This was a presentation given on 08/17/21 for Middle Alabama Area Agency on Aging.

1. CONSUMER ISSUES
FOR SENIORS AND CAREGIVERS

2. Jan Neal
JAN NEAL LAW FIRM, LLC
207 N 4TH St
Opelika, AL 36801
(334) 745-2779
1-800-270-7635
www.janneallaw.com
neal@janneallaw.com

3. SAVE PAPERS
One of the major challenges in dealing with consumer issues is located the paperwork involved in a given transaction or issue.
Keeping papers organized and accessible is beneficial when disputing an issue, and it can make the difference in whether or not
the consumer can prove a claim.
A guide to this issue can be located at:
https://www.alabamalegalhelp.org/resource/save-those-papers

4. CREDIT ISSUES
The importance of good credit cannot be overstated.
Benefits of good credit:
• savings on interest rates on expensive purchases like houses and cars
• better terms and availability of loans
• insurance discounts
• access to good credit cards
• waiver of security deposits on utilities
• employment opportunities
• leases
Bad credit can prevent someone from getting goods and services they may need in a pinch.

5. The Federal Trade Commission (FTC) enforces the credit laws to ensure that all consumers have a fair and equal
opportunity to get credit and to resolve disputes when there are credit errors.
Under the Fair Credit Reporting Act (FCRA):
You have the right to receive a copy of your credit report. The copy of your report must contain all the information in your file
at the time of the request.
Each of the nationwide credit reporting companies – Equifax, Experian, and TransUnion – is required to provide you with a
free copy of your credit report, at your request, once every 12 months.
Under federal law, you’re also entitled to a free report if a company takes adverse action against you, like denying your
application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action.
The notice will give you the name, address, and phone number of the credit reporting company. You’re also entitled to one
free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is
inaccurate because of fraud, including identity theft.
According to the Federal Trade Commission, to order your reports visit www.annualcreditreport.com,
call 1-877-322-8228, or complete the Annual Credit Report Request Form located at
https://www.consumer.ftc.gov/sites/www.consumer.ftc.gov/files/articles/pdf/pdf-0093-annual-report-request-form.pdf and mail
it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

6. Caregiver Tips
When beginning to manage finances for another get a handle on recurring charges billed to each credit card such as
subscriptions to media services, etc., for budgeting purposes
Check on interest rates to determine which debt to pay off first
Eliminate cards not used specifically for rewards or for recurring charges
Set a small limit on one card for the care recipient to use
Make a copy of all cards in a wallet or purse
Keep these numbers for a stolen or lost wallet:
Equifax: 1-800-525-6285
Experian (formerly TRW): 1-888-397-3742
Trans Union: 1-800-680-7289
Social Security Administration (fraud line): 1-800-269-0271

7. Debt Collection
The Fair Debt Collection Practices Act (FDCPA), makes it illegal for debt collectors to use abusive, unfair, or deceptive
practices when they collect debts. It is a federal law enforced by The Federal Trade Commission (FTC).
The law covers credit card debt, auto loans, medical bills, student loans, mortgages, and other household debts, but not
business debts.
While a debt collector is permitted to make contact by phone, letters, emails or text messages, debt collectors cannot do the
following:
• contact the debtor before 8 a.m. or after 9 p.m. unless the debtor agrees to the contact
• contact the debtor at work if told the debtor is not allowed to receive calls there
• harass the debtor (for instance, threaten to hurt the debtor)
• use obscene or profane language
• repeatedly call the debtor
• lie (for instance, misrepresent what is owed, pretend to be someone they are not, threaten to arrest the debtor or threaten
legal action unless the action threatened is true)
• try to collect interest, fees, or other charges on top of the amount owed, unless the original contract or a law says they
can
• deposit a post-dated check early
• publicly reveal the debtor’s debts, including by sending postcards or putting information on envelopes

