Need to prepare for old age highlighted

Elderly dad left in lurch by son highlights need to prepare for old age

The case of a son leaving his dad in the lurch resulting in him almost losing his house, highlights the need for people to think ahead to protect their finances in their old age, says Banking Ombudsman Nicola Sladden.

“Financial abuse of the elderly is a serious problem for an aging population. Planning for old age should include ensuring your financial interests are protected when you might not be so capable.

“In a recent case, a retired man helped his son by becoming co-borrower on a loan. The father allowed his house to be used as security. The son then did a bunk leaving his father to make repayments or lose his house. The father wasn’t well-off and appeared vulnerable.

“He could have ended up homeless and in debt, was it not for a concerned friend who complained firstly to the bank, and then to us when the bank’s offer of redress didn’t go far enough,” Ms Sladden said.

Older people can be more vulnerable to financial abuse, including scams, particularly if they have disposable income, are isolated or physically or mentally disabled.

Tips for older people to protect their money:

• keep debit and credit cards safe

• don’t give PINs to anybody - banks won’t ask customers to disclose them

• keep your bank PINs unique – don’t use the same PIN for anything else

• keep a limited amount of money in current accounts

• ensure larger accounts aren’t accessible via an EFTPOS / ATM card

• don’t open emails from strangers, or forward money to people you don’t know

• never allow yourself to be pressured into a financial decision

• monitor your accounts regularly

• report any concerns to your bank.

If you are assisting an older person, look out for:

• unusual changes in bank account balances (such as unexplained large sum withdrawals)

• the inclusion of new names on bank accounts

• account changes made in the absence of the elderly person

• suspicious signatures

• customers appearing forgetful.

For more information see our quick guides on financial abuse of the elderly, common scams targeting bank customers and looking after your credit and debit cards and PINs.

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