LANSING, Mich.– A new law in Michigan requires banks and credit unions to report financial exploitation committed against vulnerable customers/members.
The protections are the result of the Financial Exploitation Prevention Act, which went into effect on Sunday.
Those covered by the law include people with mental or physical impairments and seniors and allows financial institutions to freeze customer/member transactions under certain circumstances.
It was created with the help of Michigan Attorney General Dana Nellel’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.”
Will Play ‘Vital’ Role
Added Nessel in a statement, “I continue to be proud of the important change our Elder Abuse Task Force is achieving through its diligent work. 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.”