It happens far too often — elders getting taken advantage of by their broker. We know this happens for various reasons but that doesn’t justify anyone from committing an act like this. In fact, the Consumer Financial Protection Bureau found that between 2013 and 2018 more than $6 billion was taken from elders. Elders between the ages of 70 and 79 ended up being some of the most vulnerable especially if they knew the suspect.
One particular action that elders can be a victim of is overcharging. This is when a broker or the firm charges an investor for something they didn’t pay for or another transaction. Overcharging doesn’t necessarily always look like one large transaction continuously being charged.
Examples of Overcharging
Fee-related overcharging is when brokers add on extra fees or make multiple transactions for the same fee. This act can be easy to miss if an investor is not watching their statements or has complete oversight of their investments. If an investor suspects fee-related overcharging is being committed, they have a right to see exactly how the broker spent their money. If a broker does not thoroughly explain why a fee was charged, the investor should reach out to an experienced securities litigation attorney.
Another type of overcharging is when the broker says that an investment costs a certain amount but in actuality, it doesn’t. For example, if an investor is looking to purchase a share for $100, the broker may tell the investor that the share actually costs $150. The broker would then keep the extra $50. This is illegal but, unfortunately, it can happen especially to elders who may not investigate the true cost of a share. If an investor suspects that this is happening to them, they should look into what the true cost is of a share.
National Overcharging Attorneys
No investor should ever experience overcharges. That’s why our national overcharging attorneys at Weltz Law are ready to work for you. We offer a free consultation to get started so you are out of nothing if you have a suspicion that you or a loved one may be a victim of overcharging. Contact us today to get started.