elder abuse on the front lines
TRANSCRIPT
Elder Abuse: On the Front Line
Nora Dowd Eisenhower
Assistant Director, Consumer Financial Protection Bureau
Office for Older Americans
January 20, 2015
26th Annual Conference and Expo
Disclaimer
This presentation is being made by a Consumer Financial
Protection Bureau representative on behalf of the Bureau. It does
not constitute legal interpretation, guidance or advice of the
Bureau.
Note: This document was used in support of a live discussion. As
such, it does not necessarily express the entirety of that discussion
nor the relative emphasis of topics therein.
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Consumer Financial Protection Bureau (CFPB)
Created in Dodd-Frank Wall Street Reform and Consumer
Protection Act; launched July 2011
Mission: make markets for consumer financial products and
services work for Americans — whether they are applying for a
mortgage, choosing among credit cards, or using any number of
other consumer financial products
Core functions: educate, enforce and study
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Our Vision
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A Consumer Finance Marketplace…
where consumers can see prices and risks up front and where they can easily make product comparisons;
in which no one can build a business model around unfair, deceptive, or abusive practices;
that works for American consumers, responsible providers and the economy as a whole.
CFPB Tools/Services for Consumers of All Ages
Ask CFPB
Interactive online tool with answers to many questions regarding financial services and products
Can browse by topics, e.g. “fees” or “closing,” or by populations, like servicemembers, students, and older Americans
Under “older Americans” tag, find answers to questions about financial products and services, powers of attorney, accepting assistance with bill-paying and banking, and tips to avoid financial harm
http://www.consumerfinance.gov/askcfpb/
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CFPB Tools and Services, cont’d
Consumer Complaints
Accepts consumer complaints by phone, mail, fax, and through website
Currently handles complaints about credit cards, credit reports, debt collection, money transfers, mortgages, bank accounts and services, car loans, other consumer loans, and private student loans
CFPB forwards complaint to the company and works to get a response from them
If another government agency would be better able to assist, CFPB forwards the complaint and lets the consumer know
http://www.consumerfinance.gov/complaint/
“Tell your story”
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Complaints we accept now
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As of January 1, 2015, we’ve handled over 500,000 complaints
Office for Older Americans (OA)
Mission: help consumers 62+ to get the financial education and training they need to:
Prevent unfair, deceptive and abusive practices aimed at seniors
Help seniors make sound financial decisions as they age.
The only office in the federal government specifically dedicated to the financial health of seniors
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Office for Older Americans, cont’d
OA is:
developing education initiatives;
conducting research to identify best practices and effective methods, tools, technology and strategies to educate and counsel seniors about personal finance management with a focus on—(1) protecting themselves from unfair, deceptive, and abusive practices, (2) long-term savings, and (3) planning for retirement and long-term care.
coordinating efforts with federal and state regulatory agencies, and law enforcement; and
collaborating with community leaders and local organizations.
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www.consumerfinance.gov/older-americans/
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Background on Elder Financial Exploitation
Definition: Illegal or improper use of an older adult’s funds,
property, or assets.
The most common form of elder abuse—but only a small
fraction of incidents are reported.
Perpetrators include family members, caregivers, scam artists,
financial advisers, home repair contractors, fiduciaries and others.
Attractive targets: significant assets or home equity
Vulnerable due to: isolation, cognitive decline, physical disability,
health problems, recent loss of partner/family member/friend
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OA Initiatives: Managing Someone Else’s Money
PROBLEM:
Declining capacity to handle finances can make older adults vulnerable
People with diminished capacity often need surrogate to handle their money
“Lay fiduciaries” – critical source of help; often have no training; some even commit fraud
CFPB INITIATIVE:
Released a set of guides called Managing Someone Else’s Money
User-friendly “how-to” guides for agents under powers of attorney, guardians, trustees, Social Security representative payees and VA fiduciaries
National guides available free in bulk http://promotions.usa.gov/cfpbpubs.html
Upcoming: state-specific guides for six states: AZ, FL, GA, IL, OR, VA; and a replication manual for other states.
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OA Initiatives: Money Smart for Older Adults
PROBLEM:
Many older Americans, their caregivers, and others in the community don’t know how to spot and avoid frauds and scams.
CFPB INITIATIVE:
The Office developed an awareness program called Money Smart for Older Adults in collaboration with the FDIC.
Content on common issues facing seniors, including how to identify a potential scam or fraud
Materials for trainers to provide presentations on preventing, recognizing, and reporting elder financial exploitation
Participant guides and link to training module at http://www.consumerfinance.gov/older-americans/
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OA Initiatives: Money Smart for Older Adults
CFPB Initiative: Manual for assisted living and nursing facilities
PROBLEM:
Older adults residing in assisted living and nursing facilities are targets of financial abuse
Threats come from
• Trusted persons handling financial affairs
• Stranger scams
• Theft by staff or intruders
Individuals with cognitive impairments are especially at risk
Financial exploitation may place victim at risk of involuntary discharge or loss of housing and services due to nonpayment
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Manual for facilities
Guide to help operators and staff protect residents from financial
exploitation through prevention and early intervention
Target audience: administrators, business office staff, social service
personnel, any staff involved in admissions
Also useful in other residential settings
Users can add information about state laws, regulations, reporting
requirements and systems
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Four pillars of successful intervention
PREVENT – through awareness and training
RECOGNIZE – spot the warning signs and take action
RECORD – document your findings
REPORT – tell the appropriate authorities and trigger responses
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Understanding the laws
STATE LAWS include definitions of financial exploitation,
reporting mandates, criminal sanctions
Adult protective services
• Is the victim eligible for services?
• Does the allegation meet definition of exploitation?
• Investigation – if financial exploitation, what services are necessary?
Law enforcement
• Array of criminal laws
• Specific crime of elder financial exploitation
FEDERAL REPORTING REQUIREMENT : Report suspected
crimes to state survey agencies and local law enforcement (doesn’t
apply to assisted living facilities)
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Warning signs of financial abuse – a few examples
Possessions disappear from a resident’s room or apartment
Resident pressured to make a decision or sign a document “now”
A previously uninvolved person claims authority to manage a
resident’s care and/or finances but does not provide documentation
Unpaid facility bills
Resident’s checkbook or check register shows checks made out to
“cash” frequently or check numbers out of sequence
Frequent or costly gifts to facility staff or volunteers
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Model response protocol
Team approach
Investigate and record as soon as warning signs appear
Advocate for vulnerable resident
Understand reporting requirements
Report: who, what, where, when, how
Follow up
Additional avenues for action
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Prevention through multi-pronged efforts
Staff orientation and training
Facility financial policies and practices
Exploitation or confusion??
Scams that target older people
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Where to find CFPB guides
Link to Money Smart and Managing Someone Else’s Money at http://www.consumerfinance.gov/older-americans/
Link to guide for assisted living and nursing facilities at http://files.consumerfinance.gov/f/201406_cfpb_guide_protecting-residents-from-financial-exploitation.pdf
Get hard copies of all three in bulk http://promotions.usa.gov/cfpbpubs.html#special
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Contact
Nora Dowd Eisenhower
Assistant Director – Office for Older Americans
Consumer Financial Protection Bureau
Join our email list
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