1. Tools and Resources for Age-Friendly Banking: CFPB Office for Older Americans Naomi Karp Consumer Financial Protection Bureau, Office for Older Americans January 15, 2016 Age-Friendly Banking Roundtable Baltimore, MD

2. Disclaimer  This presentation is being made by a Consumer Financial Protection Bureau representative on behalf of the Bureau. It does not constitute legal interpretation, guidance or advice of the Bureau.  Note: This document was used in support of a live discussion. As such, it does not necessarily express the entirety of that discussion nor the relative emphasis of topics therein. 2

3. Office for Older Americans (OA)  Mission: help consumers 62+ to get the financial education and training they need to:  Prevent unfair, deceptive and abusive practices aimed at seniors  Help seniors make sound financial decisions as they age  The only office in the federal government specifically dedicated to the financial health of older consumers 3

4. OA Initiatives: Financial Institution Role in Reporting Exploitation  PROBLEM:  Financial institution personnel observe signs that an older account holder may be the victim of financial abuse, but may be unsure whether federal privacy laws permit them to share their suspicions with government agencies.  CFPB INITIATIVE  CFPB and seven other federal financial regulators issued Interagency Guidance on Sept. 24 on the Gramm-Leach-Bliley Act (GLBA) and reporting financial abuse of older adults.  Guidance clarifies that reporting suspected financial abuse of older adults to appropriate local, state, or federal agencies does not generally violate the privacy provisions of GLBA. 4

5. GLBA general rule Financial institutions may not disclose nonpublic personal information about consumer to nonaffiliated third party unless institution first provides consumer with reasonable opportunity to opt out of having information shared. 5

6. Exceptions to GLBA general rule Generally, reporting financial exploitation will fall within one of more of these GLBA exceptions: 1)To comply with federal, state, or local laws (e.g. mandatory reporting) 2)To respond to civil or criminal investigation, or subpoena 3)To protect against or prevent actual or potential fraud or unauthorized transactions 4)To extent permitted or required under other provisions of law, to law enforcement (including CFPB), self-regulatory organizations or for investigation on matter related to public safety 6

7. Interagency guidance, continued  In addition: may disclose with the consumer’s consent or consent of the consumer’s legal representative  Guidance incorporates “red flags” from FinCEN advisory, February, 2011 7

8. OA Initiatives: Managing Someone Else’s Money  PROBLEM:  Declining capacity to handle finances can make older adults vulnerable  People with diminished capacity often need surrogate to handle their money  “Lay fiduciaries” – critical source of help; often have no training; some even commit fraud 8

9. Financial caregivers’ stories  Kristin in Virginia: “Even though I’m a financially savvy individual, I had no idea where to get help….”  Hector in Florida: “When you have to take care of someone else’s finances, you feel more responsible for their affairs than you do for your own. It’s overwhelming.” 9

10. Managing Someone Else’s Money, cont’d  CFPB INITIATIVE:  Released a set of national guides called Managing Someone Else’s Money in 2013  User-friendly “how-to” guides for four types of fiduciaries: agents under powers of attorney; guardians; trustees; Social Security representative payees and VA fiduciaries 10

11. What’s in the guides?  Walk fiduciaries through their duties  Tell them how to watch out for scams and financial exploitation, and what to do if their loved one is a victim  Tell them where to go for help 11

12. Four basic duties of a fiduciary  Act only in Mom’s interest – avoid conflicts  Manage Mom’s money and property carefully  Keep Mom’s money and property separate  Keep good records 12

13. State-specific guides  Phase 2 of Managing Someone Else’s Money initiative:  State-specific guides for six states: AZ, FL, GA, IL, OR, VA  Templates and tips for other states  Virginia guides launched August 17, 2015  Florida guides launched September 30, 2015 13

14. The other 44 states and the territories  “Tips” brochure: short replication guide on how to adapt the Managing Someone Else’s Money guides for other states  “Templates”: text of the CFPB’s national guides with highlighted portions on which to focus when adapting the guides for a new state  Released Tips and Templates in October, 2015 14

15. How you can get the guides and tips/templates  National and state guides available for download  Free single and bulk orders  Links for downloading and ordering are at the Managing Someone Else’s Money landing page: www.consumerfinance.gov/managing-someone-elses- money www.consumerfinance.gov/managing-someone-elses- money  Individuals who cannot access the internet: call Consumer Response at 855-411-CFPB (2372) 15

16. CFPB Initiative: Money Smart for Older Adults  PROBLEM:  Many older Americans, their caregivers, and others in the community don’t know how to spot and avoid frauds and scams.  CFPB INITIATIVE:  The Office developed an awareness program called Money Smart for Older Adults: Prevent Financial Exploitation in collaboration with the FDIC. 16

17. Money Smart content  Materials for trainers to provide presentations on preventing, recognizing, and reporting elder financial exploitation  Materials for participants include: – Examples and activities – Glossary of terms – Resources and information on managing money and reporting financial exploitation 17

18. More on Money Smart for Older Adults  OBJECTIVES:  Recognize and reduce the risk of elder financial exploitation  Guard against identity theft  Plan for unexpected loss of the ability to manage finances  MODULE TOPICS:  Common types of elder financial exploitation  Identity theft  Scams targeting homeowners and older veterans  Planning for unexpected life events  How to be financially prepared for disasters 18

19. Downloading and ordering Money Smart materials  To download the Money Smart for Older Americans module, or find upcoming train-the-trainer events, go to www.fdic.gov/moneysmart www.fdic.gov/moneysmart  To order the Participant/Resource Guide, go to www.promotions.usa.gov/cfpbpubs.html www.promotions.usa.gov/cfpbpubs.html 19

20. Planning for Diminished Capacity and Illness  PROBLEM:  When financial capacity diminishes, people become unable to manage their own money and financial assets  They also may become vulnerable to investment fraud and other types of financial abuse  CFPB INITIATIVE:  With the SEC, CFPB issued a Consumer Advisory and Investor Bulletin on planning for diminished capacity and illness  Planning for your own financial future: hope for the best, but plan for the worst  Helping others who may have diminished financial capacity 20

21. Upcoming: Financial Institutions Advisory  Recommendations for financial institutions of preventing and responding to elder financial exploitation  Banks and credit unions – vital role  Promising practices for:  Training staff  Creating effective protocols  Using technology for early detection  Coordinating with law enforcement and social services  Raising public awareness 21

22. Contact Naomi Karp naomi.karp@cfpb.gov 22