Purpose

Create a Trusted Contact Program to help prevent and respond to financial exploitation and fraud against customers of financial services providers in Minnesota. The bill also sets how such a program would operate and adds protections for providers and trusted contacts.

What a trusted contact is

• A trusted contact is a person 18 years or older whom a customer designates to be contacted by the financial services provider in emergencies, when the provider cannot reach the customer, or when there is suspected third-party fraud or financial exploitation targeting the customer.

How the program works (Main provisions)

• Optional program: A financial services provider may offer a trusted contact program, but it is not mandatory.
• Designation: Customers may name one or more trusted contacts.
• When contact may be made: The provider may contact the trusted person if the customer is not responsive, in an urgent matter or emergency where the customer cannot be located, if there is suspected fraud or financial exploitation, or if the account is dormant and status needs verification.
• Provider rules: The provider may establish procedures, requirements, and forms to implement the program.
• Termination or withdrawal: A customer can terminate a trusted contact’s status at any time, and a trusted contact can withdraw at any time. The provider may require documentation to complete termination or withdrawal.
• Account security features: The provider may offer security options such as setting transaction limits and giving limited access for trusted contacts to view account activity.
• Fraud reporting: The provider may report suspected fraudulent activity or financial exploitation to federal, state, county, or local law enforcement or appropriate public protective agencies.

Liability protections and safety measures (significant changes)

• Providers’ liability: Financial services providers are not liable for a trusted contact’s actions; they are not civilly liable for deciding whether to interact with a trusted contact if they reasonably believe it isn’t in the customer’s best interests.
• Reporting and administration: Providers are not civilly liable for actions related to reporting or administering the trusted contact program.
• Trusted contact liability: A trusted contact that acts in good faith and with reasonable care is immune from liability.
• Overrides to other laws: The bill uses language that puts these protections above other laws to allow the program to operate as described.

Overall impact and intent

• The bill aims to reduce the risk of financial abuse and fraudulent activity against customers by giving them a way to involve trusted contacts, while giving financial services providers clear procedures and broad protections when implementing and running the program.

Notable considerations

• The program is voluntary for customers and providers, and it includes safeguards around termination, withdrawal, and verification to protect privacy and interests.

Relevant terms trusted contact; financial services provider; suspected fraudulent activity; financial exploitation; emergency; non-responsive; urgent matter; dormant account; account security features; transaction limits; view account activity; termination; withdrawal; good faith; reasonable care; civil liability; immunity; law enforcement reporting.