West Virginia Senate Bill SB848

West Virginia 2025 Regular Session

• Introduced: 3/20/25
• Refer: 3/20/25
• Engrossed: 4/1/25
• Refer: 4/2/25

Caption

Enacting bank protections for eligible adults from financial exploitation

Summary

SB 848 creates a new article in West Virginia banking law to protect “eligible adults” from financial exploitation. The bill defines eligible adults primarily as people age 65 or older, and also includes certain adults with substantial mental or functional impairments or under guardianship/conservatorship. It authorizes depository institutions, broker-dealers, and investment advisers to take protective steps when they suspect exploitation, including notifying state agencies, contacting associated third parties, and temporarily delaying, refusing, or blocking certain transactions, withdrawals, transfers, account changes, or beneficiary changes. The bill also establishes procedures and limits around those interventions. Financial firms may disclose limited information to designated state agencies and, in some cases, to associated third parties, and those disclosures are exempt from state privacy restrictions. Any delay authority generally expires after 15 business days unless the institution is satisfied the risk has passed or a court orders release of the funds. The bill further states that refusing a transaction under the article is not wrongful dishonor or a violation of funds-transfer rules, and it bars private lawsuits against covered institutions and employees unless there is clear and convincing evidence they failed to act in good faith.

Impact

The bill would add a new chapter article to the West Virginia Code governing how banks and certain financial professionals respond to suspected elder financial abuse. It expands the legal authority of depository institutions, broker-dealers, and investment advisers to intervene in customer-directed transactions, while also creating reporting and disclosure pathways to the West Virginia Department of Human Services’ Bureau for Social Services and the Attorney General. It also modifies the practical application of existing banking and funds-transfer laws by expressly shielding good-faith protective holds and refusals from being treated as wrongful dishonor or other statutory violations.

Sentiment

The available voting history suggests strong bipartisan support and little visible opposition: the Senate passed the bill 31-0. The bill’s purpose is framed as protective and preventive, aiming to help vulnerable adults keep access to their funds while reducing the risk of fraud, coercion, and undue influence. No committee transcript was provided, but the unanimous vote indicates the measure was generally viewed favorably.

Contention

The main policy tension in the bill is between protecting vulnerable adults and preserving customer autonomy and timely access to funds. Financial institutions are given discretion, but not a mandate, to delay or refuse transactions, which reflects concern about overreach and the need to avoid interfering with legitimate customer instructions. Another potential point of concern is privacy, since the bill authorizes disclosures to third parties and state agencies and exempts those disclosures from state privacy laws. The bill also limits liability protections to good-faith conduct, suggesting lawmakers were attentive to balancing abuse prevention with safeguards against improper intervention.