The Law Office of Robert W. Murphy has represented seniors to recover money lost in a wide variety of scams and cons, many of which were set-up to purposeful target elderly persons. The law-breaking businesses included car dealers who tricked veterans and widows into buying expensive and unnecessary life and disability insurance which would never provide any benefit to the retired seniors when a claim is made. The practice of “post-claims underwriting” occurs when the disability or life claim is denied as result of a condition known to the dealer before the sale of the credit insurance product.
As an illustrative example, a person who is on social security disability for a chronic and debilitating disease such as diabetes or hypertension would typically not qualify for the insurance product but is sold the coverage anyways. For some dealers the potential easy profit of several thousand dollars is too much to pass up. Unfortunately, for the senior and his/her family, the denial of the claim as a result of the “pre-existing condition” can be financially and emotionally devastating.
Today, the Consumer Financial Protection Bureau (“CFPB”) released a report that found that hundreds of counties around the country have developed coordinated community-based efforts to prevent, detect, and respond to elder financial exploitation. The report also found that a strong collaboration among community stakeholders – like financial institutions, adult protective services, and law enforcement – can be very effective in protecting their older residents from financial exploitation. To help other communities across the country create their own protection partnerships to fight elder financial abuse, today the CFPB also released a resource guide and best practices.