LANSING – State Representative Gino H. Polidori (D-Dearborn) today unveiled the Elder Financial Protection Act, a plan that aims to shed light on the reprehensible act of elder abuse by cracking down on criminals who financially exploit seniors for their own gain.
"We must take action to protect our residents from people who prey on seniors to fatten their own wallets, and that's what this plan does," Polidori said. "Our seniors have worked hard their whole lives, and they deserve to enjoy their golden years. We must take action to protect them from being financially exploited by cruel predators."
Elder abuse ranges from abandonment and neglect to financial exploitation to emotional, physical or sexual abuse. Caregiver neglect comprised 20 percent of substantiated reports, according to a report from the National Center on Elder Abuse. Financial exploitation was the culprit in 15 percent of elder abuse cases.
The House Democrats' Elder Financial Protection Act would:
- Make it mandatory for employees of financial institutions to report suspected elder abuse.
- Require financial institutions to provide joint accountholders with a written summary of their rights.
- Prohibit those convicted of elder abuse from inheriting from a victim's estate, and create an Elder Death Review Team to investigate suspicious deaths.
- Allow a third party to file a criminal complaint on behalf of a victim of elder abuse.
- Define financial exploitation as it relates to the Michigan Social Welfare Act.
- Define the rights of those who are incapacitated.
- Require a person who is granted power of attorney on behalf of a senior to sign a contract that details the person's obligations and fiduciary duty to act in the senior's best interest.
Michigan's Adult Protective Services investigated more than 9,300 cases of adult mistreatment in 2001, according to the National Center on Elder Abuse (NCEA). Adults age 60 and older accounted for 69 percent of the victims – an estimated 6,479 seniors. The investigations found that 70 percent of all victims suffered neglect and 15 percent were abused.
A 2004 survey of all 50 states conducted by the NCEA found that women are more likely than men to suffer from elder abuse or neglect, with two out of three elder abuse victims being women. The survey also found that two in five victims were age 80 or older. The same report found that 17 percent of elder abuse cases involved members of the victim's family.
In one case reported in the NCEA's 2004 survey [1], a 93-year-old woman's granddaughter moved into her house with her boyfriend, under the guise of offering caregiver assistance in exchange for free housing. The younger woman convinced her grandmother to add her name to the checking account. A bank teller at the older woman's bank noticed irregular account activity and reported it to Adult Protective Services. An investigation showed that the younger woman had become physically abusive toward her grandmother, pushing her down a flight of stairs. Authorities also learned that she had tried to get her grandmother to sign over the deed to the house.
"Bank tellers often develop relationships with their regular customers, setting them up to be an excellent line of defense against elder abuse," Polidori said. "A drastic change in an elderly customer's spending habits can be a warning sign that something isn't right. Requiring tellers to report such activity may save a senior from losing his or her life savings."