Bill
HB 956
HB956 requires banks and card processors to report suspected harm to adults 65+ or disabled; bans late fees and interest during protective periods; reports go to social services.
Status: Reported Favorably (Reptd Fav) — Introduced/Filed 2025; effective date in bill: October 1, 2025 (applies to fees/interest charged on or after that date)
Purpose
- To add statutory protections that reduce the financial harms experienced by older adults (age 65+) and disabled adults by (1) creating a duty for certain financial entities to report suspected materially harmful financial behavior or prolonged loss of contact, and (2) prohibiting late fees, penalties, and interest in specified circumstances while protective steps are taken.
Key provisions
- New Article 6B added to Chapter 108A (G.S. 108A‑118 and 108A‑119).
- Definitions (G.S. 108A‑118)
- Covered entity: (a) a financial institution (per G.S.108A‑113) and (b) an entity that facilitates or processes electronic fund transfers using a payment card.
- Disabled adult: as defined in G.S.108A‑101.
- Older adult: resident aged 65 or older.
- Duty to report and fee/interest relief (G.S. 108A‑119)
- If a covered entity observes or suspects a pattern of behavior that is “materially harmful” to the person’s financial well‑being, or the person has ceased all communication with the covered entity for six months, the covered entity must report the information to:
- Persons listed under G.S. 108A‑114 (if such a list has been provided by the account holder), and
- The county department of social services.
- During the period beginning at the earliest of:
- the date the covered entity first observed/suspected the harmful pattern (or the date the account holder lost contact for six months),
- the date of a cognitive‑impairment diagnosis (if a health care provider has determined the person is not capable of sound financial decisions) when a copy of the diagnosis is submitted to the covered entity, or
- the date the person began receiving cognitive care as a resident of an adult care home (with diagnosis copy if applicable),
the covered entity may not charge late fees or other penalties to the disabled/older adult.
- If the covered entity makes a loan or extends credit during that period, it may not charge any interest on that loan or credit during the period.
- Conforming change to late‑fee statute (G.S. 24‑10.1)
- Late payment charges under that statute are expressly made subject to the limitations of G.S. 108A‑119.
Who is affected
- Protected persons: North Carolina residents age 65+ and disabled adults as defined in existing law.
- Covered entities: banks, credit unions and other financial institutions, and payment card processors or other entities that facilitate electronic card transfers.
- County departments of social services and designated contacts on existing protective lists (G.S. 108A‑114) — these entities will receive mandated reports.
Practical/timing notes
- Effective October 1, 2025; applies to late fees, penalties, and interest charged on or after that date.
- The bill creates new operational and reporting obligations for covered entities (detection, reporting, documentation handling) and may require policies, staff training, and coordination with social services.
- Potential impacts include increased consumer protections and reduced financial harm to vulnerable adults, while covered entities may face increased compliance costs and exposure to unremunerated credit risk during the protective period.
Sponsor and procedural info
- Primary sponsor: Representative Willis (House); other sponsors varied in different state documents but the North Carolina text lists Rep. Willis as sponsor.
- Cross‑references: amends Chapter 108A and G.S. 24‑10.1.
- Legislative actions: bill was reported favorably by committee (Reptd Fav) and referred to Judiciary 1 / Rules as part of the normal review process.
Compiled from official sources — confirm details with the bill’s official record.
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