How AI Legalese Decoder Can Assist Parents in Managing Financial Overdrafts and Legal Complexities
- December 1, 2023
- Posted by: legaleseblogger
- Category: Related News
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**AI Legalese Decoder Can Help with the Situation**
**Financial Troubles Uncovered: Understanding the Depth of the Issue**
Upon further investigation, I have discovered some troubling financial patterns with my parents’ joint checking account. The account has amassed over $4000 in overdraft fees and an additional 330 in quick pay loans. Furthermore, there are at least $5000 in other short-term personal loans, and numerous cash withdrawals totaling at least $10,000. Their finances have become a complete black box, with little transparency into the nature of these transactions and the state of their accounts.
Using AI Legalese Decoder can provide insights into the legal and financial jargon present in the bank statements and account activities. It can help unravel the complexity of the financial data, making it easier to understand and analyze the true extent of the financial issues at hand.
**Navigating the Banking System and Seeking Solutions**
After gathering these concerning details, I sought advice from various sources, including calling the FCU (Federal Credit Union) to explore potential solutions. However, I was disheartened to learn that there are limited options available for blocking incoming transactions that cannot be completed. The two options presented by the FCU, namely overdraft protection with a $35 fee and no protection resulting in an incomplete transaction but still incurring a fee, seem to put my parents in a difficult position.
AI Legalese Decoder can help decipher the implications of these banking policies and the potential legal ramifications of each option. It can provide clarity on the consequences of these financial decisions and help navigate the complexities of the banking system, empowering individuals to make informed choices.
**Uncovering Inconsistencies and Seeking Resolution**
During my investigation, I also discovered inconsistencies in my mother’s claims, particularly regarding the setup of a new account to receive SSA (Social Security Administration) payments. The FCU’s revelation that no other accounts exist in her name raises doubts about the accuracy of the information provided. I am left grappling with the uncertainty of whether the delay in SSA payments is due to genuine administrative processes or a misrepresentation of the truth.
AI Legalese Decoder can assist in deciphering the regulations and protocols surrounding SSA payments, shedding light on the validity of the claims made. It can aid in understanding the legalities of changing bank accounts for SSA payments and provide insights into potential issues that may be impacting the timely receipt of these crucial funds.
In conclusion, while I grapple with the daunting task of addressing my parents’ financial predicament, the use of AI Legalese Decoder can serve as a valuable resource in navigating the legal and financial complexities intertwined in their situation. By leveraging its capabilities to decode and interpret legal jargon, banking policies, and SSA regulations, I hope to gain a clearer understanding of the issues at hand and seek viable solutions to break the cycle of financial instability.
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AI Legalese Decoder: Simplifying Legal Jargon
Legal language can be complex and difficult to understand for the average person. When dealing with legal documents, contracts, or court filings, it is important to accurately comprehend the content in order to make informed decisions. However, the use of intricate legal jargon often presents a barrier to clear understanding. This is where AI Legalese Decoder can be a valuable tool.
AI Legalese Decoder is a platform that utilizes artificial intelligence to break down complex legal language into simpler, more accessible terms. By inputting legal documents or contracts into the system, users can receive a translated version that is easier to comprehend. This can be particularly useful for individuals who do not have a legal background, allowing them to navigate the intricacies of legal documents with confidence.
In addition to simplifying legal language, AI Legalese Decoder can also help users identify key terms and clauses within a document. This can be especially important when it comes to understanding the implications and obligations outlined in a contract or legal agreement. By providing a clear and concise breakdown of legal terminology, the platform empowers individuals to make well-informed decisions without the need for extensive legal knowledge.
Furthermore, AI Legalese Decoder can be a valuable resource for lawyers and legal professionals. By streamlining the process of deciphering complex legal language, the platform can save time and improve efficiency in legal research and analysis. This allows legal professionals to focus on more strategic and high-value tasks, ultimately enhancing their overall productivity.
Overall, AI Legalese Decoder serves as a powerful tool for demystifying legal jargon and making legal documents more accessible to a wider audience. Whether it is for individuals navigating personal contracts or legal professionals conducting in-depth research, the platform offers a user-friendly solution for understanding and interpreting complex legal language. With its ability to simplify and clarify legal terminology, AI Legalese Decoder is paving the way for greater accessibility and comprehension in the legal field.
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****** just grabbed a
You need to separate your phone and insurance so you don’t catch yourself in a situation where you’re uninsured because they didn’t actually submit payment.
It’s worth asking if they want help or asking what their plans are in five, ten, fifteen years.