8. FDCPA MEASURES TO STOP COLLECITON CONTACT
Mail a letter to the collection company and ask it to stop contacting you. Keep a copy for yourself. Send the letter by certified
mail and pay for a “return receipt.” That way, you’ll have a record the collector got it. Ask for proof of the debt. In other
words, a copy of the receipt(s) for purchase(s), original bill, etc., especially if you do not recognize the debt.
If you do not believe you owe the debt, within 30 days of being notified, send a letter disputing the claim and ask for
verification of the debt. Once the collection company gets your letter, it can only contact you to confirm it will stop contacting
you in the future or to provide the debt verification you requested. If you did not ask for verification, the collector can only
contact you to advise you of what its plans are for specific action, like filing a lawsuit.
If you’re represented by an attorney, tell the collector. The collector must communicate with your attorney, not you, unless
the attorney fails to respond to the collector’s communications within a reasonable time.
An attorney can evaluate your assets and income to determine if you are judgment proof. If you own no property or car and
have no income that can be garnished (seized by the creditor after a judgment is awarded), then you are judgment proof. In
that event a debt collector may cease efforts and write off the debt since it cannot recoup from the debtor. See slide 10
below.
An attorney can also evaluate whether the debt is outside the statute of limitations.
Consider talking to the collector at least once, even if you don’t think you owe the debt or can’t repay it immediately. That
way you can get more information about the debt and confirm whether it is legitimate. To avoid debt collection scammers,
be careful about sharing your personal or financial information, especially if you’re not already familiar with the collector.

9. Report any problems you have with a debt collector to the Alabama Attorney General’s office. See slide 17 below.
You may also file a complaint with the Federal Trade Commission (FTC). The FTC cannot solve your individual problem, but
that agenvcy can and will use what you put in your complaint to try to uncover patterns of fraud and abuse. After the FTC
investigates, it may be able to stop any unfair business practice.
You also have one year to sue a debt collector who violates the law.

10. BEING JUDGMENT PROOF
Many federal benefits are generally exempt from garnishment, except to pay delinquent taxes, alimony, child support, or
student loans. There are state limits on what can be taken from paychecks as well (roughly 25 percent).
Federal benefits that are generally exempt from garnishment (except to pay delinquent taxes, alimony, child support or
student loans) include:
Social Security benefits
Supplemental Security Income benefits
Veteran’s benefits
Federal student aid
Military annuities and survivors’ benefits
Benefits from the Office of Personnel Management
Railroad retirement benefits
Federal emergency disaster assistance

11. PROTECTIONS FOR SOCIAL SECURITY PROCEEDS IN BANK ACCOUNTS
While Social Security benefits cannot be directly garnished, funds in bank accounts can be seized with a property judgment
awarded to the creditor in court. That means that if you get Social Security benefits not directly deposited into a bank
account or Social Security funds move to another account and commingled with other funds, there is no protection, and the
account may be frozedn if the creditor serves the bank with a garnishment or attachment notice
Under federal regulations, if a bank receives a garnishment order from a judgment creditor, it cannot freeze money that came
from Social Security benefits (or benefits from certain other government sources) if the government deposited the
benefits directly into your account within two months prior to the garnishment order. This protects up to two months
worth of Social Security benefits, and banks have a duty to review accounts to provide this protection. Note that this
protection would not exist for garnishments or attachments for past due child support and federal taxes.
It is a good idea to have a direct deposit account for only Social Security and other federal benefits for easy tracking of
protected amounts.

12. MEDICAL DEBT
Medical debt is one of the most prevalent types of consumer debt. In 2017 one in five Americans were contacted by a debt
collector over an unpaid healthcare bill. Older adults may struggle to pay Medicare premiums and copayments, and are more
likely than younger consumers to file for bankruptcy due to medical expenses
Consumer Tips To Avoid Medical Debt:
• Take steps to avoid medical debt by remaining informed about insurance plans and confirm coverage rules with the
insurance company or public payer rather than simply relying on medical providers for information about the insurer’s
network, and how much coverage is likely to be provided for a given procedure.
• There are protections available in non-profit hospitals that are not available in for profit hospitals. The Affordable Care Act
(ACA) requires non-profit hospitals to develop and publicize financial assistance policies. Non-profits are also prohibited
from engaging in some of the most aggressive bill collection practices. In non-emergency situations ask the hospital for a
copy of its financial assistance policy to review before receiving care. Find out if a hospital is non-profit by asking the
hospital, checking with the charities or non-profits division of the state’s office of the attorney general, or by searching
online at hospitalinspections.org. At that site if a listing is shown as proprietary, it is a for profit facility vs governmentally
funded or voluntarily non-profit.
• Do not pay with a credit card. Once a medical debt becomes a credit card debt, the individual loses the opportunity to
negotiate with the health care provider, and any enhanced consumer protections for medical debts may be lost as well.

