The Oregon Department of Consumer and Business Services is launching a campaign to educate seniors and their families on types of financial abuse they may be subjected to. The department will be putting on presentations around the state to discuss predatory marketing by insurance agents and security brokers, the law that requires agents and brokers to ensure a product is suitable for the buyer, and the insurance and investment-related scams aimed at our senior citizens. The department has also developed several free publications that will assist seniors and their loved ones when faced with a situation that may involve unscrupulous financial dealings.

Seniors are tempting targets for unscrupulous or deceptive sales practices, because they are at a point in life where decisions about large sums of money from a lifetime of savings and asset appreciation are being made. It can be difficult to separate financial decisions made for legitimate reasons, from pressured decisions that may cause financial harm.

Actual cases being investigated by the Oregon Department of Consumer & Business Services include:

A 92 year old was sold a five-year term annuity that tied up his money and had large penalties for early withdrawal.

An agent misrepresented a product to an 80-year-old widow and convinced her to cash out her deceased husband’s annuities, which could have been continued under her name. The agent received a large commission on a new product she purchased, and the widow lost earnings on the annuity.

An ill 77 year old had no access to his money, having been talked into purchasing a 5-year annuity. He died the same year.

A recently widowed 78 year old was induced to surrender her existing annuities worth $706,419 and purchase eight new annuities, causing her a financial loss of approximately $85,000.

An insurance agent was caught in a bank trying to cash out an 87 year old widow’s CD in order to write a 10-year fixed annuity. The application paperwork the agent had was blank except for the widow’s signature.

An agent sold a $7000 life insurance policy to an 80-year-old widow with Alzheimer’s.

An insurance agent put all the liquid assets of a couple aged 84 and 76 into an annuity, leaving them with only $3500 while earning the agent a large commission.

An agent sold an annuity to an 83 year old who didn’t understand the product. When money was needed, the family had to pay over $93,000 in penalties for early withdrawal.

Fortunately, the Department was able to help most of these individuals in retrieving their losses, but the Division knows they are only seeing a small portion of the senior financial abuse that is occurring in Oregon.

Learn about your rights and the services that can help you. If you or a loved one think you have been a victim of unscrupulous behavior, contact the Department of Consumer & Business Services, Oregon Insurance Division, Consumer Advocacy Unit, 1-888-877-4984 or 503-947-7984 in Salem. Consumer advocates also help Oregonians with any of their insurance complaints.