Resources for Financial Caregivers

 May is Older Americans Month 

Financial caregivers are people who manage money for a loved one who may need help because of health problems or memory issues. If you don’t have a financial caregiver lined up, it helps to plan ahead in case you need help in the future. Understanding your options will allow you and your loved ones to choose what works best for your situation. Here are some free CFPB resources to help:

• Considering a financial caregiver? Know your options is a new tool to help you decide whether you or your loved one need an informal caregiver, who helps manage money on an as-needed basis, or a formal caregiver, established by a legal arrangement. The brief guide also walks you through what to consider when choosing a financial caregiver.
• Planning for peace of mind: Social Security Advance Designation explains a new tool from the Social Security Administration that allows you to recommend someone you trust to manage your Social Security benefits if you become unable to do so yourself.
• Planning for diminished capacity and illness helps you understand the potential impact of diminished capacity on your ability to make financial decisions and avoid fraud and other forms of financial abuse. The joint advisory from the Securities and Exchange Commission and CFPB encourages you to plan for possible diminished financial capacity long before it happens.
• Managing Someone Else’s Money guides explain the responsibilities of a financial caregiver, as well as how to spot financial exploitation and avoid scams. The guides are tailored to the needs of people in four different fiduciary roles: power of attorney, guardians, trustees, and government fiduciaries.

Order free print copies of these publications for yourself, and to share with older adults in your community.

 

Did you get your CARES (coronavirus) payment? If not act now!

 The IRS has extended the deadline for individuals to claim their Economic Impact Payment (EIP). The IRS’s Non-Filers tool will be available through November 21, 2020.  

While most people who regularly file a tax return or receive federally administered assistance, like social security, were automatically sent their EIP, several million people have not yet received their payment. Most of these people have no tax filing obligation because they make too little income to file federal taxes.

The Consumer Financial Protection Bureau has created a handful of resources to help:

• Helping Consumers Claim the Economic Impact Payment: A guide for intermediary organizations

Consumer Financial Protection Bureau head more interested in helping corporations than protecting consumers

"Kathy Kraninger gave her first speech as director of the Consumer Financial Protection Bureau (CFPB) at the Bipartisan Policy Center in Washington, D.C., in April. We were alarmed to hear Kraninger voice an overall vision for the CFPB that appeared antithetical to its core function of “enforcing federal consumer financial laws.” Kraninger stated that she was concerned with the CFPBs’ role in creating a “regulatory burden” for the companies under its supervision. She conveyed her intent to focus the Bureau on “prevention of harm” through consumer education, while limiting its powerful examination and enforcement tools to “purposeful” uses.

“Given Director Kraninger’s announced focus on education over consumer protection, consumer advocates are determined to educate the new director about the need for robust Bureau oversight and enforcement to hold financial companies accountable for harmful practices,” Consumer Action’s Deputy Director for National Priorities Ruth Susswein said." Source: Consumer Action
https://www.consumer-action.org/news/articles/consumer-action-insider-may-2019/?eType=EmailBlastContent&eId=c4ee986f-51de-4c8a-a008-0d1eaef48ad2#Topic_08

Consumer Financial Protection Bureau being ravaged by Trump's team

"A report from the minority staff of the Senate banking committee accuses Consumer Financial Protection Bureau acting Director Mick Mulvaney of undermining the bureau's mission and says director nominee Kathy Kraninger may continue to weaken the CFPB. President Donald Trump should consider someone with consumer protection experience to lead the agency, the report says." (Retirement Security SmartBrief, 11/29/18). Read the article by Kate Berry in American Banker:
https://www.americanbanker.com/news/senate-bankings-top-dem-issues-scathing-assessment-of-cfpbs-mulvaney

Trump Administration rolls back student loan protections

Under Mick Mulvaney the Consumer Financial Protection Bureau is stepping back from protecting students from predatory student loans and from for-profit colleges that took advantage of students and saddled them with large student loan debt while providing sub-par education. In May Mulvaney eliminated the "Office of Students and Young Consumers" within the CFPB and terminated enforcement actions against some of the most abusive For-profit colleges. Several senior CFPB officials have resigned in protest over Mulvaney roll-backs of consumer protections.

"Default and delinquency rates on student loans are higher than many observers realize, with new data showing 30% of borrowers struggle to manage their loans five years after repayment begins. The figures have been understated in official statistics because the government traditionally looks only at default rates over the first three years of repayment." (Retirement Security Smartbrief). 

"Federal laws attempting to keep schools accountable are not doing enough to stop loan problems. The law requires that all colleges participating in the student loan program keep their share of borrowers who default below 30 percent for three consecutive years or 40 percent in any single year." Above 30 percent is a “high” default rate. "That’s a low bar."

