Elderly financial abuse only becoming ‘worse’

Action is now overdue as some banks continue to reportedly “rip off” vulnerable older Australians by automatically transferring their savings to lower-interest accounts when their term deposits expire, National Seniors chief executive, Michael O’Neill, has alleged.

The story, which was first reported by AAP last week, emerges just as new research shows the issue of elderly people being “ripped off” by family members is becoming “worse”.

Mr O’Neill told DPS eNews many elderly people are left “disadvantaged” when the term deposit they signed up for ends, which is then automatically rolled over into lower-paying
accounts.

Particularly unfair to older people who rely on interest for an income, Mr O’Neill urged that financial institutions issue formal instructions to customers as a term deposit is
about to near its end, or alternatively, provide a default account with a higher interest rate.

Australian Bankers Association chief executive, Steven Munchenberg, told AAP greater regulation was unnecessary as he claims most banks contact their customers and inform them their term deposit is “coming up”. He also said families of elderly people needed to be “alert” to ensure “mum or dad [were] getting the best sorts of deals”.

However, Mr O’Neill told DPS eNews it was up to the bank to make sure the “best offer” was provided.

“It depends on the banks, particularly in the term deposit area, when it comes to treating older people fairly; rather than the way many of them are being treated at the moment
by not paying them,” he claimed.

Mr O’Neill says National Seniors is now lobbying groups, including the Treasurer’s office to bring about change. He says if the banks do not comply, he would be “only too happy
to challenge them and maintain the pressure to change regulations”.

Ripped off by own flesh and blood…

Speaking to the ABC last week, Victoria’s State Trustees manager, Steven Cowell, said the incidence of financial abuse by relatives was increasing, as well as the sum of money
taken from the elderly.

Mr Cowell claimed research by Monash University, which was commissioned by State Trustees, showed the most common perpetrators were often sons and daughters of elderly parents; and widowed women over the age of 75 years were the most vulnerable to this type of abuse.

Do you agree with National Seniors, Michael O’Neill, that banks need to provide consumers with ‘best offer’ or is Australian Bankers Association’s, Steven Munchenberg, correct when he claims ‘greater regulation is unnecessary’? Share your thoughts in the comment box below.