Securities Litigation Attorneys Representing Clients Nationwide
Elderly clients are in a special position when it comes to investing: having worked for most of their lives, they now have more money than their younger counterparts for purchasing securities. However, it is no secret that financial elder abuse is rampant. Targeted because of their vulnerability, some parties may take advantage of elderly clients by deliberately overcharging them for goods and services. What’s worse is that elders are often overcharged by parties whom they have come to trust.
If you or a loved one have been the victim of overcharging, do not hesitate to seek legal help immediately. Our attorneys at Weltz Law are experienced in securities litigation and can assist you with claiming compensation.
Overcharging cases do not have to be on a large scale or complicated. It can be something as simple as a recurring credit card payment that has already been cancelled or being charged more for a product or service than its actual price. Although some may think that being overcharged for a small sum is insignificant, the numbers can really add up over time and when compiled nationwide.
According to a 2019 report by the Consumer Financial Protection Bureau, over $6 billion dollars in assets owned by elderly clients are suspected to have been involved in fraudulent activity from 2013 to 2018. The worst part is that among elders aged 70 to 79, the average loss proved to be higher if the victim knew the suspect.
Overtrading or Account Churning
When it comes to investing, elders can be the victims of overtrading, also known as account churning. Overtrading occurs when a financial firm or broker makes excessive, unnecessary transactions on the client’s behalf in order to earn a commission. Very often, these investments turn out to be “unsuitable” with the client’s investment profile, which is in violation of FINRA’s Rule 2111. Even if a transaction is suitable in isolation, overtrading means that when viewed as a whole, the multiple unnecessary transactions that have been made are deemed unsuitable as they do not align with the client’s investment goals.
Protection Against Overcharging in Financial Elder Abuse
Unfortunately, there is very little that can be done to eradicate overcharging and overtrading altogether. However, seniors should take some precaution when it comes to their financial activity, such as setting up automatic payments for bills to ensure that any additional charges are immediately noticeable. If you are a senior and suspect you have been a victim of overcharging or overtrading, do not delay – engage an attorney to get the assistance you need immediately.