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CFPB Director Addresses Senior Financial Issues at White House Conference on Aging Regional Forum

April 28th, 2015 · No Comments · Retirement

by Staff

CFPB Director Addresses Senior Financial Issues at White House Conference on Aging Regional Forum

At a time when older Americans should be able to enjoy the fruits of a lifetime of labor, reaching retirement age is all too often wrought with financial challenge. Thus, the focus of remarks from CFPB Director Richard Cordray at the White House Conference on Aging Regional Forum in Cleveland this week.

How the CFPB Protects Older Americans

In his remarks to forum participants yesterday, Cordray outlined all the ways the agency is looking out for older consumers, including:

  • Making recommendations to policymakers to increase training and oversight of “senior designations” of financial advisors – titles that suggest some expertise in senior financial matters. (Unfortunately, these titles can not only be confusing to seniors, but they are also often inflated and “flimsy at best.”
  • Issuing an advisory to seniors on their debt collection rights.
  • Publishing a guide on the pros and cons of reverse mortgages, a top source of consumer complaints from older Americans.
  • Publishing other guides helpful to seniors and/or their caregivers, including Managing Someone Else’s Money, Money Smart for Older Adults, and Protecting Residents from Financial Exploitation: A Manual for Assisted Living and Nursing Facilities.
  • Encouraging financial institutions to act as senior advocates by recognizing, recording and reporting suspicious banking activities unusual for the customer’s normal behavior (e.g., money disappearing from accounts).

Retiring Into Debt?

The assumption is that our debts will be paid off by the time we reach retirement age. Unfortunately, many older Americans are not only carrying debt into retirement, but acquiring a great deal more when they get there.

“The average American is now spending about twenty years in retirement. During these years, they are active consumers,” Cordray told forum participants.

“They are still taking out and making payments on mortgages; they are still borrowing to buy cars and trucks; they are still accumulating credit card debt; some are even taking out student loans on behalf of their grandchildren.

“These heavier debt loads, that previous generations did not have, can threaten their economic security.”

Don’t let this happen to you or a loved one. Read and share:

Attention Americans 50+: Stop Paying Relatives’ Debts

Are You Factoring a Mortgage Into Your Retirement Plan?

Why (and How) You Should Talk to Your Elderly Parents About Credit Card Debt

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