Financial Exploitation Prevention Act becomes law Sunday
LANSING, Mich. (WJRT) -A new law goes into effect in Michigan Sunday to help protect people from being scammed.
The Financial Exploitation Prevention Act will offer new protections for vulnerable adults.
“It’s really an epidemic and so we wanted to find a way to best address the situation that we see time and time again. We have seniors that have worked so hard to build up a life savings that they can retire on, and then you have somebody who scams them and they can literally lose everything that they have worked so hard to build in a single transaction,” said Michigan Attorney General, Dana Nessel.
The new law requires financial institutions like banks and credit unions to train employees and put in place procedures to better recognize signs of financial exploitations and take action to prevent a scam from taking place.
That includes asking questions during a suspicious transaction placing a hold on the transaction for up to 10 days to give law enforcement an opportunity to make sure it’s legit.
They didn’t have this ability, they really had no choice. But now it really does give them the authority to try to work with their customers. I mean, they have the same interest we do. Financial institutions want to protect their customers, law enforcement wants to protect our citizens. And so it’s really a way for us to work together just to ensure that people’s money is protected,” Nessel said.
The Attorney General says there are currently about 73-thousand acts of elder abuse, neglect and economic exploitation each year.
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