LANSING – State Rep. Richard E. Hammel (D-Mt. Morris Twp.) today threw his support behind 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.
"It is a sickening fact that too many people take advantage of seniors when they see the opportunity to make money for themselves, and we have to do everything we can to stop that," said Hammel, who was recently named legislator of the year by the Valley Area Agency on Aging. "The crime of elder abuse is increasing as our aging population grows. We need a plan like this to prevent these heartbreaking situations and make sure that people who hurt and exploit our older citizens do not get away with it."
Elder abuse ranges from abandonment and neglect to financial exploitation to emotional, physical or sexual abuse. Caregiver neglect makes up about 20 percent of substantiated reports, according to a report from the National Center on Elder Abuse. Financial exploitation makes up about 15 percent of elder abuse cases.
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.
About 69 percent of adults mistreated in Michigan in 2001 were 60 or older, according to the National Center on Elder Abuse (NCEA). The investigations by Adult Protective Services 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 , 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.
"We need to clear the way for everyone involved in the lives of older adults to intervene on their behalf if needed," Hammel said. "Whether that is a teller at a bank or a neighbor or friend, the more we all work together, the more we can prevent seniors from losing their assets or even losing their lives."