Ohio Department of Aging Aging Connection - December 2008

December 2008

Help Protect Older Consumers: Become a "No Free Lunch" Monitor

Three out of five investors age 60 and older have received six or more invitations to a free investment seminar in the past three years, according to AARP. These seminars sound educational and usually include free food, entertainment and door prizes. The invitations tell seniors they will learn how to protect their money from market losses, eliminate taxes, invest without risk, double or triple their interest and avoid probate fees.

The Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and state securities regulators have investigated these free seminars and found significant fraud.

Even though most promise that they are not sales pitches, these financial seminars are designed to sell seniors a product or to get them to open a new account. During the seminar, and in follow-up phone calls or in-home visits, individuals may be pressured to make unsuitable investment decisions without fully understanding the products being offered.

You can help protect older consumers in your community and assure that free investment seminars adhere to the guidelines set by financial regulators by becoming an AARP Free Lunch Monitor volunteer.

• Share your free lunch (or dinner) invitations with AARP. Gather up any invitations you or your friends receive and send them to AARP Ohio, 17 S. High St., Suite 800, Columbus, OH 43215.
• Attend a seminar, then complete and return AARP's "What to Listen for" checklist. Include all the handouts provided during the presentation. AARP will send concerns to state regulators for review.

If an older adult you know has purchased an unsuitable product through high pressure sales tactics at an investment seminar or did not get full disclosure of the product's terms:

• Contact the supervisor of the salesperson to cancel the sale;
• Call the insurance carrier or financial institution and say that you want a refund without penalty; and
• File a complaint about the company with the Ohio Department of Commerce, Division of Securities.

The Division investigates complaints and has the authority to bring administrative action against an entity. However, they can not cancel any contract or order an entity to refund money.

For more information on how you can help protect Ohio consumers, call 1-866-389-5653.