Know your rights: Caregivers and nursing home debt

Helping someone you love to move into a nursing home can be stressful enough. Nursing homes should not try to make you personally responsible for a loved one’s bill as a condition of admission.

• Take a close look at the nursing home contract
• Defend your rights, talk with a lawyer
• Help is available

Ver página en español

 Take a close look at the nursing home contract

Here’s what you should know about your rights, what to look for in the nursing home admissions contract, and where to get help.

• Know your rights. Some nursing home admissions contracts say that a caregiver, family member, or friend must pay the resident’s bill if the resident can’t afford to. This is generally illegal. Under the federal Nursing Home Reform Act, nursing homes can’t ask or require you to use your own money to pay for someone else’s nursing home bill, as a condition of that person’s admission to or continued stay in the nursing home.
• The nursing home can’t make you promise to pay for the resident’s care with your own money. For instance, you may have access to the resident’s money as their power of attorney or legal guardian. But the nursing home can’t make you promise to pay for the resident’s care with your own money.
• Watch out for words such as “responsible party” and “joint and several liability.” Sometimes, contracts have confusing terms that say, on one hand, that you are not personally responsible for paying the resident’s costs of care. Then later, the contract could say that if you don’t make sure the resident’s Medicaid application is complete, accurate, and on time, you are responsible for paying the nursing home’s damages. Or it could say that you and the resident are both “jointly and severally” responsible for the nursing home bills.
• You can refuse to sign a nursing home admissions contract that tries to hold you personally responsible for the resident’s bills.  If the nursing home insists that you sign the contract, you can ask a lawyer to read the admissions contract for violations of the Nursing Home Reform Act. You can also report NHRA violations to your State Nursing Home Survey agency.
   

Defend your rights, talk with a lawyer

When nursing home bills go unpaid, some nursing homes hire debt collectors, including law firms, to demand that caregivers pay for a resident’s unpaid nursing home bills. They may also report the debt to consumer credit reporting companies as your debt, and file lawsuits in court. Debt collectors may even tell the judge that you intentionally misused, hid, or stole the resident’s funds, without any reason for believing that you did. These actions could violate the federal Fair Debt Collection Practices Act.

If you are sued for a loved one’s nursing home debt, contact an attorney immediately.

Help is available

When you’re dealing with a nursing home problem, you don’t have to go it alone. There are experts who can help. Some do this for free or at a low cost.

Find your local long-term care ombudsman

Long-term care ombudsmen help residents and their caregivers resolve nursing home issues. Use this tool to find your local ombudsman  

Get legal help

Lawyers can help you understand your rights, negotiate with a nursing home, and respond to debt collection demands. You may qualify for free legal aid, based on your income.

Contact your local bar association or legal aid.

Report nursing homes

Help federal and state authorities stop illegal nursing home debt collection. You can report Nursing Home Reform Act violations to your State Nursing Home Survey Agency or file a complaint with your State Attorney General  

Submit a complaint

If you are having trouble with a debt collector or a credit reporting company, you can also submit a complaint with the CFPB.

Full Article & Source:
Know your rights: Caregivers and nursing home debt

Elder Financial Fraud Reaches $1.7 BILLION

In February 2019, McKnights’s Senior Living reported, citing a report just released from the Consumer Financial Protection Bureau (CFPB) that financial elder fraud reports had quadrupled since only 2013, reaching $1.7 billion in actual losses or attempted thefts, and those figures were for the year 2017.

The CFPB report is based on suspicious activity reports (SARs) filed with the federal government by banks, brokerage firms, insurance companies, and other financial institutions. It is not only believed that the trend is continuing to rise, but that these reports still only represent a fraction of the elderly financial exploitation.

Although the average loss was just over $34,000, approximately 7% of the reported victims lost over $100,000 each. One-third of the victims involved people over age 80 years old. The largest losses reported involved suspects that were people that the victim already knew either personally or professionally.

The CFPB has published a number of materials to help protect elderly persons from financial abuse including numerous reports and materials, even a financial education placement to remind older adults about financial issues. The CFPB website is a resource for these materials. In addition, you can report elder financial abuse to local law enforcement authorities, as well as federal resources such as the Federal Trade Commission (www.ftc.gov/complaint) or to the Senate Special Committee on Aging at www.aging.senate.gov/fraud-hotline.

According to the National Adult Protective Services Association, only approximately 1 out of every 44 cases of financial abuse even gets reported. Policy makers and regulators are trying to ramp up the focus on financial elder abuse. New legislative efforts at the state and federal level, new proposals by state and federal securities regulators are aimed at helping to prevent financial exploitation of seniors. Insurance companies and broker-dealer firms all seem to acknowledge and agree with the goal of protecting seniors from abusive sales practices when it comes to financial services products. However, the same firms also lobby to prevent real change such as a fiduciary standard, and also voice concern that any material change from the status quo in terms of new regulations will add costs to their business.

