FORUMS

Connect with people who understand what you are going through, seek advice and surround yourself with support. We're free, anonymous, and professionally moderated 24/7.

  • 47,612Members
  • 1,358,869Posts
  • 1,400,000Visitors
Something’s not right

Couples BECOMING ONE (rant).

Couples BECOMING ONE (rant).

I have been meaning to write this thread for some time now, but every time I do, I put it off.

Then I go to work, and the thing I’m going to write about makes me angry and I think “I should write about it”.

Thus ends the cycle.

I remember a video about former NFL player Darren McFadden. His financial advisor had power of attorney over him, using fraudulent documents. He lost an investment that later would have been worth $200,000,000.

Side note, the advisor’s name is Michael Vick. Not related to the football player Michael Vick, who would also be the victim of fraudulent investments.

I work for an investment company. I would be SHAKEN to see a power of attorney for a client that wasn’t elderly or disabled.

One of my pet peeves at work is seeing a client who has all of their contact details set to their advisor’s details.

There’s absolutely no way to contact the client. The financial advisor wrote the original application for them, and they put their own details down. Yes, the client signed off on it, but they shouldn’t be allowed to!

This is especially frustrating and sad when you see a woman who’s put down her husband’s contact details as her own.

I don’t get it. I mean the whole idea of a joint account is kind of messed up.

Every single day, people call up on their partner’s behalf. They say “I should be authorised on the account”. And sometimes they are, the client can add an authorised representative. So I begrudgingly continue.

Or I ask the caller to hand the phone to the actual client, the owner of the account. And they complete a security check and within five seconds, they pass the phone back to their partner, because “he/she does all the paperwork”.

Or when you’re talking to someone and their partner chimes in in the background like they’re the client’s lawyer.

It’s not right. At all. I don’t care if the client signs off on it, because at some point they’re going to have to interact with their own account. And it’s not safe to give someone else control.

I remember getting a complaint from a client who had to get a divorce, and the only way to turn a joint account into an individual account is to make a new policy. This means, though, that the client loses their tenure, so she would technically go from a 10-year client to a new client.

It turns out there’s a way around that, but she said to me in the moment that she had a company with her husband back in the 1990s, and every change she made had to be signed by her husband too, because he was an owner of the company. She said it’s very difficult for women to get a divorce because of everything that’s supposed to be in joint names.

This has gone wrong before.

At my previous role, I worked in CTP. They told us about an incident that happened.

A man called up to pay his ex-wife’s CTP. There was no e-mail on file, so he said “can you e-mail me the receipt?” Well, the receipt had his ex-wife’s new address and he went there.

The company found out the hard way, when she complained, and it was fined $25,000. They changed the rule. Someone can pay on behalf of someone else, but if there’s no e-mail on file, the receipt has to be mailed, and if there is an e-mail on file, only the client can send it somewhere else.

Ultimately, though, it’s probably the partner’s e-mail on file anyway…

4 replies

1 - 4 of 4

In response to: Couples BECOMING ONE (rant).

Re: Couples BECOMING ONE (rant).

Thank you for your insight. It sounds like you are learning life's lessons early, eh? @florencefifty

In response to: Couples BECOMING ONE (rant).

Re: Couples BECOMING ONE (rant).

The problem, @florencefifty , is that financial matters are so complex they are often beyond the understanding of many people, and so they need to basically place their money management in the hands of someone who understands this world, such as their spouse.

My mum is exactly like you describe, and my dad takes care of all the money management in the household. It's quite routine, as you say, for her to perform only the identity verification aspect of a call, then hand the phone off to leave the actual money management discussion to my dad. She just doesn't understand how all that stuff works; and I'm not much better, myself, to be honest.

I completely understand your arguments about how this leaves people vulnerable, but unfortunately, with the financial world being as complicated as what it is, that vulnerability is an unavoidable cost of being able to function at all in this world. I think our only other alternative would be to hide all our money under our mattresses, but then that presents a whole new sort of vulnerability, doesn't it?

In response to: Re: Couples BECOMING ONE (rant).

Re: Couples BECOMING ONE (rant).

It is scary will say just the admin is not as scary as it looks, I think your mum will be surprised how easy it can be. A lot of pages in an application form, for example, aren't relevant to the client's situation.

Some things are complicated enough that you shouldn't try to do them yourself, we generally say to seek advice instead.

@chibam.

In response to: Re: Couples BECOMING ONE (rant).

Re: Couples BECOMING ONE (rant).


@florencefifty wrote:

It is scary will say just the admin is not as scary as it looks, I think your mum will be surprised how easy it can be. A lot of pages in an application form, for example, aren't relevant to the client's situation.


Yes, but:

1. How do you know what you are applying for?
2. Even if you don't have to fill out everything, how do you tell the stuff that you are supposed to fill out from the stuff that you aren't?

I mean, just when it comes to tax forms, if I didn't have help telling me precisely what boxes I need to fill out, and with what numbers, I wouldn't have a clue what to fill out and what to leave empty. Those forms aren't written in plain english!

And when it comes to other financial things, there are all differant types of accounts/deals/ect. that are essentially supposed to make you richer; but they all have weird differant names, and work differantly. How are you supposed to know which are good arrangements to get involved with and which are stupid arrangements that won't work out well for you?

Some people just know how to get around in this realm as if it's nothing; but for the rest of us, it's like trying to walk down main street Beijing, where there are a million signs, and not one of them make any sense.

1 - 4 of 4