It could be someone you love – mother… father… uncle…aunt… grandparent. At some point it could even be you. We’re not talking about physical health failure or mental deterioration. The plain truth is each or all of these persons may be targeted by con artists and white-collar criminals, especially as they become older.
Credit unions have proven more to members than just a financial institution. They have become financial advisor, lifestyle counselor and in many cases advocate, seeking to protect them (members) from forces that would negatively impact those individuals, financially and personally.
As an advocate, sometimes credit unions feel compelled to involve themselves in the lives of their members who may be making reckless or unsafe decisions. With this in mind, credit union management has begun to face a very tough dilemma: Where does our responsibility end with regard to stopping a member from making a potentially bad or ill-conceived decision? There are numerous constructive avenues to resolve this issue, however, in each case, caution must be exercised in the approach.
Personal counseling has proven to be one of the most successful long-standing methods in influencing a member’s decision. There are a few important items to avoid when attempting to work with any member to prevent exploitation by unscrupulous individuals:
Suzanne Yashewski, Cornerstone Credit Union League Senior Vice President Regulatory, Compliance, advises, “The law requires any person who believes that an elderly or adult with disabilities is being abused, neglected or exploited to report the circumstance to the Texas Department of Family and Protective Services (DFPS) Statewide Intake or to the Department of Aging and Disability services (licensed homes/institutions).
Although the credit union may want to protect the member, the credit union must be cognizant of privacy laws and regulations. Therefore, the credit union should contact legal counsel before discussing accounts and transactions with family members of an elderly member.“
Yashewski adds, “Elder abuse through powers of attorney is growing; at this point in time, financial institutions are not required to honor a power of attorney, so the credit union may refuse to accept a POA if they suspect the agent is taking advantage of the principal.”
Ultimately, management must make the final decision when attempting to advise a member of potential fraud situations or scams. Protecting both members and the credit union against these abuses and crimes can best be handled through:
By
, AVP Shared Compliance, Credit Union Resources, Inc.