We have been asked to explain the reason why some financial institutions ask for the name of a person that is often referred to as a “trusted contact.” There is frequently confusion about what rights that person has, specifically if they have access to any account their name is provided for.
The simple answer is, they do not. Most often, the request for you to name a trusted individual is to have someone that can be contacted if the financial institution suspects financial exploitation, scamming, or fraud and/or the financial institution has trouble communicating with you about your account. The reason you must provide the name is that financial institutions won’t speak with anyone about your situation unless that person has a legal right to know (i.e., they are also named on the account) or you have given permission.
Call us if you have any questions or would like to discuss how to choose a trusted contact. We’re always here to help.