13. • While some states allow creditors to sue a married person for medical debts incurred by his or her spouse, Alabama
does not (Doctrine of Necessities abolished in 1992)
• Screen for Low Income Subsidies and Medicare Extra Help
• Contact local ADRC and SHIP Program

14. DEBT RELIEF SERVICES
Debt relief services are sometimes scams. Companies may falsely promise debtors that they will negotiate with creditors to
settle or reduce the debtor’s financial obligations, but often the consumer receives no service at all.
Auto loan modification scams falsely promise to reduce monthly car loan or lease payments to help the debtor avoid
repossession.
Credit repair scams also target consumers who are having credit problems by offering services to falsely claim that they will
remove negative information from consumers' credit reports even if that information is accurate.
The FTC has brought many law enforcement actions against these dishonest credit-related services, and the agency has
partnered with the states to bring hundreds of additional lawsuits.
If considering one of these services, look for reviews and complaints online about the company before signing up. Check
with the Better Business Bureau and contact the state attorney general and consumer protection agencies like Consumer
Financial Protection Bureau to see if there are complaints or enforcement actions against the company. You need to
determine if the company has met licensing requirements in the state. Beware of upfront payments and a failure to disclose
fees.

15. A good publication offering practical advice on dealing with debt published by the FTC is Coping with Debt. The publication
can be found online at https://www.consumer.ftc.gov/articles/pdf-0037-coping-with-debt.pdf and is a good resource to read
BEFORE signing up for a debt relief program.
The publication indicates that:
“most reputable credit counselors are non-profits and offer services through local offices, online, or on the phone. If possible,
find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities,
and branches of the U.S. Cooperative Extension Service operate non-profit credit counseling programs. Your financial
institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.
But be aware that “non-profit” status doesn’t guarantee that services are free, affordable, or even legitimate. In fact, some
credit counseling organizations charge high fees, which they made hide, or urge their clients to make “voluntary”
contributions that can cause more debt.”
The publication explains the way debt management plans work and strongly recommends debt counseling be engaged in
with any debt repayment plan.

16. BANKRUPTCY
Many people see bankruptcy as a guaranteed solution for debt, but whether to file for bankruptcy relief is no simple analysis.
It depends on a person’s amount of debt, source of income, exempt resources vs. debt and whether he or she can afford the
fees involved in bankruptcy. Apart from those considerations, if bankruptcy is an option, the type of bankruptcy must be
considered.
A Chapter 7 bankruptcy eliminates all debt, but a Chapter 13 pays off some or all of the debt within three to five years
through a payment plan. The filing fee for a Chapter 7 is $338 which must be paid up front, and the filing fee for a Chapter
13 is $310, but it may be paid over time as part of the repayment plan. Attorneys fees are similar. For a Chapter 7 average
attorney fees are $815 - 1500 and must be paid up front, but fees in a Chapter 13, though twice higher, can be paid as part
of the plan.

17. Attorney General Complaints
The Consumer Interest Division serves as a mediator of disputes between consumers and businesses. Although the
Attorney General cannot serve as a private attorney for an individual or provide consumers with legal advice, the Consumer
Interest Division can mediate complaints to the mutual satisfaction of the consumer and the business. The Consumer
Interest Division also receives consumer calls and provides information regarding scams and mortgage fraud, as well as
other consumer related fraud.
Alabama law requires charities, health studios, professional fundraisers, professional solicitors, commercial co-venturers and
telemarketers that solicit in or from the State of Alabama to register with the Attorney General’s Office. Registration
information can be found at https://ago.igovsolution.net/online/Lookups/Business.aspx, and for specific questions regarding
registrations, call 1-800-392-5658.
Consumer Hotline: 1-800-392-5658 or 334-242-7335
Online complaint form at https://www.alabamaag.gov/consumercomplaint

18. CO-SIGNING ON A DEBT
When a person co-signs on a debt there are risks he or she takes to include:
• Incurring full liability on the debt if the borrower does not pay in full and liability for late fees, lawyer fees and court costs if
the case ends up in court
• Agreeing to allow the lender to seek payment from you without first trying to get payment from the borrower
• Putting more debt on your credit record, which may prevent you from getting credit you need, and possibly hurting your
credit if the borrower does not repay in full and on time
• Causing complications when your estate is being settled in probate.
Seriously consider whether co-signing is something you should do and consider how it can affect your finances and the
property you could lose if you are sued.
Get the lender to give you written assurance that you will be notified if the borrower misses a payment.

