Legal Question in Elder Law in California

My father is 83 and not in good health. He had a stroke in 2006 and has suffered mental loss since then. About a year ago, I became his power of attorney as he ran into financial difficulties. After ordering his credit report, I noticed he borrowed $6,500.00 from a bank (Citi-Financial) in 2008. I asked him about it and he doesn�t know what he did with the money and my mother didn�t even know about the loan either. As collateral, the bank has a lien on his van (which is worth almost nothing). The interest rate is actually 25.99% for a $6,500.00 secured by his van. The balance remaining is just under $4,000. As of November, 2010 his drivers� license was taken away and his medical bills are mounting because of a recent heart attack. He doesn�t need the auto insurance anymore. I went to the branch and showed the branch account manager the power of attorney and asked if she would consider taking the van as full repayment and she turned down the offer. I mentioned elder abuse claims for abusive loan practices, and she stated that was the interest rate they were charging everyone three years ago for secured loans (Of course, I have no way of verifying that). She was willing to settle the account at 75%. But, my parents have no savings and my mother is about to have a total knee replacement and will be in the hospital/rehab for a while. The only thing she was will to cooperate with was removing the automatic monthly withdrawals from his checking account. She would not lower the interest rate. The only other property my parents have is the house their living in and it has a mortgage, and it's in a trust.

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