New protections under Financial Exploitation Prevention Act go into effect Sunday

Banks, credit unions required to report financial exploitation committed against vulnerable customers

Law requires banks, credit unions to report financial exploitation

DETROIT – New protections under the Financial Exploitation Prevention Act go into effect Sunday, Sept. 26.

The act requires banks and credit unions in Michigan to report financial exploitation committed against vulnerable customers.

That includes people with mental or physical impairments and seniors.

The measure also allows financial institutions to freeze customer transactions under certain circumstances.

It was created with the help of Michigan Attorney General Dana Nessel’s Elder Abuse Task Force.

“Victims of financial exploitation do not usually know they are being taken advantage of, which is why it is so important that our financial instructions have the tools and training they need to help keep vulnerable individuals safe,” said Gov. Gretchen Whitmer. “This Act increases protections for Michiganders from unscrupulous individuals trying to exploit them. I am proud of the partnership between several government agencies and private sector entities to ensure Michiganders are protected from fraud.”

“I continue to be proud of the important change our Elder Abuse Task Force is achieving through its diligent work,” said Nessel. “This Act is the result of prioritizing our vulnerable adults through consumer protection measures and education, and financial institutions will play a vital role in preventing exploitation. The partnership between financial institutions, prosecutors, Adult Protective Services, and law enforcement will result in earlier detection and successful prosecution of those that prey on our vulnerable citizens.”

Read even more: New Protections in Place for Vulnerable Adults as Financial Exploitation Prevention Act Goes into Effect Sunday