19. PAYDAY LOANS
When people are desperate for money they turn to lenders who charge extremely high amounts to borrow the funds.
Payday loans, title loans and pawnbrokers are how people sink into debt they can’t get out of. This type of borrowing should
be discouraged.
While payday loans are legal in Alabama, the state imposes a $500 loan limit. Payday loans are allowed for a period of 10 –
31 days with the maximum finance charge of 17.50% for every $100 and 456% APR. One rollover is allowed and a cooling-
off period of 1 business day after the 2d consecutive loan should pass before a person can apply for a new loan. There is a
$30 NSF charge. Criminal actions against borrowers in Alabama are generally prohibited, however, in rare cases they can be
initiated in case a repayment check is returned due to a closed account.

20. AMBULANCE BILLS
Ambulance bills are often denied by Medicare, and many people do not understand the stringent medical requirements for
Medicare to pay. Part B of Medicare will generally cover up to 80% of emergency and non-emergency ambulance medically
necessary transports and when transport by any other means could endanger the health of the patient.
There are also destination requirements in that Medicare will only cover transportation to the nearest appropriate medical
facility that can provide the level of care necessary to treat the patient’s illness or injury.
Medicare is much more likely to cover ambulance charges for a true medical emergency, but non-emergency transportation
is not as likely to be approved because Medicare regulations require that either the beneficiary be bed-confined and that the
beneficiary’s condition is such that other methods of transportation are contraindicated, OR, if his or her medical condition,
regardless of bed confinement, is such that transportation by an ambulance is medically required.
Medicare regulations consider “bed confinement” to mean that the beneficiary is
Unable to get up from bed without assistance;
Unable to ambulate; and
Unable to sit in a chair or wheelchair.

21. It is important to understand that non-emergency transportation is Medicare covered as a last resort. While it is hard to
imagine, Medicare will comb through medical records to look for any indication that the patient could have been transported
by other means without it putting the patient in danger.
Often Medicare establishes that the patient was not bed confined because medical records document or ambulance records
document that the patient was standing to be dressed or sitting in a chair.
Research carefully before using an ambulance for non-emergency transportation.

22. CREDIT ISSUES AND ESTATES
When a debtor dies, his estate must pay off his debts before probate property can be passed to the heirs. If there are not
enough assets in an estate to satisfy the creditors, the estate is considered insolvent, and the probate court decides how to
use the assets to satisfy which creditors.
When estate planning people often do not consider debt, such as a mortgage on a home, in making their plans. It is
important to realize that the debt must be satisfied some way before that real property can be passed.
Another surprise for many people is Medicaid Estate Recovery. All estates must give notice to Alabama Medicaid to
determine if the agency can make a claim against the estate to recoup funds spent on care at some point during the
decedent’s lifetime.
For more information about Medicaid Estate Recovery see an ebook available at
https://janneallaw.files.wordpress.com/2019/09/alabama-medicaid-estate-recovery_08-19.pdf
This is in the publications section of our web site at www.janneallaw.com.

23. FUNERAL PLANNING
The Federal Trade Commission (FTC) enforces the Funeral Rule which is a law making it possible for consumers to choose
only those goods and services they want or need and to pay only for those selected, whether making arrangements when a
death occurs or in advance. This law was established in April 1984 to regulate the funeral industry and protect consumers
from unscrupulous selling practices such as funeral homes misleading people to think that they had to purchase certain
services that were not necessarily required, such as embalming. The rule also reduced the cost of caskets which had been
inflated through a monopoly on caskets sold only by funeral homes.
The Rule does not apply to third-party sellers, such as casket and monument dealers, or to cemeteries that lack an on-site
funeral home.
The Rule allows a consumer to compare prices among funeral homes and makes it possible for the buyer to select the
funeral arrangements he or she wants at the funeral home of choice.

