Financial companies are making life difficult for those acting as attorneys for friends or family who cannot make their own financial decisions.
A survey by the consumer group Which? of 1,530 people who have power of attorney to manage someone else’s financial affairs suggested that a third had struggled when dealing with banks and building societies.
A financial power of attorney is a legal document that allows a trusted person to manage your money if you no longer want to, or are unable to.
• Why you need a power of attorney now — even if you’re 20
Once a power of attorney has been registered with the Office of the Public Guardian — the government body that approves an application but which has a huge backlog of cases — the document must be registered with all the companies the person the attorney is acting for has accounts with.
Advertisement
The process is cumbersome and often requires multiple signed copies of the power of attorney document. Requirements can vary between banks and some accept online applications, while others require documents via post or in branch.
Which? found that some banks processed documents in a matter of minutes, while others took up to 15 working days. Attorneys complained of a lack of knowledge among banking staff and of being kept in the dark about their applications.
• The reality of probate: delays, mounting costs and heartbreak
Even once a power of attorney had been registered with a bank, attorneys said that managing accounts was often a challenge because of restricted access.
Attorneys rated Coventry Building Society, Nationwide and Yorkshire Building Society as some of the best high street banks to deal with for ease and speed of registering.
Advertisement
• What happens to debts when you die?
You can have financial power of attorneys or welfare power of attorneys, which are for health or care decisions.
There are two types of financial power of attorney — ordinary or lasting. An ordinary power of attorney allows someone else to manage your financial affairs for a temporary period, while a lasting power of attorney ensures that your wishes are upheld even if you lose mental capacity due to accident or illness.
