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Consumer Bureau Launches Inquiry
into Financial Abuse of Elderly
Jim
Puzzanghera, The Los Angeles Times
June 14, 2012
Photo Credit: Sarah Coward,
The News Press. Grace Carey, 96,
plays with 14-month-old Gabriel
Thompson while bagging groceries at
the Colonial crossing Publix, in Fort
Myers, Fla.
WASHINGTON
-- Saying that older Americans have been
scammed out of billions of dollars, the
Consumer Financial Protection Bureau on
Thursday launched an inquiry into financial
abuse of the elderly.
"The silent crime of financially
exploiting the elderly is widespread and it
is devastating. It is critical for us to
act," Richard Cordray, the agency's
director, said at a White House forum
Thursday marking World Elder Abuse Awareness
Day. "The generation that rebuilt and
sustained this nation out of a devastating
Depression, the dark hours of World War II,
and the anxious fears of the Cold War
deserve our care now in their turn."
Cordray cited a recent study that
said Americans 60 years of age or older lost
at least $2.9 billion to financial
exploitation in 2010, up 12% from 2008.
As part of the Dodd-Frank financial
reform law that created the agency, Congress
instructed it to specifically focus on
protecting senior citizens. In October,
former Minnesota Atty. Gen. Hubert H. "Skip"
Humphrey III was appointed to head the
agency's Office of Older Americans.
In 2010, Consumers Union said that
older Americans were particularly vulnerable
to being misled on reverse mortgages and
called for more government oversight.
The inquiry seeks comments from the
public on several issues. They include
detailing the types of unfair, deceptive and
abusive practices targeted at the elderly,
how to evaluate the credentials of financial
advisors who counsel them and what types of
resources exist to help with financial
planning.
"Many seniors have routines, and
their predictable patterns make them easier
targets for predators," Cordray said.
"Abusers often assume that the victim will
be too embarrassed or too frail to pursue
legal action against them, and unfortunately
that assumption is too often proven to be
correct."
The agency will be accepting public
comments until Aug. 13.
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