The Investment Fraud Lawyers and Annuity Fraud Lawyers at Haselkorn & Thibaut, P.A. can handle these cases nationwide. Please call them today for a free consultation 1-800-856-3352 or visit us at www.investmentfraudlawyers.com. With over 40 years of combined experience, these former bank and broker-dealer attorneys are available now to for you, the investor.

Full Article & Source:
Elder Financial Fraud Reaches $1.7 BILLION

CFPB Faults Banks For Failing To Report Many Suspicions Of Elder Financial Abuse Directly To Law Enforcement

By Ted Knutson 

The Consumer Financial Protection Bureau faulted bank and credit unions today for frequently failing to report suspected cases of elder financial exploitation directly to the authorities. The bureau called the lapse a possible missed opportunity to strengthen prevention and response and issued an advisory urging them to step up reporting.

“More reporting to the relevant law enforcement agencies can increase investigation and prosecution,” said the CFPB in an update to a report on the issue it issued earlier this year.

Banks and credit unions tell police, adult protective services offices or other first responders in fewer than three out 10 times they suspect this kind of harm to seniors.

The agency emphasized robust reporting to adult protective services can increase the likelihood victims will receive appropriate services.

As of April, 26 states and the District of Columbia have mandated the reporting of suspected elder financial exploitation by bankers, credit union employees and other financial professionals.

In addition, since June 2018, the federal Senior Safe Act has attempted to take away the fear of financial institutions and professionals that they could be sued on privacy and other grounds for releasing personal financial information to authorities when they fear seniors may be being harmed. The law does not, however, mandate reporting. 

Full Article & Source:
CFPB Faults Banks For Failing To Report Many Suspicions Of Elder Financial Abuse Directly To Law Enforcement

Power Of Attorney 101

 Perhaps you've heard the phrase "Power of Attorney" on a TV lawyer show, or even from a real lawyer. Ever wonder what it means?

What is Power of Attorney?

A Power of Attorney (POA) is a document granting one person or organization (typically called an agent or attorney-in-fact) the authority to act on the behalf of another person. POAs can be general and broad in scope or limited to specific aspects such as health-care decisions or financial management.

A POA is often used to outline plans in case you become incapacitated and are unable to handle your own affairs. In that case, a POA is called a durable power of attorney since it continues beyond your incapacitation.

It is important that your agent for the POA be a reliable individual whom you can trust. Agents are expected to look out for your best interests and must not abuse the powers that you have given them.

You can revoke your POA at any time by notifying your agent in writing and collecting all the existing copies of the POA. You may also need to notify agencies and financial institutions that the POA has been revoked. Once you have signed a POA, you can continue to make your own decisions until the conditions that trigger the POA happen (such as incapacitation).

An attorney is not necessary to create a POA, but it is usually wise to consult with one. The POA defines the powers that are to be given to the agent and the conditions under which they are valid (such as durability). It is very important to write the POA precisely as per your wishes to ensure that they are carried out properly.

Financial POAs are usually set up for an agent to take care of day-to-day decisions as well as major financial ones in case you are unable to make these decisions for yourself. They could include bill paying, tax obligations, disposition of property and assets, or directing investments.

What You Need to Know About Being Granted Power of Attorney

What if you are on the other end of a POA and named as an agent for another person? Once you assume the POA for another person, you have a fiduciary responsibility to that person to act in his or her best interests. The first item of business is to read the POA and make sure that you fully understand the powers that are being granted to you. The POA document and applicable state laws outline and define your powers.

Note that you are obligated to carry out the directions in the document, even if you believe that one of those directions should be done differently. If you do not think you can carry it out, ask your principal to find another agent. When possible, continue to involve the principal in the financial decisions.

It is extremely important to keep the principal's finances separate from yours and to keep meticulous records to track the principal's finances. As an agent, you must avoid conflicts of interest or even the appearance of such not easy to do when you are the agent for a close friend or relative.

When a principal's government benefits such as Social Security are involved, you will not be able to manage them as the agent without a special appointment by the agency. There may be a separate representative payee for these benefits. Co-agents are not uncommon, and co-agent relationships are sometimes directly spelled out in the POA. Regardless of how co-agents are designated, you are obligated to work with the co-agent to maintain the best interests of the principal.

The Consumer Financial Protection Bureau (CFPB) has more details on your responsibilities and options in case you are asked to become an agent. See their pamphlet, "Managing Someone Else's Money" for more information.

POAs are important, powerful documents that are not to be taken lightly whether you are the principal or the agent. Set up your POA carefully with appropriate legal assistance. If you are named as an agent, make sure you take your POA responsibilities seriously and be diligent in executing them. Treat the principal as you would want to be treated.

Let the free Retirement Planner by MoneyTips help you calculate when you can retire without jeopardizing your lifestyle.

Full Article & Source:
Power Of Attorney 101