There are financial counselors around. Financial Advisors almost always specialize on investing. You need a financial counselor.
Have they always been this way, or is this new due to online banking and online shopping and ATM cards which are now Debit cards? I’m guessing its a matter of their previously marginal ways of working now aren’t, because it’s that much easier to spend directly from the bank.
You can’t help them if they won’t let you…but they need to go all cash. If they don’t have the cash, they can’t buy it.
I also think you (and any siblings y’all might have) need to be prepared to step in to support them. You need to figure out how much you can afford to set aside to help…and start setting that aside in a separate account. When they ask for help, you give them no more than what is in that account…period.
But lets hope you can turn them around before it gets ***that*** bad, and that they figure out how to turn their ship around before it goes over the falls.
Infuriating, no? The truth is, they aren’t going to change. You get to choose your boundaries and level of involvement.
I would maybe toss them a “wake up call” simple document with pretty pictures, and just be sure my finances aren’t in any way entangled with theirs.
No matter what you do, don’t be surprised when there is hostility, push back, anger etc. It’s shame based. They know there’s a problem, but if they don’t look too closely at it they don’t have to acknowledge it’s caused by their behavior. Instead its other external circumstances, totally outside of their control. A litany of excuses & nonsensical explanations, blaming everything in the world but themselves.
Ask me how I know.
Almost all banks have overdraft protection which prevents this itÔÇÖs a check box you can do in any online portal. Maybe the embarrassment of getting declined over and over again will help.
You literally can’t do anything. They’ve been this way for over 30 years, why would they change and how would you force them to do it?
If losing $4,000 isn’t going to change their behavior, then nothing short of literally breaking their legs will. They would have to agree to turn over all financial control over to you, which they won’t.
The best thing you can do is set clear boundaries and limits on what you will do and won’t, and draw a moat around your finances and theirs.
If you want to be a safety net then you can’t let them take you down with them.
The only other real alternative is to be ‘Hollywood kid’ and just become so rich that they would happily give you full control of their finances in exchange for ‘taking care’ of them.
Please head on over to r/AgingParents As soon as a person hits 60 there are more options for getting people forceful help, social workers, financial planning, elder law attorneys
Their standard bills don’t sound that much so the question is where is the money going?
Bank back office nerd here. I agree with the commenter who said they need to go to all cash at this point. I support exceptions and returns at work and depending on how long this type of account behavior has been happening, they could also be at risk for the bank making a determination to stop doing business with them and close the account over excessive overdrafts.
It seems counterintuitive since the bank is making money on the fees, but IÔÇÖd look at their depository agreement to see what the fee structure actually is: is there a daily limit on how many fees are charged? Monthly/statement period? Banks can and do terminate accounts and I empathize because it is really tough for folks to get out of that negative balance cycle.
I would recommend them turning off any automatic payments and take out minimal cash per week to cover grocery/gas. ItÔÇÖs a hassle, but people can still pay bills by check or money order, or even in person. Maybe see if they could temporarily try actively paying instead of auto debits for a while, just so they can truly see what is going out the door.
They need to halt any of the home improvement stuff until this gets under control, and only do maintenance/repairs. Perhaps you can suggest it as a way to prepare for when they are truly retired and on a fixed income: my parents went all cash a few years before retiring and it really helped them. They donÔÇÖt really have a need for a credit card but for the very occasional car rental, and they keep exactly one credit card and they do not carry it day to day, it stays in the safe at home until they need it. My parents barely even use their debit card, because it helps them budget by paying cash.
If their bank decides to close the account for the excessive overdraft behavior or excessive returns, it can impact their ability to obtain another account somewhere. Frankly IÔÇÖm low key surprised it hasnÔÇÖt happened if this has been going on for a while. I would expect that the bank has probably sent letters or communication to them about their overdrafts: they should be getting a notice and also possibly a letter telling them that they have excessive OD on their account. IÔÇÖm sure they are just doing some avoidance tactics but eventually it will catch up to them.
Keep OD protection on, turn all their auto debits with merchants/bills off, leave automatic credits such as direct deposits ON, if they have the account enabled for funds transfers, set it up so the account can only receive credits (ÔÇ£To OnlyÔÇØ) and no debit funds transfers. Get them to switch to cash/paying with guaranteed funds/paying in person as soon as possible. Do not add yourself as a signer to their accounts.
If they allow it, IÔÇÖd look through their bank correspondence to see if they received a letter about excessive overdrafts and read it. It probably has a number or link to any financial counseling services the bank may be offering: they need a counselor not an advisor. Best of luck to you.
