From The Tribune staff reports
MONTGOMERY — Senator Shay Shelnutt of Trussville is once again sponsoring legislation aimed at reducing instances of elder financial abuse, a problem that costs older Americans billions of dollars every year.
Senate Bill 181, the Elderly and Vulnerable Adult Financial Protection Act, allows banks and credit unions to refuse or delay a transaction whenever financial abuse of a customer is suspected and the customer is at least 65 years of age or unable to manage his or her own affairs because of physical or mental impairment.
The bill unanimously passed the Alabama Senate last week and now moves to the Alabama House of Representatives.
This is the second year in a row that Shelnutt, who chairs the Senate Banking and Insurance Committee, has sponsored this bill, which is supported by the Alabama Bankers Association, the League of Southeastern Credit Unions, and the AARP. Last year’s version failed to become law because the Alabama Legislature was forced to adjourn earlier than expected in 2020 due to COVID-19.
In addition to banning the transaction itself, Shelnutt’s legislation installs reporting protocols for financial institutions and creates a process for contacting selected people associated with the customer, such as a relative, attorney, or accountant.
The bill will be managed in the House of Representatives by Rep. Chris Blackshear of Phenix City, who chairs the House Financial Services Committee.