24. Protections include:
• right to purchase only the funeral arrangements you want. You can purchase services and goods ‘a la carte’ and do not
have to purchase a funeral package unless you so choose
• right to obtain funeral price information over the phone, and a funeral home must disclose their prices to you if you ask
• when you visit a funeral home to inquire about funeral services, the funeral home must provide you with a printed,
itemized price list, listing all the services they offer. This is called a General Price List (GPL)
• requires a hard copy casket price list (CPL) to be provided to you before you are shown any actual caskets
• can purchase a casket or cremation urn from elsewhere than your funeral home and they MUST accept it. Additionally
they CANNOT charge a handling fee, nor insist you are present to receive the delivery
• embalming is not required by law in any state in the U.S. if the burial or cremation is to be carried out in a timely fashion
• ‘alternative container’ for a cremation is allowed. No state law requires that a casket be used for cremation purposes,
instead a more inexpensive alternative container can be used.

25. PRENEED PROTECTIONS
The seller of preneed services and merchandise must apply yearly for a certificate of authority, and certificate holders may
provide security that funds will be available to perform obligations under contracts by trusts or surety bonds. § 27-17A-13 - §
27-17A-14.
What if merchant goes out of business after you purchased a preneed contract? You would need to contact the Department
of Insurance to determine what security structure is in place. The law says that any dissolution or liquidation of a certificate
holder shall be deemed to be the liquidation of an insurance company and shall be conducted under the supervision of the
commissioner, who shall have all powers with respect thereto granted to the commissioner with respect to the liquidation of
insurance companies. So the Department of Insurance would likely contact the contract holders to make arrangements to
assure that money is refunded from the source of security. Of course there would be no relief for those who were doing
business with companies who were not certificate holders following the law.
The purchaser of preneed contracts should look for the specific disclosure regarding the certificate holder's requirement to
place certain preneed funds received in trust, which is required in the preneed contract. If that disclosure is not there then
the purchaser may not be dealing with a certificate holder company.

26. IDENTITY THEFT
Here are some other telltale signs that someone may have stolen your identity:
Failure to receive mail such as bills or checks
Bills for items you didn't order or statements for credit cards you didn't sign up for
Denied credit, despite having an excellent credit rating
Unauthorized bank transactions or withdrawals
Notice that your personal information may have been compromised in a data breach
Electronic tax filing is denied
Unauthorized authentication messages by text or email for unknown accounts
Email from an organization that says your account has been recently accessed and it wasn't you
Bill or an explanation of benefits for health care that you didn't seek

27. STEPS TO RECOVER AFTER IDENTITY THEFT
The Federal Trade Commission (FTC) offers an excellent web site to navigate victims of identity theft through the process of
recovery with step-by-step instructions and contact information. It is located at https://www.identitytheft.gov/#/Steps
Immediate Steps include:
Call the companies where you know fraud occurred
Place a fraud alert and get a copy of credit reports
Report Identity Theft to the FTC
File a local police report
Next Steps include:
Close new accounts opened in your name
Remove fraudulent charges from your accounts
Correct your credit report
Consider adding an extended fraud alert or credit freeze
Review your credit reports often
There are additional steps to take depending on the type of identity theft you experience, such as utilities, phones, student
loans, governmental benefits, etc., which are addressed at the web site.

28. EVICTION GROUNDS
A person can be evicted for the following reasons:
• Non-payment or late payment of rent
• Lease violations (e.g. keeping a pet when that violates the lease agreement, allowing friends or relatives to live on the
property exceeding the occupancy allowed in the agreement)
• Illegal use of property (e.g. possession or use of illegal drugs, discharging a firearm, criminal assault of someone on the
property)
• Removal of property as a rental unit
• Sale of property by the landlord at the conclusion of the lease
It is illegal for a landlord to evict a tenant due to retaliation.
The blanket federal COVID eviction moratorium ended July 31, 2021, but a moratorium for COVID infection intense areas of
the country remains effective until October 3, 2021.
Whether or not a lease exists determines when a landlord can end the tenancy.
When the landlord wishes to end a month-to-month tenancy but does not have legal cause to evict the tenant, then the
landlord must give the tenant a 30-day written notice to vacate. This notice must inform the tenant that the tenancy will expire
in 30 days, and the tenant must move out of the rental unit by then.
When the landlord wants to end a fixed-term lease but does not have legal cause to evict the tenant, the landlord must wait
until the lease has expired before expecting the tenant to move. Unless the terms of the lease specifically require it, the
landlord is not required to give the tenant written notice to move before the end of the lease. When the lease has expired, the
landlord can expect the tenant to move.