You need to find out where the cash withdrawals are going. Where are they being made? The pattern looks like a gambling addiction could be the cause.
So are they drunks or drug addicts or just morons?
Sounds rude right? That’s exactly what I would say to them as you inform them that their insurance and phone are canceled and they need to set new ones up for themselves like big boys and girls.
Some families are top down forever, parents can do no wrong and kids just run around mopping up after them. Some set firm boundaries and treat toddlers like toddlers at any age.
My father has been bailed out by his mother his entire life. He’s 67 and she’s 93 and it’s still going. I have told him in no uncertain terms that the gravy train ends when she passes. He ended up getting his first real job in 40 years during COVID when his easy cash side gigs evaporated.
Lots of good advice here..
But this just boggles my mind. How is it possible to be this irresponsible? I truly just don’t understand. It’s not even an issue of “not enough money”. They seem to have enough to live their lifestyle (and even more than enough to cover thousands in fees too).. It’s just absolutely terrible decision making.
On the missing social security checks. They need to look into that. If she is missing 2 than something happened 3 months ago. Social security pays a month behind (you get January’s money in February).
I heard there was overpayment notices sent out and they were withholding peoples checks. From my understanding it was because some work a little and then the stimulus checks were issued and put them over the cap. Not 100% sure but it’s terrifying. Years ago they would also send out questionnaires you had to fill out like a reevaluation or they wouldn’t issue your money. I haven’t seen those in 10 years though.
If both get ssi/ssdi you can become their payee and allocate their money monthly. It’s a pain. you’d have to pay their bills or set up auto pay to a new checking for their bills and then give them their “spending cash”. This would eliminate losing so much in fees and overdrafts. That’s a lot of money to lose to a big bank
Get your own auto insurance. Being uninsured because of non-payment leaves you vulnerable to really really big bills.
If you live in America there is the option to have the bank deny the swipe when funds are empty, will save the 100 overdrafts at the price of some pride, overdraft practice has been ousted last 10 years as far as I know, just turn off the feature itÔÇÖs an option made available by law due to it being a shady practice.
As far as money management goes, depends on their interest, if they arenÔÇÖt interested in learning youÔÇÖll just be a pest to them with unwanted advice, if they are interested IÔÇÖm sure there are some online courses you can get them involved in.
While it’s admirable you want to help, and they clearly are terrible with finances, your best way to help is to stay out of it.
So get your own insurance, get your own phone plan, and stop logging in to their bank account.
Thing is with these kind of bad habits is they won’t change their ways or fix anything until *they* recognize the problem and *want* to fix it. Until then you trying to tell them what to do probably isn’t going to get anywhere.
My husband used to overdraft an average of 3x a month, through sheer inattentiveness. When I went through the statements and saw this I switched all our banking over to a bank (Capital One 360) that has no overdraft fees. It also wonÔÇÖt let you overdraft. ƒÿé
Problem solved, on that end at least.
TheyÔÇÖre your parents, so itÔÇÖs not like you can force them to switch banks, but if you could convince them thatÔÇÖs where IÔÇÖd start. Removing the ability to overdraft is like taking away the alcohol so the person has to quit cold turkey. Same thing if theyÔÇÖre using credit cards; those need to be locked or theyÔÇÖll never quit spending money they donÔÇÖt have.
The thing is, 60+ really is too late to learn an entirely different mindset. The best you can do for them is limit their ability to keep hurting themselves in this fashion. They need to have everything locked up tight so they canÔÇÖt access money that isnÔÇÖt theirs (credit and overdrafts and payday advances), and they need to be on a strict budget, which would have to be administered by someone responsible. But if they wonÔÇÖt go along with that I donÔÇÖt see how you can do anything to help them.
Wtf setup a credit card to stop overdraft fees. They need to be on a budget, they need to build an emergency savings account.
Turn off overdraft protection for starters. Maybe offer to take over their finances for them and start giving them allowance and all that.
Can you change banks? Some banks in my experience like TD Bank will encourage the so called courtesy overdraft. They do this in a variety of ways such as allowing you by default to make $10 debit card purchase when you only have $9.99 and charging you $35 for a penny overdraft.
They also rearrange how deposits and withdrawals clear. Instead of clearing them in chronological order they rearrange them largest to smallest which could trigger numerous overdrafts.
To be clear, the bank could be encouraging them to overdraft.
