STOP Senior Fraud Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9668 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9668

  To authorize financial institutions to delay or refuse transactions
    that may involve the financial exploitation of older adults and
              vulnerable persons, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 14, 2026

    Mr. Davis of North Carolina (for himself and Mr. Nunn of Iowa)
 introduced the following bill; which was referred to the Committee on
                           Financial Services

_______________________________________________________________________

                                 A BILL

  To authorize financial institutions to delay or refuse transactions
    that may involve the financial exploitation of older adults and
              vulnerable persons, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Safeguarding Transactions to Outpace
Predatory Senior Fraud Act'' or the ``STOP Senior Fraud Act''.

SEC. 2. TEMPORARY HOLD ON TRANSACTIONS.

    (a) In General.--A financial institution may refuse or temporarily
delay a disbursement or transaction from an account if the financial
institution reasonably believes that financial exploitation has
occurred, or is being attempted through such transaction or account,
and the account is held by or on behalf of--
            (1) an older adult;
            (2) a vulnerable person; or
            (3) a person who has experienced financial exploitation or
        fraud previously in connection with the account and has
        reported it to the financial institution.
    (b) Duration of Delay.--
            (1) In general.--Any delay of a disbursement or transaction
        conducted under subsection (a) shall last not longer than 55
        days after the date the disbursement or transaction is
        initially requested.
            (2) Extension.--A financial institution may extend a delay
        under subsection (a) until up to 85 days after the date the
        disbursement or transaction is initially requested if the
        financial institution conducts an internal review that finds
        that facts and circumstances support the reasonable belief that
        financial exploitation of the specified adult has occurred, is
        occurring, has been attempted, or will be attempted.
            (3) Termination of delay.--A financial institution may
        terminate a delay imposed on a disbursement or transaction
        under subsection (a) if--
                    (A) the financial institution determines that
                financial exploitation will not take place if the
                transaction occurs; or
                    (B) a Federal court directs the institution to
                release the funds.
    (c) Notice Requirement.--If a financial institution refuses or
delays a disbursement or transaction under subsection (a), such
financial institution shall as soon as practical and without
unreasonable delay after delaying or refusing such disbursement or
transaction--
            (1) notify all parties authorized to transact on the
        account, unless the financial institution reasonably believes
        that these persons have engaged in, are engaging in, have
        attempted to engage in, or will attempt to engage in the
        suspected financial exploitation of the eligible adult;
            (2) notify a trusted contact identified by the owner of the
        account or a third party the financial institution has
        determined is reasonably associated with the holder of the
        account, if available and appropriate and not suspected of the
        fraud, as determined by the financial institution; and
            (3) report the suspected financial exploitation to the
        appropriate State and local protective services, law
        enforcement, and a Federal regulatory authority within two
        business days.
    (d) Employee Training.--Each financial institution shall provide
training to each employee of the financial institution that the
financial institution has reason to expect may handle transactions with
holders of accounts about--
            (1) identifying financial exploitation;
            (2) handling transactions involving older adults and
        vulnerable persons; and
            (3) refusing or delaying transactions under this section.
    (e) Safe Harbor.--A financial institution shall not be liable to
any person--
            (1) for refusing or delaying a disbursement or transaction
        in good faith and in compliance with this section;
            (2) for deciding not to delay, refuse, or prevent a
        transaction in good faith and in compliance with this section;
        or
            (3) for disclosing information to a trusted contact, Adult
        Protective Services or appropriate law enforcement in
        compliance with this section.
    (f) Rulemaking.--The Director of the Bureau of Consumer Financial
Protection may issue such rules as the Director of the Bureau of
Consumer Financial Protection determines appropriate to carry out this
section.
    (g) Rule of Construction.--Nothing in this section may be construed
to preempt any requirement of any State or local law or regulation that
is more protective of older adults, vulnerable persons or persons who
have experienced financial exploitation or fraud.
    (h) Definitions.--In this section:
            (1) The term ``vulnerable person'' means--
                    (A) a person with a physical or mental impairment
                that substantially limits or restricts the person's
                ability to provide for their own care or protection; or
                    (B) a person who has a developmental disability.
            (2) The term ``financial exploitation'' means--
                    (A) the wrongful or unauthorized taking,
                withholding, appropriation, or use of the money,
                assets, or other property or the identifying
                information of a vulnerable person or senior adult by
                any person; or
                    (B) an act to obtain control, through deception,
                intimidation, fraud, or undue influence, over the
                money, assets, or other property of a vulnerable person
                or senior adult to deprive such person of the
                ownership, use, benefit, or possession of the property.
            (3) The term ``financial institution'' has the meaning
        given the term in section 803 of the Dodd-Frank Wall Street
        Reform and Consumer Protection Act.
            (4) The term ``older adult'' means an individual who is 62
        years of age or older.
            (5) The term ``trusted contact'' means a person designated,
        in writing, by the holder of an account at a financial
        institution, who may be contacted if there is a concern about
        activity in account of the person.
    (i) Effective Date.--This section shall take effect 180 days after
the date of the enactment of this section.
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