29. EVICTION PROCESS
To terminate the lease, the landlord must first give the tenant notice. In Alabama, the landlord is required to give a seven-day
notice in all types of situations. However, the tenant's options will vary depending on the reason they are receiving the notice.
If the tenant violates the lease or rental agreement, the landlord can give the tenant a seven-day notice to remedy. This
notice must inform the tenant that the tenant has seven days to remedy the violation or move out.
A seven-day unconditional quit notice permits the landlord to evict without the tenant being given an opportunity to fix the
violation. These are cases based on illegal or disruptive behavior on the part of the tenant.
When served with Unlawful Detainer papers, a tenant has seven (7) days to answer in court (if the seventh day falls on a
weekend or holiday, the answer is due the next business day). An answer to the complaint by the landlord must be filed in
that time.
In an eviction (Unlawful Detainer), the papers will provide a court date; the tenant must appear on that date to challenge the
eviction if there are grounds to challenge.

30. FORECLOSURE
If you are facing foreclosure, there may be an option that will let you keep your home or get out from under the debt without
ruining your credit. Some things you can do:
• Get legal advice
• Beware of Foreclosure Rescue Scams
• Negotiate with your lender or servicer (payment deferral, repayment agreement, temporary reduction of interest rate,
permanent modification of the loan)
• Consider refinancing the mortgage or filing for bankruptcy
• If keeping home is not a realistic plan, sell (to include short-sale with partial forgiveness or deed in lieu of foreclosure in
exchange for release from liability and deficiency)

31. HOME REPAIRS
The Attorney General makes most of the following suggestions:
• Find out as much as you can about the workers (it is especially important to find out about people who come without you
calling and people who come from out-of-town after a natural disaster)
• Ask if the worker is bonded or insured, and ask to see proof
• Regulations vary, but plumbers and electricians must be licensed by the state
• Ask if the worker is licensed to work in your jurisdiction. Contractors may need local licenses if they do major work. To do
home repairs costing over $10,000, contractors will need a home builder's license. You can go to the Alabama Home
Builders Licensure Board website, http://www.hblb.state.al.us, to see if a contractor is licensed.Contractors who do small
odd jobs may not have to be licensed.
• Ask if your job requires a permit (most construction and major home repairs need a permit from the county or city)
• Do not let someone talk you into applying for the permit in your name. If they do not want to be known to local officials,
they may be hiding from a bad reputation.
• Get a written estimate, detailing the work to be done and setting a completion date.
• Ask for references. Get names and addresses. Call the references. Consider going to see some of the work the
contractor has done.
• Do not pay for the full job upfront. Stagger payments as work progresses with final payment to be made at conclusion
and approval.

32. • Make sure you can contact the contractor. Be wary if they can only give you a beeper number or a Post Office box
address. Businesses with established addresses are usually safer.
• An Alabama state law signed September 13, 2004 prohibits "unconscionable pricing" of items for sale or rent whenever
the Governor has declared an official state of emergency. Businesses are prohibited from increasing the price of items for
sale or rent by 25% or more above the average price charged in the same area within the last 30 days. Ask questions to
find out if the price is in line with pre-disaster prices.
You can report any problems of alleged fraud or illegal price gouging by calling Toll-Free 1-800-392-5658 or through the
Alabama Attorney General's main web page at www.ago.state.al.us.

