Last week, the NCUA, in conjunction with other regulators, provided interagency guidance on how privacy laws impact the reporting of financial abuse of older adults by financial institutions.
“The guidance clarifies that reporting suspected financial abuse of older adults to appropriate local, state or federal agencies does not, in general, violate the privacy provisions of the Gramm-Leach-Bliley Act or its implementing regulations,” according to interagency guidance sent out by the CFPB. The guidance goes on to provide specific exceptions to the GLBA’s notice and opt-out requirements that would permit certain sharing of nonpublic personal information about members such as “to protect against or prevent actual or potential fraud, unauthorized transactions, claims or other liability.”
CFPB Director Richard Cordray in his prepared remarks said that “many older consumers are known personally by the tellers in their local banks and credit unions. These employees may be able to spot irregular transactions, abnormal account activity or unusual behavior that signals financial abuse sooner than anyone else can.” Credit unions should continue to remain vigilant about protecting their members from financial abuse and reporting instances to Adult Protective Services.
The CFPB also provided a blog with actual cases of elder financial exploitation and abuse, which can be found here.
Click here to read a previous Monitor story about how to spot elder abuse and reporting it to APS.