WV Enacts Provisions Regarding Depository Institution Protections from Customer Financial Exploitation

West Virginia recently enacted a new law entitled “Banking and Financial Services Provider Protections for Eligible Adults from Financial Exploitation.”  The new law is aimed at shielding depositories from liability for when they stop suspected financial abuse of eligible adults.

Depositories may now delay or refuse suspicious transactions, block withdrawals, disbursements, and transfers, freeze account changes, and refuse to comply with powers of attorney if the depository has reason to believe financial exploitation of an eligible adult may have occurred, has been attempted, or is occurring.  The new law also requires, upon the above occurrence, that the depository promptly notify the West Virginia Department of Human Services Bureau for Social Services and the West Virginia Attorney General.

The new protections provide legal immunity from civil, criminal, and administrative liability to the depositories when they act in good faith.  Actions taken under the new protections generally expire after 15 business days unless extended by an ongoing state investigation and the depository is required to keep internal records of its actions. 

The new law will take effect June 12, 2026.