What Can a Trusted Contact Do?

A trusted contact is a person you authorize your financial institution to contact if they cannot reach you. This could be due to concerns about potential financial exploitation, fraud, or a health crisis. Here are some key roles a trusted contact can play:

• Confirm your contact information: If your financial institution cannot reach you, your trusted contact can provide updated information.
• Provide a new point of contact: If someone has been appointed as your guardian or has financial power of attorney, your trusted contact can inform your financial institution.
• Confirm your health status: If you are experiencing a health crisis, your trusted contact can keep your financial institution informed.

It is important to note that a trusted contact cannot access your account information or make transactions. For that, you would need to grant them financial power of attorney.

What Is the Benefit of Adding a Trusted Contact?

Adding a trusted contact provides your financial institution with a way to verify whether you have freely chosen to make certain financial transactions that might raise suspicions of fraud or exploitation. Here are some scenarios where a trusted contact can be beneficial:

• You are not responding to emails or phone calls.
• You forgot to update your contact information.
• You are traveling or have been hospitalized and are unreachable.
• Your financial institution suspects you are being exploited.

Having a trusted contact can help protect you and your money from fraud and exploitation by providing your financial institution with a reliable way to reach you or understand your current situation.

How Do I Choose a Trusted Contact Person?

Choosing a trusted contact person is a crucial decision. Here are some tips to help you select the right person:

• Choose someone you trust and stay in touch with regularly.
• Consider selecting someone who does not have access to your accounts.
• Typical candidates include an adult child, friend, neighbor, or attorney.
• Ensure the person is at least 18 years old and will act in your best interest.

It is also a good idea to have more than one trusted contact listed to ensure there is always someone available to assist if needed.

How Many Trusted Contacts Should I Have?

You can name as many trusted contacts as your financial institution allows. The Consumer Financial Protection Bureau (CFPB) suggests naming multiple trusted contacts in case one of them is involved in suspicious account activity or is otherwise unavailable. This helps ensure you have a reliable point of contact at all times.

How Do I Set up a Trusted Contact Person?

Setting up a trusted contact person is a straightforward process. Here are the steps you can follow:

• Log in to your financial account and look for the option to name a trusted contact person.
• Provide the full name, street address, and phone number or email address of your trusted contact.
• If you cannot find this option online, call your financial institution and ask how to set it up.
• Be cautious of emails asking you to set up a trusted contact person. Ensure the email is from your financial institution before clicking on any links.

Do I Have to Set Up a Trusted Contact Person?

While you are not required to set up a trusted contact person, it is a smart move to help protect yourself from financial exploitation. Brokerages are required to ask if you’d like to set up a trusted contact, but banks and credit unions are not. However, many financial institutions offer this option to help safeguard your assets.

The Bottom Line

Having a trusted contact person is a proactive step to protect your financial well-being. In case of unexpected and atypical activity in your financial account, or if you are affected by a natural disaster or medical emergency, your financial institution can reach out to your trusted contact to verify the legitimacy of transactions and ensure your safety.

At O1ne Mortgage, we understand the importance of safeguarding your financial future. If you have any mortgage service needs or questions, don’t hesitate to call us at 213-732-3074. Our team of experts is here to assist you every step of the way.