With SS, if you are below Full Retirement Age, thereÔÇÖs a cap on annual earnings. ItÔÇÖs about $21k. When you hit the cap, SS deducts part of your check every month. If you donÔÇÖt voluntarily report, you may owe SS money by the time they discover so theyÔÇÖll hold payments until you catch up. Your parents should be getting mail from SS if thatÔÇÖs whatÔÇÖs happening.
There was a time I would not have believed this to be possible, but my MIL was one of these. At least once a month would be asking us to borrow money… she had SS and a pension, when we finally took over the accounts we learned she was bringing in nearly what we were as a couple on her own, with less than 25% going to living expenses.
Lottery tickets and in-app purchases were 4 digit monthly expenditures….
So, I used to work for BofA as customer service. I would find these people all the time. Spending hundred even thousands a month on overdraft charges. Gold accounts had all service fees waived but there was a monthly fee to have the account if you didn’t maintain a balance of 10k. I don’t know if this is a thing anymore or not but the monthly fee to get OD charges waived was a huge money saver. Obviously stop overdrafting but a monthly fee is much cheaper.
How are the overdrafts occurring? If it’s due to a debit card, make them give up their debit card. By make, i mean use social engineering. Attempt to create a scenario whereby it is in their best interest to give it up and get a plain ATM card. The banks still offer them but you have to ask specifically. Is there physical bank branch nearby to them where they can get access to an ATM? Although it might still be possible to create an overdraft, at least when you’re physically in front of an ATM you can verify the balance before attempting a withdrawal.
Your parents aren’t merely bad with money. That’s a gross understatement. They are absolutely childish with money. This goes well beyond mere naivete and lack of sophistication. I had similar issues with my mom, but it was because of dementia, and didn’t happen until her 80s. At one point we had to strip her of banking privileges and bring her an allowance weekly. You’re going to need to use every tool at your disposal including exerting pressure where possible to get them to modify their behavior or you’re going to get sucked into their vortex.
My ex- would do this. LOTS of debit txns overdrafting. Need cigs? $35 (plus cigs). McDonalds? $70 (plus cigs and McDonalds). Big Gulp? $105 (plus cigs, McDonalds, and 7-Eleven)
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Turning off overdraft protection helped somewhat. Did it cause other issues? Yes. Was it still cheaper in the long run? Also, yes.
No great advice here, just commiserating with you — the most frustrating thing (if your parents are like mine) is that they’re just sitting around watching tv or doing other honestly trivial daily things that occupy their time. I mean, they’re not solving world hunger or managing 100 people and have no time. Yet they can’t be distracted for an hour from their watching of videos to understand the money they’re pissing away that could be fixed by just some simple steps.
I like this- https://www.mrmoneymustache.com/2012/04/18/news-flash-your-debt-is-an-emergency/
ÔÇ£Even if you are an absolute Beginner Consumer Sucka and your goal is still to consume the maximum amount of luxury products, you are still cheating yourself out of stuff just by running a consumer debt balance.
Every dollar you pay in interest to the credit card company is stealing dollars away that you could be using for more luxury purchases for yourself.ÔÇØ
Just swap out overdraft fees for interest payment and it applies.
So theyÔÇÖre using their income for overdraft fees ? Wow. I definitely recommend Charles Schwab- they donÔÇÖt have overdraft or ATM fees. Maybe print out and highlight all of the money theyÔÇÖre losing? Also, thereÔÇÖs a certain point when you learn thah parents donÔÇÖt listen and are usually set in their ways.
I used to do collections for a small credit union and we would have people like this periodically. They probably wonÔÇÖt change, but here is my suggestion. Have them call their FI and ask for as many fees back as possible. They should just be honest and beg for help. Then they need to have their overdraft protection turned off. If they say they want it turned off they might get even more fees returned.
My boss would try to give enough fees back to get the account to a positive number at the very least. After that she would offer the credit unions financial counseling service. Very few ever took her up on the service and most had their account wrecked in a year, which is unfortunate since this was a one time shot in the arm. But on occasion we would get someone who realized how bad things were and they changed. ItÔÇÖs worth a shot.
The only reason why SSA wouldnÔÇÖt pay is, they have been overpaid so are withholding the checks until they are paid back. Make your parents go to a financial class like total money makeover. You canÔÇÖt make them do anything, you can only suggest things. I completely stay out of my parents financial situation because they donÔÇÖt listen.
Wow…your parents are absolutely horrible with money. You should stop giving them money.
You need to stop adding to their addiction. You are generous to help pay for auto insurance and phone payments. It would be better if you paid those bills directly to the vendor so 100% of the bill is paid. They will never change as this is a game they have played for far too long.