33. REVERSE MORTGAGE SPOUSAL PROTECTIONS
A person must be 62 in order to qualify for a reverse mortgage. If a couple are both 62 or older there is no problem with the
reverse mortgage being put in the names of both spouses, and on the death of one, the other is protected until his or her
death or upon leaving the property.
But what about younger spouses not yet 62? What happens when one spouse on a reverse mortgage dies? What
protections exist for the surviving spouse to assure they have a place to live?
That depends on how the loan was initially set up and the rules that existed at that time. Before 2014 married couples with
one spouse under 62 were in a precarious position. The younger spouse’s name had to be removed from the title to allow
the older spouse to obtain a reverse mortgage in only his or her name. The loan became due and payable when the older
spouse died, requiring the younger spouse to refinance the loan, sell the home or face foreclosure.
HUD changed that policy in 2014 to become effective in 2015 introducing the concept of the “eligible non-borrowing spouse.”
An eligible non-borrowing spouse was given a deferral period if the borrowing spouse died, and they were allowed to remain
in the home for as long as they lived and met the reverse mortgage requirements (paid the taxes, insurance and any other
property obligations such as HOA dues in a timely manner). This was an improvement but still did not protect non-borrowing
spouses on pre-2015 reverse mortgages.
Another problem for spouses, even those on loans originating after 2014, was when a borrowing spouse had to enter a
nursing home for longer than 12 months. Under these circumstances the move was considered permanent, the spouse did
not qualify for a deferral, and the loan was due and payable.

34. On May 6, 2021, HUD issued Mortgagee Letter 2021-11, and the new policy helps borrowers who obtained their loans both
before and after the 2014 rule changes and spouses left in the home when the borrowing spouse enters long-term care.
With the 2021-11 Mortgagee Letter, HUD removed these issues for reverse mortgage borrowers. Spouses of reverse
mortgage borrowers who obtained their reverse mortgage prior to 2014 and were ineligible at the time the loan was closed,
are now eligible for deferral coverage on the loan.
Now all eligible and previously ineligible co-borrowers of reverse mortgages are eligible for deferral upon the
passing of the borrowing spouse and eligible for deferral if the borrowing spouse is forced to leave the home due to
medical reasons.
Spouses of borrowers who married after the loan was closed are not protected. To be covered, you must have been the
spouse of the borrower at the time the loan was originally closed, and you must meet the requirements HUD has placed on
eligible non-borrowing spouses (you must occupy the home, you must continue to pay all property charges in a timely
manner, and you must maintain the property in a reasonable fashion).
If a person owns a house with a reverse mortgage and marries, the only way to obtain protections for the new spouse is to
refinance the loan.

35. NURSING HOME ADMISSIONS
Federal and state law provides that nursing home (rehabilitation facility) admission agreements and addendums:
• Cannot require the resident to waive his/her rights included under the federal regulations and other protections under state or local
nursing home law, nor can the agreement and addendums contradict federal or state laws/regulations.
• Cannot require or request the resident waive his/her rights to Medicare or Medicaid. (example: the nursing home cannot request or
require residents agree to not apply for Medicaid until the resident has first privately paid for a certain period of time.
• Cannot require as a condition of admission (or continued residency) the resident enter into a binding arbitration agreement.
Entering into an arbitration agreement means you waive your right to pursue legal action in the court system if you are harmed.
• Cannot waive (or request the resident waive) its liability for loss of resident personal property. The law requires nursing homes to
“exercise reasonable care for the protection of the resident’s property from loss or theft.”
• Cannot include financial guarantees. (Nursing homes cannot request a third party guarantee of payment. This means family or
friends who co-sign the agreement cannot be financially responsible, however, nursing homes may request and require a resident
representative who has legal access to a resident’s funds and resources (i.e. Power of Attorney) pay for care out of the resident’s
funds without being held financially liable. Caution, while a Power of Attorney may not be directly financially liable to the nursing
home under the admissions agreement, the Power of Attorney may be liable for failure to provide for payment from the resident’s
funds where he/she breaches a fiduciary duty.

36. • Cannot require residents to deposit personal funds with the nursing home. Every resident (unless pursuant to a court order) has
the right to manage his/her financial affairs. While a nursing home cannot require residents deposit personal funds with the
facility, a resident may choose to do so through written authorization. Typically found in addendums, nursing homes will request
that the resident agree to allow the nursing home to become his/her Representative Payee for Social Security. This means the
resident will lose the ability to manage his/her Social Security payments. The nursing home cannot require a resident (or a
resident representative) to do this.
• Arbitration agreements must not be used as a condition of admission to a nursing home or as a requirement for a resident to
continue to receive care at the facility; Nursing homes must explicitly inform the resident or resident representative it is his/her
right to not sign the agreement (this language must also be in the agreement); the agreement must explicitly grant residents the
right to rescind the agreement within 30 days of signing it; provide for the selection of a neutral arbitrator agreed upon by both
parties; provide for the selection of a venue that is convenient to both parties; cannot contain any language that prohibits or
discourages the resident (or anyone else) from communicating with federal, state or local officials (including surveyors, and
representatives of the Office of the State Long-Term Care Ombudsman)
Review admission agreement and addendums carefully. You have the right to cross out provisions you do not agree with or are
otherwise improper. If you have questions about anything, ask. The nursing home is required to explain the terms of its agreement
and addendums. Delaying signing the agreement enables the resident to review the agreement carefully, dispute positions, and
perhaps secure counsel to review the paperwork. Once in the nursing home, there are only limited reasons a nursing home may
transfer/discharge a resident. Failure to sign the admissions agreement is not one of them.

