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HD 4180

An Act protecting vulnerable adults from financial exploitation

194th Legislature (2025-2026) Introduced by John Lawn

Establishes a framework to shield adults 60+ or disabled from financial exploitation, allowing banks to temporarily delay disbursements and report suspected cases to regulators.

Senate concurred
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Bill Summary · HD 4180

Summary: An Act Protecting Vulnerable Adults from Financial Exploitation (HD 4180)

Purpose and scope

  • Purpose: Create a statutory framework to protect adults who are 60 years or older or who are disabled from financial exploitation.
  • It adds a new chapter (CHAPTER 167D½) to the General Laws governing financial exploitation of vulnerable adults, defining key terms, outlining reporting obligations for financial institutions and qualified individuals, and authorizing temporary delays of disbursements or transactions to prevent exploitation.

Key definitions (Section 1)

  • Eligible adult: Person aged 60+ or a disabled person as defined in chapter 19C.
  • Financial exploitation:
    • Wrongful taking, withholding, or use of an eligible adult’s money, assets, or property; or
    • Actions by someone (including via power of attorney, guardianship, or conservatorship) to gain control or benefit through deception, intimidation, undue influence, or dishonest conduct, or to convert assets from the adult.
  • Adult protective services agency: State offices/units investigating abuse, neglect, or exploitation of eligible adults or disabled persons.
  • Financial institution: Banks, credit unions, and similar entities authorized to operate in Massachusetts (as defined in existing chapters 167 or 171).
  • Qualified individual: Agents, employees, or personnel in supervisory/compliance/legal roles for a financial institution, and those eligible for immunity under the Senior Safe Act of 2018.

Reporting and notification (Sections 2–4)

  • If a financial institution or qualified individual reasonably believes exploitation may have occurred, may notify:
    • The Commissioner (Division of Banks) and any relevant adult protective services agency.
  • Notifications must be in writing or on a Commissioner-issued form and include available details (adult’s name/address, caretaker, age, nature/extent of potential injury, and any other pertinent information; additional information may be required by rule).
  • A qualified individual may notify a third party previously designated by the eligible adult, except not to someone suspected of exploitation.

Temporary delay of disbursements/transactions (Sections 5–6)

  • Financial institutions may delay a disbursement or transaction if a qualified individual has reasonable cause to believe it may result in exploitation, after an internal review is initiated.
  • Requirements if delaying:
    • Notify all authorized account parties of the delay within 2 business days, unless a party is believed to be the exploiter.
    • Notify the Commissioner within 2 business days.
    • Continue the internal review and report its results to the Commissioner within 10 business days after the delay began.
    • The Commissioner will keep digital/other records of notices and reports.
  • The delay expires at the sooner of:
    • A determination that the disbursement/transaction will not result in exploitation; or
    • 21 business days after the initial delay.
  • A court may extend the delay or grant other protective relief upon petition by the Commissioner, an adult protective services agency, the financial institution/qualified individual, or another interested party.

Records access (Section 7)

  • Financial institutions or qualified individuals must provide access to or copies of records relevant to suspected or attempted exploitation to the Commissioner, adult protective services, or law enforcement during investigations. This may include historical records.

Status and timeline

  • Introduced: February 27, 2025.
  • Legislative actions: Referred to the Committee on Financial Services (2025-02-27); Senate concurred (2025-02-27).
  • The bill proposes a new statutory framework; enactment would require passage by the Legislature and signature by the Governor.

Potential impact

  • Strengthens protections for vulnerable adults by enabling timely reporting, information sharing, and protective actions.
  • Empowers financial institutions and qualified personnel to intervene through temporary delays while investigating suspected exploitation.
  • Increases collaboration among financial institutions, state regulators (Division of Banks), and adult protective services.
  • Could entail compliance costs for institutions to implement notification protocols, internal reviews, and recordkeeping.

Compiled from official sources — confirm details with the bill’s official record.

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