The internal affairs ministry on Monday called for efforts to address a possible rise in contract disputes involving private-sector services for the elderly, with a survey showing that nearly 80% of providers do not explain important parts of the contracts to users.
Various services are currently offered to the elderly who live alone, including assistance with shopping, hospital visits, acting as personal guarantors, conducting funerals and handling belongings after death.
But with no laws regulating such businesses and in the absence of government oversight, guidelines covering contract procedures and other rules are needed, the Ministry of Internal Affairs and Communications’ Administrative Evaluation Bureau said.
“As the number of elderly people who live alone grows, the need for services (to support them) is increasing. We have to make sure that the elderly can use services without anxiety and that the businesses develop soundly,” it said.
There are about 400 service providers nationwide, of which 204 cooperated with the survey, according to the bureau.
The results showed that while 90% of providers offered contract sheets to their clients, 79% failed to include essential information, such as fees and termination conditions in the documents.
Only 68% had a third party present at the contract signing, such as relevant facilities’ personnel or lawyers.
The bureau also warned of the need for fairness in light of the fact that some elderly people with dementia could use the services.
Among service providers, 77% said they collected advance deposits for their services. But with the survey revealing that some kept the money in office safes and the personal accounts of company representatives, the bureau called for rules to be created to manage such funds, noting the risks of misappropriation.