LANSING – State Representatives Mark Meadows (D-East Lansing) and Joan Bauer (D-Lansing) 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.
"As people get older, they often have to rely on others to help them out with their finances, which can leave them open to being victimized," said Meadows, a lead sponsor of the package. "Elder abuse is a sad reality – seniors can't always rely on family members and caregivers to do what's best for them. We must take action to protect our seniors."
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, which stems from the Governor's Task Force on Elder Abuse, 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 duties to act in the senior's best interest.
"For most of us, it's impossible to imagine having our parents or grandparents being victims of abuse," said Bauer, also a lead sponsor of the package. "Unfortunately, these sad cases are all too common. We need to do all we can to protect our most vulnerable citizens from unscrupulous predators who exploit and abuse our seniors, and this package will give us the tools to do that."
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.