Denver, CO. The National Center on Elder Abuse estimates that more than 5 million people might be victims of financial abuse. Most often, elders are victims of financial abuse and exploitation because they have signed a financial power of attorney giving someone access to their bank accounts and other financial affairs.

Financial institutions, especially bank tellers, are often the first to note there is a problem. These third party professionals often recognize a problem may be developing because the elder is accompanied by a stranger to the bank and seems uncomfortable; or the elder is withdrawing large sums of money in cash; or worse the elder is confused, has given a trusted confidante the ability to access their bank account and the confidante withdraws large sums of money that are clearly outside of the scope of the needs of the elder.

However, financial institutions are bound by confidentiality laws that limit their ability to release financial records necessary to facilitate a rapid response from law enforcement and social services agencies. Tellers often express concern and feel impotent in these situations because they cannot share their concerns with the authorities who can stop the financial abuse and exploitation.

Due to the scope of this problem and the pervasiveness of the problem, lawmakers and the Colorado Attorney General passed a law in the 2009 legislature requiring financial institutions to offer eligible account holders the option to voluntarily sign a prior consent form to be placed on their account and waive their right to confidentiality. The form authorizes the financial institution to contact county departments of human services and local law enforcement of a known or suspected financial exploitation action of an account holder.

By signing the form the account holder gives law enforcement and the county department of human services access to every deposit, trust, safety-deposit, loan, and every other account with a specific financial institution current or in the future.

To further protect the account holder as many times those engaged in exploitation also manage the mail and other forms of communication, notice to law enforcement and the county department of human services is authorized without notice to the account holder is also waived.

When the financial institution notifies law enforcement or the department of human services, the consent form allows for the release of the account number, statements, signature cards, information about specific transactions including the amount and to whom. The form further allows reporting even if it is a joint account of one of the parties who may be suspected of abuse. While the financial institution is not obligated to report suspected elder abuse or financial exploitation, the expressed permission by signing the form does exist.

The consent form is durable and remains in effect until the account holder revokes it with the financial institution. Account holders who have accounts at more than one financial institution will need to sign a consent form for each company.

Elder abuse and financial exploitation that are committed against an at-risk adult who enters into a trusted relationship, the offender, if convicted can be held liable for both fines and mandatory jail time.

However, many financial institutions have not been very diligent about notifying account holders of the availability of this law and providing them with the form to sign for additional protection.

Older adults who have signed a power of attorney or who are considering signing a power of attorney, should consider contacting their financial institution and signing a consent form. Though most of us select trustworthy individuals to represent us as powers of attorney, the temptation for abuse always exists and one can never be too cautious.

If you contact your financial institution about signing a consent form and they are unfamiliar with the law, please call CGS at 303-333-3482 and we will provide you with copies of the form, as well as the statute authorizing them to make this service available.