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HR 10242

Janie Wynn Protecting Elders from Financial Exploitation Act

119th Congress Introduced by Clay Higgins

Requires CFPB final rule within 180 days to protect seniors from exploitation by mandating activation-based fraud alerts for pre-approved cards, rapid fraud detection, and optional

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 10242

Overview

  • Bill: HR 10242
  • Session: 119th Congress, 2nd Session
  • Title: Janie Wynn Protecting Elders from Financial Exploitation Act
  • Purpose: Require the Director of the Consumer Financial Protection Bureau (CFPB) to issue a final rule governing fraud alerts and related protections for seniors when pre-approved credit cards are issued, and to improve detection and notification of potential financial exploitation by financial institutions.

What the bill does

Main objective

  • Mandates the CFPB to issue a final rule within 180 days of enactment that enhances protections against senior financial exploitation in the context of pre-approved credit cards.

Key provisions

  1. Fraud alerts for pre-approved cards

    • For any card issuer that issues a pre-approved credit card to a senior citizen:
      • Upon activation, the issuer must provide a fraud alert to:
      • The cardholder
      • An additional individual chosen by the cardholder who is at least 25 years old (unless the cardholder waives this requirement as allowed by the statute)
      • Eligible individuals to be alerted can include a relative or spouse, or someone who has explained their relationship to the cardholder to the issuer.

  2. Training and rapid notifications for fraud indicators

    • Depository institutions and credit unions must train employees who perform fraud-detection services to identify activities indicative of senior exploitation.
    • Institutions must notify a senior account holder within 24 hours of detecting any qualifying activity, including but not limited to:
      • Irregular ATM use, card use, online banking, or wire transfers
      • Irregular cash withdrawals
      • Irregular credit card charges
      • Gaps in deposits or activity in previously inactive accounts
      • Addition of an authorized user or change of address
      • Inability to cover a payment due to insufficient funds
      • Requests to increase credit limits
      • Large purchases of gift cards or prepaid debit cards (aggregate > $100)
      • Unusual electronic payments to recipients with no prior history
      • Gaps in check numbers for cashed checks

  3. Waiver option (exception)

    • The rule can allow a waiver for the notification requirement to a designated third party if:
      • The cardholder signs a waiver acknowledging increased risk of exploitation, and
      • The issuer retains a copy of the waiver for at least five years after the card is deactivated.

Definitions (as used in the bill)

  • Cardholder, Card Issuer: As defined in section 103 of the Truth in Lending Act.
  • Depository Institution: As defined in the Federal Deposit Insurance Act.
  • Exploitation, Senior Citizen: As defined in the Economic Growth, Regulatory Relief, and Consumer Protection Act.
  • Fraud Alert: A notice about suspected fraudulent activity, delivered by phone, email, or text, with details to alert the individual and information on how to contact the issuer.
  • Pre-approved Credit Card: A card offered based on the issuer’s determination that the individual likely meets qualifications for approval.

Who is affected

  • Card issuers that issue pre-approved credit cards to seniors.
  • Depository institutions (banks) and credit unions that perform fraud-detection services for senior accounts.
  • Senior citizens who hold accounts with these issuers.
  • Potentially, any individuals designated by seniors to receive fraud alerts (subject to waiver provisions).

Procedural and timeline aspects

  • Enactment timeline: The CFPB must issue the final rule within 180 days after enactment.
  • Implementation scope: Applies to pre-approved credit cards issued to seniors; requires activation-associated fraud alerts and comprehensive fraud-detection training and rapid notification practices.
  • Recordkeeping: Waiver provisions require retention of waiver documents for at least five years after card deactivation.

Potential impacts

  • Increased protections for seniors against financial exploitation by ensuring timely fraud alerts and rapid response to suspicious activity.
  • Enhanced involvement of trusted individuals in monitoring seniors’ credit activity (with optional waivers).
  • Greater responsibility on financial institutions to train staff and establish rapid notification protocols.
  • Possible compliance costs for issuers and institutions to implement alert systems, training, and recordkeeping; potential administrative burden but with intended risk mitigation for elder financial abuse.

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

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