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9/13/2017
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The Consumer Financial Protection Bureau: Protecting adults 62+ in America
September 25, 2017
Agenda
Overview of CFPB
Overview of the Office for Older Americans
What is elder financial exploitation, how to spot it, and what you can do to help
Additional OA Resources
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.
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About the CFPB
The CFPB is an independent federal agency built
to protect consumers. We write and enforce rules
that keep banks and other financial companies
operating fairly. We also educate and empower
consumers, helping them make more informed
choices to achieve their financial goals.
Submitting a complaint
Keep in mind that if there’s a problem with a financial product or service, consumers can submit
a complaint to the CFPB • consumerfinance.gov/complaint • by phone to (855) 411-CFPB (2372) or
(855) 729-CFPB (2372) TTY/TDD
Complaints accepted by the CFPB
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CFPB Office for Older Americans
Learn more about us at
consumerfinance.gov/older-americans
We help older consumers (62+):
Prevent unfair, deceptive
and abusive practices
aimed at them
Make sound financial
decisions as they age
A few characteristics of older adults
Women over age 62 can expect to live 21 more years on average
Men over age 62 can expect to live 17 more years on average
3 out of 5 families with a head of household 65 or older, has no retirement savings
Older adults may be vulnerable to scams due to level of assets and/or cognitive changes
Older adults may be carrying more debt into later life than previous decade
Possible challenges for older adults
Reduced or fixed income
Fewer opportunities for reentry
into workforce
Increased and unknown health
conditions and health-related
expenses
New child-rearing expenses due
to raising grandchildren
Complicated decisions
regarding finances, retirement
benefits, and long-term care
planning
Targeted for scams, fraud, or
other forms of financial
exploitation or abuse
Homeownership – whether to
use the equity in your home
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What is elder financial exploitation?
• Fraudulent or otherwise illegal, unauthorized, or improper act or process of an individual that
uses the resources of an older person for personal benefit, profit or gain
• Actions that result in depriving an older person of rightful access to, or use of benefits,
resources, belongings, or assets
Examples of financial exploitation
Exploitation by
an agent under a
POA or person in
another fiduciary
relationship
Theft of money or
property by family
members,
caregivers, or
in-home helpers
Lottery and
sweepstakes
scams
Investment fraud
and scams
Who is at risk?
Anyone can be the victim of financial exploitation.
Elder financial exploitation crosses all social, educational, and economic boundaries.
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Why are older adults at risk?
Some older adults may:
• Have regular income and accumulated assets
• Be trusting and polite
• Be lonely and socially isolated
• Be reluctant to report exploitation by a family member, caregiver, or someone they depend on
Who could be the abuser?
Could be anyone
• People known to person
Family members and caregivers
Friends, neighbors
Agents under a power of attorney
Financial advisers
• Strangers - Scammers of all types
Why don’t older adults report it?
• Shame and embarrassment
• Loyalty to family member or caregiver
• Fear of retaliation or not being believed
• Fear of being declared incompetent and placed in a nursing home
• Dependence on the abuser
• Denial or self-blame
• Lack of awareness
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How to spot financial abuse
Look out for these common signs
• The person says money or property is missing.
• The person is afraid or seems afraid of a relative, caregiver, or friend.
• The person is reluctant to have visitors or take phone calls.
• You notice sudden changes in the person’s spending or savings.
What you can do to help
Adult Protective Services (APS)
For elder abuse, contact Adult Protective Services.
Find contact information eldercare.gov or
call 1-800-677-1116.
Local Police - 911
If someone is in danger or a crime has been committed, call the police.
Your State Attorney General
Visit naag.org to find yours.
What you can do to help
• Submit scams to the FTC at ftc.gov
• Report mail fraud to the U.S. Postal Inspection Service at uspis.gov.
• Keep in mind that if there’s a problem with a financial product or service, consumers can submit a complaint to the CFPB
• consumerfinance.gov/complaint
• by phone to (855) 411-CFPB (2372) or (855) 729-CFPB (2372) TTY/TDD
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Reverse Mortgage Resources
Considering a Reverse Mortgage?
Some older homeowners consider using their home equity with a reverse mortgage.
Do you know the benefits and risks?
Visit www.consumerfinance.gov/reversemortgage
Consumer Guide: Considering a Reverse Mortgage?
Important questions to ask:
Are the borrowers the only people who live in the home?
Can you afford your living expenses, property taxes, and insurance?
Do you plan to remain in the home for a long time?
Can you wait until you’re older?
Consider alternatives:
Wait (the older a borrower is, the more he or she can borrow)
Refinance your current mortgage
Alternative home equity products might be cheaper
Lower your expenses (consider downsizing to a more affordable home)
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3 things you should do if you have a reverse mortgage
1. Verify who is on the loan
2. If your reverse mortgage is in the name of only one spouse, make a plan for the non-borrowing spouse
3. Talk to your children and heirs – make a plan for any non-borrower family members living in the home
If you have a problem with your reverse mortgage
Submit a complaint to us online or by calling 855-411-2371
Check out Ask CFPB to learn more about reverse mortgages
Download a printer-friendly version of this information
Read our guide about how reverse mortgages work
To help four type of financial caregivers:
Agents under a Power of attorney,
Guardians and conservators,
Trustees,
and Social Security and VA representatives
The guides provide tips on making financial decisions for someone
else as well as protecting assets from fraud and scams.
State-specific guides available for Florida, Illinois, Oregon, and
Virginia (coming soon: Arizona and Georgia)
Available in Spanish
Managing Someone Else’s Money guides
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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
Managing Someone Else’s Money
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
English and Spanish
Available free in bulk http://promotions.usa.gov/cfpbpubs.html
Money Smart for Older Adults curriculum
An awareness program developed in collaboration with the FDIC.
Content on common issues facing seniors, including how to identify a potential scam or fraud and other forms of exploitation
Curriculum for trainers
Resource Guide available in
bulk at no charge
Content updated March 2017
Available in Spanish
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Curricula Format
Money Smart for older adults is a stand-alone instructor-led module that includes:
Instructor Guide
Power Point
Participant Resource Guide (English and Spanish)
The module is available for download from www.fdic.gov/moneysmart and the Participant Guides can be ordered in bulk from www.consumerfinance.gov/older-americans
Consumer Protection Placemats
Placemats are available to order in bulk with tips to help people protect themselves from fraud and scams.
Consumerfinance.gov/placemats
Result of user testing: Game placemats
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Game placemats – word search (reverse)
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Companion toolkit
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Stay informed
Erin Scheithe
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