Financial institutions report widespread elder financial abuse

The CFPB has released a report on financial exploitation of the elderly by people ranging from offshore scammers to family members. The report compiles information from Suspicious Activity Reports submitted by banks, credit unions, casinos, and other financial services providers. The 180,000 elder financial exploitation SARs reviewed for the report were submitted from 2013 to 2017 and involving more than $6 billion. 

The report is here.

0 thoughts on “Financial institutions report widespread elder financial abuse

  1. John Richards says:

    My mother passed away in January at the age of 89 1/2. As Executor, I discovered that the Hyundai which she leased in 2014, was purchased by her at the expiration of that lease in February 2018, at the age of 88 1/2. Hyundai’s lease had a Residual Value of $11,300, which should have been the purchase price on the new Bank of America loan. Instead, the salesman convinced her that the purchase price should be $13,900. That is $2,600 over actual value. On top of that, he convinced her to purchase a $2,500 Warranty. The Woodland Hills Hyundai dealer from which she leased and subsequently purchased the vehicle is out of business.
    She consulted only one of her five children, who told her it was a bad idea to purchase that car in light of her age, and inability to any longer drive on her own. At this point, she was on oxygen tanks 24/7. Mom insisted that she wanted the car so that others (caregivers, etc) could take her shopping or run errands for her. It was seldom used, and she never drove it again.
    Bank of America financed the purchase of this vehicle. The loan officer involved should have noticed that the purchase price was $2,600 over the Residual Value. If he/she did, nothing was said to my mother.
    As of February 2019, the Kelly Bluebook value of this vehicle (2014 Elantra) is between $7,600 and $8,600. I have submitted copies of the Lease and Purchase contracts to the local Bank of America branch manager and to the Estate Unit, to try to reach a Settlement. The Estate Unit, located in Simi Valley, Ca, is stalling and not returning my phone calls.
    I sincerely believe this is a case of Elder Financial Exploitation under the Dodd-Frank Act.

  2. Edwin Bell says:

    This is a major problem in our society that’s growing exponentially. The elderly are easy targets for dishonest corporations and family members. Once an elderly citizen is robbed of their assets recovering is nearly impossible. Let’s hope that decent non-profits, compassionate attorneys, law schools, and Government agencies lead an assault against these perpetrators. It’s time to stop these heinous crimes that leave societies most vulnerable in financial jeopardy.

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