"Among the group who started repaying in 2012, just 93 of their colleges had high default rates after three years and 15 were at immediate risk of losing access to aid. Two years later, after the Department of Education stopped tracking results, 636 schools had high default rates."

For-profit institutions have excessively high default rates. 

source: The Student Debt Problem Is Worse Than We Imagined The New York Times

By Ben Miller

Mr. Miller is the senior director for postsecondary education at the Center for American Progress. 

So students are suffering while taxpayers lose out on unpaid debts.   

"Seth Frotman, student-loan ombudsman at the Consumer Financial Protection Bureau, has resigned, saying the CFPB is no longer protecting student borrowers. "Instead, you have used the Bureau to serve the wishes of the most powerful financial companies in America," he said in his resignation letter to acting Director Mick Mulvaney.

Trump eviserates the Consumer Financial Protection Bureau

Does anyone remember the 2008 financial crisis? Do you recall the major causes of the global financial meltdown? Egregious behavior by the banks and mortgage lenders! So Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010. In addition to regulating banks and Wall Street, Dodd-Frank established the Consumer Financial Protection Bureau (CFPB). From its inception to April 2017 the CFPB "returned almost $12 billion to 29 million consumers and imposed about $600 million in civil penalties."
Now the Trump White House is trying to destroy the CFPB (mainly because the bill was signed by President Obama) but also because, rather than cleaning up the swamp in D.C. Trump hires former wall Street big guns to run the country.
Trump appointed Mick Mulvaney, White House budget director for a second full-time job as acting director of the Consumer Financial Protection Bureau. Mulvaney sure has the consumer interest at heart. He epitomizes the swamp; he stated that when he was a member of Congress, he would only talk with lobbyists who were donating money to him. Forget lobbyists for consumer and environmental organizations: no money; no access!
Mulvaney is making massive changes to the CFPB according to The Wall Street Journal and other reliable sources. He is following Trump's direction to gut the consumer bureau... and deepen the swamp.

Wells Fargo Bad behavior...once again

According to Ken Sweet, writing for the Associated Press,
"Wells Fargo will pay $1 billion to federal regulators to settle charges tied to misconduct at its mortgage and auto lending business, the latest punishment levied against the banking giant for widespread customer abuses."
The bank "has admitted to a number of abusive practices across multiple parts of its business that duped consumers out of millions of dollars."
If you are still a Wells Fargo customer... WHY? It's time to join your local credit union!

Are you ready for a disaster?

The Consumer Financial Protection Bureau (under attack from Congressional Republicans) is a terrific resource and consumer watchdog. Check out their resources:

Featured topic: Disaster Preparedness and Recovery

When a catastrophe like Hurricane Harvey or Hurricane Irma happens, people's lives can be turned upside down. During these tough times, it may be difficult to know who to trust and where to look for guidance and assistance, as well as what financial steps to take.  Even if your area isn’t affected this time, you may want to help the people you serve to prepare for upcoming catastrophes or just for their peace of mind.  Here are some tools and resources that can help.

1.      Disaster Recovery Resources 

These are a few organizations that can help immediately after a natural disaster:

• The Federal Emergency Management Agency (FEMA) website will help people find up–to-date resources and information.
• The Disaster Assistance Improvement Program (DAIP) can provide disaster survivors with information, support, services, and a way to access and apply for disaster assistance.

2.  Tips for securing homes and finances after a disaster

After the most urgent needs are addressed, people can start thinking about financial obligations and issues, especially if they have experienced damage to their home or property. We have five steps people can take to help secure their home and finances:

·         Contact your insurance company

·         Register for assistance with  www.DisasterAssistance.gov

·         Contact  your mortgage servicer

·         Contact your credit card companies and other lenders

·         Contact your utility companies

To get more details on these tips and other actions people can take to recover from disasters, go to our blog on disaster recovery.

3.   Your Disaster Checklist

The CFPB has a Disaster Checklist to help consumers consolidate the information needed —including account numbers, personal records and financial record— to avoid problems and recover faster after a disaster.

4.  Scams and identity theft

While many people pull together during times of crisis, there is also an increased risk for scams and fraud. The CFPB has tips to avoid scams after a disaster that you can explore here.

5. Upcoming Webinar

Disaster Preparedness and Recovery

Thursday, September 28, 2017

2:00-3:00 pm (Eastern Time)

Join us for a webinar to learn about disaster preparedness from a financial standpoint. On this webinar, we will discuss tools and resources available from the CFPB and other federal agencies to help consumers prepare for and cope with the financial aspects of disasters. 

