[Federal Register Volume 77, Number 118 (Tuesday, June 19, 2012)]
[Notices]
[Pages 36491-36492]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-14854]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

[Docket CFPB-2012-0018]


Request for Information Regarding Senior Financial Exploitation

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Request for Information.

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SUMMARY: Section 1013(g)(1) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act of 2010 (``Dodd-Frank Act'') requires the 
Bureau of Consumer Financial Protection (``Bureau'' or ``CFPB'') to 
facilitate the financial literacy of individuals aged 62 or older 
(``seniors''), on protection from unfair, deceptive, and abusive 
practices and on current and future financial choices, including 
through dissemination of materials on such topics.
    In furtherance of this mandate, the CFPB's Office for the Financial 
Protection of Older Americans (``Office for Older Americans'') seeks 
information on consumer financial products and services, financial 
literacy efforts, and fraudulent or deceptive practices impacting the 
lives of older Americans and their families.

DATES: Comment Due Date: August 20, 2012.

ADDRESSES: You may submit comments, identified by Docket No. CFPB-2012-
0018, by any of the following methods:
     http://www.regulations.gov. Follow the instructions for 
submitting comments.
     Mail/Hand Delivery/Courier: Monica Jackson, Office of the 
Executive Secretary, Consumer Financial Protection Bureau, 1700 G 
Street NW., Washington, DC 20552.
    Instructions: The CFPB encourages the early submission of comments. 
All submissions must include the document title and docket number. 
Please note the number of the question to which you are responding at 
the top of each response (respondents need not answer each question). 
In general, all comments received will be posted without change to 
http://www.regulations.gov. In addition, comments will be available for 
public inspection and copying at 1700 G Street NW., Washington, DC 
20552, on official business days between the hours of 10:00 a.m. and 
5:00 p.m. Eastern Time. You can make an appointment to inspect the 
documents by telephoning 202-435-7275. All comments, including 
attachments and other supporting materials, will become part of the 
public record and subject to public disclosure. Sensitive personal 
information such as account numbers or Social Security numbers should 
not be included. Comments will not be edited to remove any identifying 
or contact information.

FOR FURTHER INFORMATION CONTACT: For general inquiries, submission 
process questions or any additional information, please call Monica 
Jackson at 202-435-7275. For specific questions on senior financial 
exploitation, please call James Miner at 202-435-7953.

SUPPLEMENTARY INFORMATION: In support of its statutory mandates under 
Section 1013(g)(1) and (3) of the Dodd-Frank Act, the Office for Older 
Americans will monitor certifications or designations of financial 
advisors who serve seniors and alert the SEC and state regulators of 
certifications or designations that are identified as unfair, deceptive 
or abusive. The Office for Older Americans will also make legislative 
and regulatory recommendations to Congress on best practices for 
disseminating information to seniors regarding the legitimacy of 
certifications and designations, and methods through which a senior can 
identify the financial advisor most appropriate for the senior's needs.
    Pursuant to Section 1013(g)(3)(D), the Office for Older Americans 
is also conducting research to identify best practices for educating 
seniors on personal finance management. The office for Older Americans 
intends to use this research to develop goals for programs that provide 
financial literacy and counseling to seniors.
    The Bureau is therefore seeking comments in response to the 
questions posed below. The questions are grouped into the following 
categories: (a) Evaluation of senior financial advisor certifications 
and designations; (b) providing financial advice and planning 
information to seniors; (c) senior certification and designation 
information sources; (d) financial literacy efforts; and (e) financial 
exploitation of older Americans, including veterans of the Armed 
Forces. Please feel free to respond to any or all of the questions but 
please be sure to indicate in your comments on which questions you are 
commenting.
    Please note that the Bureau is not soliciting individual borrower 
complaints in response to this Notice and Request for Information. Nor 
is the Bureau seeking personally identifying information regarding 
borrower complaints, from the parties to the complaint or any third 
party. Responses to this subsection should not contain account numbers, 
Social Security numbers or other personal information that could be 
used to identify the complainant or another party identified in a 
complaint, or in any way otherwise reveal personally identifiable 
information.

Evaluation of Senior Financial Advisor Certifications and Designations

    1. What resources do seniors have for determining the legitimacy, 
value, and

[[Page 36492]]

authenticity of credentials held by their financial advisors and 
planners? What sources have been found most helpful, accurate, and 
thorough? Among other things, comments could address issues such as 
state or organizational level review standards, evaluation practices, 
or selection criteria to determine the validity of proposed senior 
certifications or designations.
    2. How effective are the existing sources at maintaining the 
legitimacy, value, and authenticity of credentials held by senior 
financial advisors and planners?
    3. How effectively do existing accountability controls deter the 
misuse of senior advisor credentials? Examples of accountability 
controls include revoking credentials, public notices of disapproval, 
or other disciplinary actions.

Providing Financial Advice and Planning Information to Seniors

    4. What resources are available to explain the subject matter 
expertise presented or implied by specific certifications and 
designations? How effective are the publicly available sources at 
disseminating thorough, up-to-date information? How effectively are 
seniors able to use the available resources to select a financial 
advisor with appropriate knowledge to address their specific financial 
needs?

Senior Certification and Designation Information Sources

    5. What sources of information on the fraudulent or misleading uses 
of senior certifications and designations are available? Comments could 
include, among other things, references to publicly available research 
or data sets, suggestions for other potentially available research or 
data, or other information on enforcement, civil, administrative, or 
criminal cases.

Financial Literacy Efforts

    6. What financial education, counseling, or personal finance 
management programs are tailored to the unique financial needs of older 
Americans and their families or caregivers? Among these programs, what 
are the best practices in providing seniors financial literacy and 
robust, practical information on personal finance management? Possible 
comments could address methods for improving recognition of unfair or 
deceptive financial practices; means for helping seniors plan for 
retirement, long-term care, and economic security; or approaches to 
consumer credit counseling and other financial literacy or financial 
protection practices.

Financial Exploitation of Older Americans

    7. What types of fraudulent, unfair, abusive or deceptive practices 
target Americans age 62 and over? Comments could include unique types 
of financial exploitation or additional information concerning the 
examples listed below.
    a. Power of Attorney or Guardian Abuse, whereby an agent under 
power of attorney or a court-appointed guardian uses his/her fiduciary 
authority (or a forged power of attorney instrument) to misappropriate 
the older person's assets and uses them for personal gain rather than 
for the support of the incapacitated older person; and
    b. Affinity fraud, in which the characteristics of a trusted 
advisor such as a member of the clergy or government official are 
impersonated by those attempting to extract payments or personal 
information from an older person.

Financial Exploitation of Older Veterans of the Armed Forces

    8. What types of fraudulent or deceptive practices target older 
veterans and/or military retirees? Comments could include unique 
examples of financial exploitation or additional information concerning 
the examples listed below.
    a. VA Aid and Attendance fraud, whereby veterans are advised to 
transfer retirement funds into irrevocable trusts that cause them to 
lose access to the funds and also become ineligible for Medicaid 
benefits; or,
    b. Military pension buyout schemes, in which veterans are offered 
cash payments in return for their military pension payouts in a manner 
that could ultimately deprive the veteran of the majority of his or her 
pension.

    Dated: April 27, 2012.
Meredith Fuchs,
Chief of Staff, Bureau of Consumer Financial Protection.
[FR Doc. 2012-14854 Filed 6-18-12; 8:45 am]
BILLING CODE 4810-AM-P