Bipartisan Bill Advances in Congress to Combat Elder Financial Abuse

Bipartisan Bill Advances in Congress to Combat Elder Financial Abuse

A bipartisan legislative effort to address the growing problem of financial exploitation targeting seniors and vulnerable adults is gaining momentum in Congress. The proposed Financial Exploitation Prevention Act aims to provide new mechanisms for financial institutions to identify and intervene in suspected cases of elder abuse.

Scope and Impact of Elder Financial Exploitation

According to a 2023 report by AARP, individuals over age 60 lose approximately $28.3 billion annually due to criminal theft. Notably, 72% of these losses are attributed to perpetrators who are known to the victims, including family members, friends, or caregivers.

Legislative Progress and Provisions

On September 17, Senators Bill Hagerty (R-Tenn.) and Ruben Gallego (D-Ariz.) reintroduced the Financial Exploitation Prevention Act in the Senate, marking its second introduction this year. The House counterpart, sponsored by Representatives Ann Wagner (R-Mo.) and Josh Gottheimer (D-N.J.), received unanimous approval from the House Financial Services Committee with a 50-0 vote.

Both versions of the bill require the Securities and Exchange Commission (SEC) to submit reports to Congress outlining potential legislative and regulatory measures to prevent financial exploitation of elderly and vulnerable adults.

Empowering Financial Institutions

The legislation would authorize certain financial entities—including registered open-end investment companies and their transfer agents, such as mutual funds—to delay redemption transactions suspected of involving financial exploitation. This delay mechanism is intended to provide a critical window for further investigation and intervention to protect at-risk individuals.

Representative Wagner expressed optimism about the bill’s prospects, anticipating consideration by the full House following committee approval.