Stopping Senior Financial Abuse
Texas Steps up efforts to stop financial abuse.
The idea of financial abuse may be much different than you expect. Senior citizens and people, young and old with disabilities, are vulnerable to scams and theft of their finances because of their life circumstances. For Texans, the State Legislature has stepped in to help stop the financial exploitation of certain vulnerable adults. With the passage of House Bill 3921, the State of Texas will be helping many of those who cannot help themselves to keep their finances safe.
The Protection of Vulnerable Adults from Financial Exploitation Act gives senior citizens, those with disabilities, and their caregivers a place to turn if they feel they are financially exploited. The first place to turn is the institution that is holding the money or assets in question. Call the bank, insurance agent, or financial planner and let them know the situation. If a financial representative is helping to stop financial abuse, the new law gives them immunity. “An employee who or financial institution that testifies or otherwise participates in a judicial proceeding arising from a notification or report is immune from any civil or criminal liability arising from the notification, report, testimony, or participation in the judicial proceeding, unless the employee or financial institution acted in bad faith or with a malicious purpose.” (Texas Legislature, 2017)
If you suspect a representative of a bank, insurance company, or financial planner as being the source of the problem, you have two choices. You can contact the institution and ask to be connected to their compliance department. If your accounts are through a financial planner, go directly to the brokerage contact. The reason to go to the financial institution compliance department first is that financial fraud happens quickly. Financial assets can be transferred outside of the United States in a matter of moments. Once the money is transferred, it may be a matter of moments before it is out of the reach of United States authorities.
House Bill 3921 gives financial institutions the ability to step in and freeze accounts instantly and even try to recall the transfers if they have already occurred. Once you notify the financial institution, they are required to contact the proper federal and state legal authorities as well as the Texas Department of Family and Protective Services.
The Texas Department of Family and Protective Services would be the second place to turn in the event of financial abuse. Going to Protective services second does not diminish the importance of their involvement but emphasizes that financial institutions may have the ability to stop financial fraud immediately. The financial institution is required to contact the Texas Department of Family and Protective Services as well as other legal authorities. However, in some instances, if the financial institution is the source of the financial fraud contact the Texas Department of Family and Protective Services immediately. Their website is https://www.dfps.state.tx.us/
If you are a relative, a caregiver, or a financial representative of a senior citizen or a disabled person, it is vital for you to know the signs of financial abuse. Regretfully, from time to time, those who are closest to vulnerable people are trying to take advantage of them. A caregiver, or another person that shows an unwarranted interest in the finances or resources of an elderly or disabled person should be a concern. Especially if they do not allow the elderly or disabled person to speak for themselves or do not leave their side during conversations.
For many vulnerable people, it is difficult for them to come to a financial institution’s place of business or even speak over the phone. If the availability of the vulnerable person is a problem, it is the financial institution’s responsibility to insist on speaking to the elderly or disabled person; house calls are not out of the question.
Financial documentation is essential. If a new caregiver, relative or friend begins to request financial transactions without the correct documentation, it is important to see if it is just an oversight or financial fraud. An email request or even written request for changes that seem more significant than usual or out of character should be a reason to question the transactions by phone or in person. A quick conversation can determine if the elderly or disabled person is aware of financial matters. If financial abuse is suspected, financial institutions have been given the ability by House Bill 3921 to pause financial transactions for up to 30 days providing enough time to investigate any questionable circumstances.
References
Texas Legislature. (2017). Protection of vulnerable adults from financial exploitation (HB 3921). Retrieved from Texas Legislature website: http://www.legis.state.tx.us/tlodocs/85R/billtext/pdf/HB03921F.pdf#navpanes=0