Prof. Prentiss Cox ’90 Quoted in AARP About “Report and Hold” Laws to Help Bank Account Holders

Professor Prentiss Cox ’90 was quoted in AARP about new state laws that allow banks to intervene if their customers are making unusual transactions. At least a dozen states, including Minnesota, have passed what have been called “report and hold” laws that give banks and other financial institutions the ability to temporarily delay an eligible person’s transaction if they believe that the person is being exploited. Prof. Cox noted that the laws allow banks to hold up suspicious transactions, but don’t require it. California passed a report-and-hold law that says that if a financial institution reasonably suspects that financial abuse is involved in a transaction, it could be liable for not pausing it. But Gov. Gavin Newsom vetoed it.