New Federal Advisory Could Speed Up Annuities Fraud Lawsuits

New Federal Advisory Could Speed Up Annuities Fraud Lawsuits

By John Curran

One of the difficulties that many seniors may face in determining whether or not they have been victims of annuities fraud is documentation. Contracts and other paperwork that could quickly signal fraud for a financial advisor may mean little to them. New guidance from the Consumer Financial Protection Bureau (CFPB) could change that.

The federal agency is cognizant of privacy laws regarding financial instruments, but with the growth of elder fraud, the CFPB says that if financial advisors see something that could be amiss, they can tell federal agencies or state departments on aging. Annuities fraud lawsuit attorneys may also benefit by being able to compile documents linked to fraud with less red tape.

Specifically, the new financial “Good Samaritan” statement by CFPB officials says that financial advisors will no longer have to worry about the Gramm-Leach-Billey Act (GLBA), which required institutions to observe privacy policies agreed to by seniors and other consumers. Specifically, the notice observes that “specific privacy provisions of the GLBA and its implementing regulations permit the sharing of this type of information under appropriate circumstances without complying with notice and opt-out requirements.”

This new guidance also means that there should be less red tape for annuities fraud lawsuit attorneys in order to obtain documentation for their clients if they have been subject to illegal activities regarding life insurance, reverse mortgages or other instruments that some use to target seniors who may not be aware of the ramifications. This is especially important, as the notice adds, because “Older adults are attractive targets because they may have significant assets or equity in their homes,” and may have lost some of their cognitive faculties as they aged. Still, that does not mean that all transactions will be monitored by advisers, so families may have to follow up if they think that a loved one may have been a victim of annuities fraud.

With or without the new clarification from the CFPB, some seniors are targeted by people looking to profit off their lack of personal finance acumen. If you or someone you know may have been a victim, legal alternatives are available. Get started with a free legal consultation available for those who fill out the short form at the Life Insurance, Annuities Fraud Class Action Lawsuit Investigation today to find out if it makes sense to begin legal proceedings.

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