Step 1:  To join the September 28^th webinar, please go to the following link at the time of the webinar:

https://www.mymeetings.com/nc/join.php?i=PWXW5550531&p=4791947&t=c 

(Note that this webinar link will not be live until the day of the webinar).

Step 2:  Listen to the audio by dialing 888-795-5920 and entering participant passcode 4791947.

(Note:  you must dial in via the conference line.  There is no audio available via Webex.)

Republicans aim to weaken Consumer Watchdog just as Experian data breech affects 143 million Americans!

CFPB in congressional crosshairs, experts say

The Consumer Financial Protection Bureau, created as part of the post-crisis Dodd-Frank Act, will be unable to retain its full power to rein in Wall Street, even if its Democratic director, Richard Cordray, remains in his post, experts say. The Republican-dominated Congress has repeatedly taken aim at the agency's mandate and budget.

Gee! Doesn't this make lots of sense just a Experian revealed that it failed to protect 143 million Americans from having their personal data stolen that will be used for ID theft.  The data breech occurred this summer and it took two months before the problem leaked out to consumers and the news media!

Let's hope that more than a few Republican Congress members are victims of this data breech.

Read details at Reuters: http://www.reuters.com/article/us-usa-finance-consumer/with-or-without-democratic-director-u-s-consumer-watchdog-to-be-weakened-idUSKCN1BO2V8

Got credit card complaints? Call your card issuer!

"The Consumer Financial Protection Bureau received more than 26,000 complaints regarding credit cards last year, with billing the most common reason. But intense competition in the industry means credit card companies can be responsive if cardholders call." Read :

Here’s proof that disputing your credit-card bill could be worth it

http://www.marketwatch.com/story/heres-proof-that-disputing-your-credit-card-bill-could-be-worth-it-2017-04-13
The CFPB is the consumer's best friend in the financial services marketplace yet it is under attack by the Trump administration.  How soon politicians have forgotten the horrors and agony of the 2008 global financial meltdown caused by banks and mortgage lenders. Check out the CFPB's website and learn how the agency, created in the aftermath of the financial disaster, can help you and your family: https://www.consumerfinance.gov/. The CFPB is a "U.S. government agency that makes sure banks, lenders, and other financial companies treat you fairly"

Reverse Mortgage Lenders Fined for Deceptive Advertising

"American Advisors Group, Reverse Mortgage Solutions and Aegean Financial are the latest names to face the wrath of the Consumer Financial Protection Bureau due to deceptive advertisements in reverse mortgage lending. Collectively, the bureau ordered the three reverse mortgage lenders to pay a civil penalty of $790,000."
A reverse mortgage allows homeowners 62 and older to tap the equity in their home and put off repayment until they sell the house and move or die, essentially living off the equity to fund retirement. Federal laws "prohibit misleading claims in mortgage advertising and institutions from engaging in deceptive acts or practices." These three lenders violated federal laws and will pay a very small penalty. With the future of consumer protection legislation in jeopardy under the coming anti-regulation administration, who knows what the future holds for consumer protection.
Details at: http://www.housingwire.com/articles/38699-cfpb-fines-three-reverse-mortgage-lenders-over-deceptive-advertising

Tools for Financial Caregivers

Millions of Americans are managing money or property for a loved one who is unable to pay bills or make financial decisions.  This can be very overwhelming.  But, it’s also a great opportunity to help a loved one and protect them from scams and fraud. The CPBP Office for Older Americans has resources for financial caregivers.

1.  Managing Someone Else's Money Guides

A person named to manage money or property for someone else is called a fiduciary. The CFPB has created guides tailored to the needs of people in different fiduciary capacities: agents under a power of attorney, court-appointed guardians, trustees, and government fiduciaries (Social Security representative payees and VA fiduciaries).

Each guide contains information on the fiduciary’s responsibilities and tips on how to spot financial exploitation and avoid scams. Also, each guide includes a 'Where to go for help’ section with a listing of relevant agencies and service providers.

2.  State-specific guides

Because people’s powers and duties as a fiduciary vary from state to state, we also created state-specific Managing Someone Else’s Money guides. These state guides provide information about the state’s unique laws and practices, as well state-specific resources.  Currently, guides for Virginia and Florida are available, with four more state guides under development (Arizona, Georgia, Illinois and Oregon).

3.  Additional resources for older adults

If you are working with clients who are older Americans, the CPPB has other resources that you may find useful, such the Money Smart for Older Adults – Prevent Financial Exploitation curriculum and participant guide, a fact sheet on choosing a financial adviser, and a fact sheet on understanding reverse mortgages.