Bill > AB909

This bill addresses financial abuse targeting elders and dependent adults by establishing comprehensive protections and liability limitations for victims of fraudulently induced financial transactions. The bill increases civil penalties for financial institutions that fail to report suspected financial abuse from $1,000 to $10,000 and from $5,000 to $50,000 for willful failures, and allows victims to recover these penalties. It limits an injured consumer's liability for fraudulent transactions to either $50 or the amount obtained before the financial institution has notice of potential fraud, whichever is less. The bill requires financial institutions to investigate potential fraudulent transactions within 10 business days of receiving notice from a consumer and to provisionally recredit the consumer's account during the investigation. Additionally, it provides injured consumers the right to bring civil actions against non-compliant financial institutions, potentially recovering actual damages, treble damages in certain circumstances, statutory damages, and attorney's fees. The legislation recognizes the significant economic and emotional impact of fraud on elders and dependent adults, emphasizing that financial institutions are best positioned to identify and prevent such transactions. By establishing clear guidelines and consequences, the bill aims to protect vulnerable populations from financial exploitation.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB909