the credit union reasonably suspects elder financial abuse.
In the Cal Matters news article, a senior who unfortunately lost $700,000 to scammers is spotlighted. She provided personal testimony to the banking committee, asking the state to slow bank transfers.
Wilson graciously noted the senior witness’s testimony while also saying that credit unions want to protect seniors.
“We also want to thank the author again and the committee chair,” he added. “Thank you.”
Unfortunately, this agreement on SB 278 might be short-lived. The bill does not currently contain an enforcement mechanism, but amendments are currently being contemplated that would insert an enforcement mechanism and “go a step-or-two too far,” Wilson elaborated afterward.
“We have to find the balance when it comes to how the bill will be enforced,” Wilson said. “If there is a sledgehammer on the back-end, we are right back to where we were a year ago. It is our hope we can focus on seniors and ensure they are protected, all while making sure they can still access the banking services they need.”
