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HF 4502

Trusted contact program established to mitigate financial exploitation and fraud, and liability limited.

2025-2026 Regular Session Introduced by Greg Davids and 3 co-sponsors

Minnesota bill establishes trusted contact program allowing financial institutions to verify customers with designated contacts to prevent fraud, with liability protections for good-faith actions.

Effective date 08/01/2026
#banksandfinancialinstitutions
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WeVote Research Nonpartisan
Bill Summary · HF 4502

Legislative bill overview

HF 4502 establishes a "trusted contact program" in Minnesota that allows financial institutions to designate and communicate with authorized individuals to help prevent financial exploitation and fraud targeting their customers. The bill also provides liability protections for institutions that act in good faith under this program.

Why is this important

Financial exploitation of vulnerable populations—particularly seniors—costs victims billions annually. By creating a formal mechanism for institutions to verify customer wishes through trusted contacts, the bill aims to catch fraudulent transactions and unauthorized account access before significant harm occurs. However, the liability protections could create gaps if institutions fail to act responsibly.

Potential points of contention

  • Privacy concerns: Customers may worry about financial institutions sharing information with third parties, even designated ones, or may not understand what information can be disclosed
  • Liability shield scope: Protections that are too broad could discourage institutions from implementing the program rigorously or investigating suspicious activity thoroughly
  • Access and equity: The program's effectiveness depends on customers having trusted contacts available and understanding how to enroll—potentially disadvantaging isolated individuals or those without family support systems

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

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