LB 838 adds another option: the authorized contact. An authorized contact is an adult designated by a vulnerable adult or senior adult to be contacted in the event of an emergency, loss of contact with the customer or suspected financial exploitation. Authorized contact programs are optional, and a financial institution is immune from liability for choosing not to implement one. If a bank does implement a program and acts reasonably, the bank is protected. The law also provides that a financial institution is not liable for the actions of an authorized contact and may decline to interact with one if the contact may be involved in exploitation or if interaction is not in the customer’s best interests. This flexibility is critical. In some cases, a trusted contact may be the fastest way to interrupt a scam. In others, the person closest to the customer may be part of the problem. Nebraska law gives banks room to use judgment. Immunity, Safe Harbors and Privacy Considerations Bankers have long been concerned that acting too quickly could create liability, while failing to act could allow devastating customer losses. Nebraska’s elder financial abuse law addresses that concern directly. A financial institution, its bank holding company, and its employees, agents, officers and directors are immune from civil, criminal or administrative liability for delaying or refusing a transaction, or for choosing not to delay or refuse a transaction, under the law. The law also includes important safe harbors. A refusal to engage in a transaction under the elder abuse law does not constitute wrongful dishonor under Nebraska’s Uniform Commercial Code. A reasonable belief that payment of a check will facilitate financial exploitation also constitutes reasonable grounds to doubt collectability for purposes of federal funds availability laws and Regulation CC, as referenced in the Nebraska statute. Privacy concerns are addressed as well. The Gramm-Leach-Bliley Act and Regulation P contain exceptions that allow disclosures to protect against or prevent actual or potential fraud, unauthorized transactions, claims or liability, and to comply with federal, state or local legal requirements. A Practical Call to Action for Nebraska Banks The best fraud prevention tool is still a well-trained banker who knows the customer, recognizes a red flag and understands how to escalate concerns. Regardless of bank size or bank employee scope of duties, the message is the same: Nebraska law gives you tools to act when something does not look right. Banks should consider written procedures for transaction holds, third-party notification, authorized contacts, escalation, documentation and referrals to law enforcement and Adult Protective Services. The law does not require every financial institution to build the same program, but every institution should understand the authority it has and the protections available when staff act reasonably and in good faith. Nebraska bankers have always been more than transaction processors. They are trusted advisers, community leaders and often the first people to see when a customer is being targeted. LB 909 and LB 838 give banks additional tools, but it will be the judgment, training and commitment of Nebraska bankers that turn those tools into real protection. When a red flag appears, Nebraska banks now have more than concern. They have authority, discretion and legal protection to help stop exploitation before a lifetime of savings disappears. Current and past NBA leadership recognize Sen. Mike Jacobson (North Platte) on behalf of the Fraud Free Nebraska Coalition for championing legislation to protect senior adults from fraud. Left to right: NBA General Counsel Ryan McIntosh, NBA Past Chair Mark Linville (Homestead Bank, Randolph), Nebraska Sen. Jacobson and NBA President & CEO Richard Baier 10 NEBRASKA BANKER
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