Senate Bill 278 in the California Legislature — which deals with elder financial abuse and was authored by Sen. Bill Dodd (D-Napa) — has been referred to assembly committees and will be heard soon. This bill would significantly expand the liability of credit unions and even their employees in instances of elder financial abuse.
The California Credit Union League is asking all lawmakers within the California State Assembly to oppose SB 278 unless it’s amended to make the bill workable for credit unions. As drafted, the bill applies to all transactions, contains personal liability for staff who are supervisors, and has a completely unworkable “safe harbor” that the League feels will lead to rapid erosion of senior members’ relationships with their credit unions.
Your credit union will undoubtedly have very upset senior members, so please ACT NOW to preserve your ability to serve those seniors!
Credit unions have produced amendments to the bill that the League feels will lead to more prevention of fraud while not destroying the banking relationship of seniors and their credit unions. These amendments would focus on transactions over $10,000. They offer a safe harbor if a credit union implements one of the following actions:
Take action through our Connect for the Cause campaign TODAY to enshrine credit unions’ ability to serve the senior population! Please share this campaign with your staff and board members. All California credit union members and employees are eligible to participate.
If you have any questions or issues, please email Leagues Senior Vice President of State Government Affairs Robert Wilson.