37. ELDER ABUSE PROTECTION ORDER AND ENFORCEMENT ACT
This law permits the filing of a petition for a restraining order specifically related to abuse of a person 60 or older.
That abuse includes arson, assault, criminal coercion, criminal trespass, emotional abuse, financial exploitation,
harassment, kidnapping, menacing, reckless endangerment, sexual abuse, stalking, theft, and unlawful imprisonment.
Relief may be in the form of
• a restraining order, injunctive order, or order of release from custody issued by a circuit, district, municipal, or probate court
that seeks to protect an elderly person, or
• an order issued by a circuit, district, or municipal court that places conditions on the pre-trial release of a defendant in a
criminal case, which may include provisions of bail pursuant to Code of Alabama Section 15-13-190 that seeks to protect an
elderly person.

38. If the person being victimized cannot file the petition himself or herself, the following persons can file:
• a court-appointed guardian or temporary guardian;
• a court-appointed conservator/guardian, which is someone who is legally responsible for someone else’s financial or
medical decisions;
• someone acting under a power of attorney (must include the specific power to prosecute or defend legal actions on behalf of
the plaintiff or otherwise granting general authority with respect to claims and litigation;
• a health care proxy; or
• an “interested person,” which is defined as someone who asks the court to
safeguard your money and property (estate);
use your estate to take care of your needs; or
do something else for your benefit.

39. There are two types of elder abuse protection orders: ex parte orders and final orders.
Ex parte orders are temporary orders that do not require the abuser to be notified beforehand. They last until the court
hearing on a final order. To get a temporary ex parte order, you must show that you are in danger of likely, future harm.
A judge issues a final order after notice to the accused abuser and a court hearing. A final order is permanent unless the judge
directs otherwise.
The court has broad power to order what it believes necessary to protect the petitioner in an ex parte setting (where the alleged
offender is not present) if it finds “a risk of imminent potential harm to the victim.” Relief may include:
• Ordering the offender to stay away from the victim’s residence
• Removing the offender from the victim’s residence, regardless of ownership
• Ordering possession and use of an automobile or other essential personal effects, regardless of ownership
• Ordering law enforcement to accompany the victim to the residence or other location for protection
• Prohibiting the offender from transferring or otherwise disposing of mutually owned or leased property in which the victim
had an ownership interest within the last 12 months
• Enjoining the offender from committing acts of elder abuse

40. • Enjoining the offender form harassing, stalking, contacting or communicating, directly or indirectly, with the victim or
engaging in conduct that would place the victim or any other individual designated by the court in reasonable fear of bodily
injury
• Prohibiting the offender from transferring funds or property belonging to the victim to any person other than the victim
• Directing the offender to refrain from exercising control over the funds, benefits, property, resources, belongings or assets of
the victim
• Requiring the offender to provide an accounting of the disposition of the victim’s income and other resources and the
victim’s debts and expenses
• Restraining the offender from exercising any powers the offender has been granted as the victim’s agent under a power of
attorney
• Requiring the offender to comply with the instructions of the victim’s guardian, conservator or agent under a power of
attorney
• Ordering other relief as it deems necessary to provide for the safety and welfare of the victim and any individual designated
by the court
After the offender appears and a hearing is held, in a final order the court may require the offender to return custody and control
of property, order restitution, prohibit the offender from possessing a firearm unless necessary for employment, and order the
offender to pay attorneys’ fees and court costs.
Forms to file for a protective order are located at http://eforms.alacourt.gov/civil-forms/protection-from-abuse/.