Oregon Bill Changes Credit Union Compliance Measures for the Treatment of ‘Vulnerable Persons’
March 22, 2012
March 22, 2012
The state of Oregon recently passed House Bill 4084, which modifies the way crimes against vulnerable persons are treated.
Under section 19(3) of H.B. 4084, the definition of “vulnerable persons” includes children, elderly persons and persons with disabilities. However, the most likely group of individuals to be affected by this bill credit union members age 65 or older, as well as those who have allegedly committed crimes against a vulnerable person. In order to protect vulnerable persons, credit unions in Oregon will be subject to a new regulatory standard relating to the disclosure of financial information about those involved in an alleged abuse involving a vulnerable person.
Previously, credit unions subject to court summons or subpoena were protected from certain disclosures under ORS 192.596. However, the new disclosure standard under section 10 of HB 4084 requires a credit union to disclose and provide copies of the financial records of a person who is the alleged victim in an investigation of abuse of a vulnerable person. This disclosure must be made in accordance with a subpoena issued by a court or on behalf of a grand jury.
Any financial records may be subpoenaed under H.B. 4084 when they pertain to an account, loan or other financial relationship owned, held or maintained by a person who is the alleged victim in an abuse investigation together with one or more other persons who are not alleged victims in the abuse investigation. This disclosure may be done with or without the consent of the alleged victim (including their caretakers, fiduciaries and legal representatives) or the alleged perpetrator in the abuse investigation.
In order to be in compliance, a credit union must disclose copies of financial records under section 10 of H.B. 4084 within a reasonable period of time that cannot exceed five days from the date the subpoena was received. When the credit union complies with the request, the credit union will not be liable to any person for any loss, damage or injury arising out of or in any way pertaining to the disclosure and provision of the copies.
Any credit union that discloses subpoenaed financial information in accordance with H.B. 4084 may also be reimbursed for costs incurred by the disclosure as provided in ORS 192.602.
For more information about H.B. 4084 and financial disclosure requirements regarding “vulnerable persons,” contact Dexter Johnson, legislative counsel for the state of Oregon, at 503.373.1243, or the Northwest Credit Union Association (NWCUA) compliance department at 800.546.4465.
Questions? Contact the Compliance Hotline: 1.800.546.4465, firstname.lastname@example.org.