Many banks have overdraft programs where it links to their savings for no fees. ThatÔÇÖs a start.
Then, maybe sit down with a budget with them.
Isn’t there a setting in the account that tells the bank to reject any POS payment that can’t be covered? This is usually something you can turn on and off. It’s one of the first things they ask when you set up an account: “If you don’t have the funds in your account, don’t worry about it! We’ll cover charges up to $X for you! (For a small fee.) Aren’t we a great bank? Do you want us to keep doing that? Be aware, if you say no, you might not be able to pay for things!” Contact customer service and make sure they can’t overdraft when making purchases with their debit cards. I’m not sure it will help for things like automatic bill payments, though.
You can get your mom to remove overdraft protections so their purchases are rejected then you can set up an automatic notification so you are aware of their spending.
Thats why they say, its expensive being poor.
I mean get them on the personal finance flow chart or a Dave Ramsey type plan to get over this habit. You need to confront them on it for sure though.
I will pray for you!! holy shit I get fucking pissed when I had a couple over drafts in college now never and my parents holy shit they would berate me for overdrafts that is throwing your money away and you can usually sign up for over draft protection??? wtf wow high % pay advances are the work of the devil to keep you paycheck to paycheck …..I shall pray
They need to change the settings on their account to deny charges instead of overdrafting.
Maybe their need a conservatorship
What’s the plan when they cannot work anymore? Super scary 1100 a month. save a room in your house
#RUN
Don’t walk just run! You are being dragged down by a sinking ship. There’s no lifeboat and you can’t teach them to swim. All you can do is save yourself and that means cut off everything with them and focus 100% only on making sure you’re never in that situation.
I mean you can try to conversar├® with them and bring this to their attention and offer help. If they refuse just let them be. You can not control other people. Some people simply canÔÇÖt be influenced to change.
In the meanwhile set the account to not allow an over draft. Set it to do declines.
I’m sorry OP. At their age, you aren’t going to suddenly fix anything.
Their retirement is going to cost you a lot of money.
my parents use to do this every year and to this extent. it was absolutely frustrating. there was nothing they would do to fix it either. this is why i get mad at myself if i only do it once or twice a year. i’m not perfect and it does happen but nowhere near as bad as my parents.
Are they open to your help? Would they tell you where everything stands and let you have access to their accounts? IÔÇÖve started using YNAB (aggregation/budgeting software) for my parents. You can get access for 5 users with one paid account and I use it for myself already. ItÔÇÖs a bit of a learning curve if you havenÔÇÖt used it before, but a lot of people really like it.
I have my parents accounts linked and then went through a year of statements and put in all recurring payments and estimate other expenses. Then I set up all the recurring payments and can check and see if theyÔÇÖre going to have enough in checking to cover. Thankfully my parents do have a small retirement account, so I can transfer out of there as needed. Your parents would need to be prepared to not spend more money than they have, which it sounds like might be a hard shift for them.
This approach only works if you can engage your parents and get them communicating with your about their spending. I wouldnÔÇÖt do this in half measures. You lending them money wonÔÇÖt fix things, as IÔÇÖm sure you know.
Short of them being willing to work with you (or maybe a financial counselor, but I wonder if theyÔÇÖd be actually able to engage with that) you may not be able to save them from themselves. But based on the numbers youÔÇÖve shared it sounds like they may be able to pull out of this if they could stop digging the hole deeper.
Maybe you could start by asking them, ÔÇ£how much do you think you spent on overdraft fees this month?ÔÇØ Then go to ÔÇ£how much for this year?ÔÇØ Then show them the math. Their guesses will probably be ridiculously low, and they will probably be shocked by the total amount.
Since they probably donÔÇÖt have any clue about how much theyÔÇÖre spending on this, just making them think about it is a start.
If the Social is direct deposit she should contact the Social Security Administration to find out what’s up.
If it’s mailed checks you should request duplicates.
Your life is going to be ruined if they go into assisted living. It’s too late to fix this. Might as well have them move in with you right now.
Once this account is at $0 with no pending transactions, request from the bank that this account be closed and a new one be established. On the new account, have them turn off overdraft so nothing will bounce. Also switch over to using debit cards rather than routing/account #. If some companies require routing/account, get a cashiers check so it instantly deducts. No auto-pay going forward either. ItÔÇÖs a nuisance but they should start a new account from scratch and learn healthy spending habits aka living within their means. Some financial counselors have a fee, though there are lots of informative videos online for free