The California Elder Abuse Reporting Act

Written by Adam Peck Category: Financial Elder Abuse January 26th, 2013 3 min read

Every year in California, over 200,000 elderly American citizens suffer from financial abuse at the hands of unscrupulous family members and financial institutions. Yet, only about one in every 100 cases is ever reported. The Elder Abuse Reporting Act was implemented to make it everyone’s legal responsibility to stand watch and report any suspicion of elder abuse.

In September 2005, California Gov. Arnold Schwarzenegger signed the Financial Elder Abuse Reporting Act in an effort to help protect the elderly citizens of California from financial abuse by family members, friends, and con artists. According to the governor’s strategy, he wants to protect the innocent elderly, “by keeping them out of the grasp of unscrupulous people.”

How the Act Protects the Elderly

The enforcement of the Elder Abuse Reporting Act has now made it the responsibility of every employee at banks, savings associations and credit unions to be “mandated reporters of suspected financial abuse.” They are now required to report to the local Adult Protective Services Department (APSD) or to law enforcement agencies any suspicions of financial abuse towards any elder or dependent person. But the responsibility goes beyond the financial institutions. The act also extends its obligations to the general public and they, too, are responsible to report any suspicions they have of elder abuse to the employees of financial institutions or to the APSD.

Mandate of the Act

The Elder Abuse Reporting Act was designed to protect not only the elderly, but the institutions that are being targeted. It protects elderly citizens from financial abuse and reduces the number of incidents involving elderly and dependent citizens. But it also protects the financial institutions from lawsuits that are being filed by family members of abused persons. Gov. Schwarzenegger believes that it’s the responsibility of every citizen to help protect the innocent. During the press release at the time he announced the new act, he said, “I am committed to ensuring the safety and security of California’s growing population of seniors. Our older Californians have worked hard all their lives and should enjoy the fruits of their labor.”

Signs of Elder Abuse

There are many obvious signs, and some not so blatant signs, to be aware of while protecting elderly citizens from abuse. Most of them involve the unauthorized use of finances and property that is often carried out by family members, caregivers, insurance companies or scam artists. Some of these violations include the misuse of personal checks, credit cards and accounts; stolen cash, income checks or even household goods; a suspicious-looking signature that could be forged; and identity theft. More discrete signs include some family members gradually becoming more wealthy, new and unnecessary items being purchased and the disappearance of wallets or money under the assumption that the elderly person misplaced them.

Criminal Offense

If an employee of a financial institution fails to report suspicions immediately, a fine of up to $1,000 could be issued against the institution. And a fine of $5,000 could be issued against the employee if it can be determined that the neglect was intentional.

– from Steven Peck, Senior Attorney at Peck Law Group

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.