Is High-Risk Borrowing a Sign of Elder Financial Abuse?
The stereotypical image of financial abuse of the elderly is when an opportunistic person ingratiates himself or herself to a lonely but financially secure elderly person and takes advantage of the elderly person’s generosity and physical and emotional vulnerability. The abuser might be a paid caregiver who builds a friendly rapport with the elderly person and confides in him about her financial problems, eventually asking for money. It might be someone who lives several time zones away but flirts with the lonely senior online and convinces her to send him money to help with problems that, to someone who isn’t so lonely, would sound far-fetched. Financial abuse can take many other forms besides these, though. It is by far the most common form of elder abuse, and the abuser might be a family member of the targeted senior, or he or she might be a professional caregiver or even a veritable stranger who came into the elderly person’s life solely to take his or her money. Victims of elder abuse may not realize that the abuser is taking their money, or they might know about it but hesitate to tell their families because they fear losing their independence; they might even feel that the financially exploitative friend treats them better than their judgmental relatives do. For help protecting yourself and your loved ones from elder financial abuse, contact a Bronx estate planning lawyer.
Financial Products That Target Vulnerable Seniors
Financial products marketed to low-income consumers tend to be riskier; their interest rates and fees are higher, and the consumers borrow them out of desperation. You can find advertisements for these products where people who are out of the workforce are likely to see them, such as on television during the day; seniors are more likely than younger consumers to see TV ads, since younger people tend to consume digital media instead. Auto title loans with long repayment terms, where borrowers make little progress paying down the principal, are a notorious example. Unscrupulous financial planners might even urge elderly consumers to purchase annuities without warning them about all the risks and penalties.
How to Protect Elderly Relatives From Risky Financial Decisions
If you see an elderly relative acting out of what seems to be financial desperation, you should voice your concern about financial elder abuse. Why is your relative taking early withdrawals from his pension or taking out an auto title loan? The law imposes more severe penalties for financial crimes against seniors than it does financial crimes against working age adults. Your relative’s poor financial decisions might be a symptom of her genuine financial distress, or she might be in the early stages of dementia and might be making risky financial decisions even though, financially, she can afford not to.
Schedule a Confidential Consultation With a Bronx Estate Planning Attorney
An estate planning lawyer can answer your questions about protecting your family from current and future financial abuse. Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.
Source:
ny.gov/tips-preventing-elder-financial-exploitation#:~:text=If%20you%20or%20someone%20you,to%20adults%2018%20and%20older.
