When someone close to you loses capacity or passes away, navigating the emotional toll is challenging enough. But for many families, the added stress of dealing with banks at a time when they need access to funds or support, can make things feel even harder.
The Financial Conduct Authority (FCA) recently looked into how well banks are handling Power of Attorney (POA) and bereavement cases. The findings show that while some banks are doing a good job, too many are still getting it wrong. And sadly, it’s often the people in the most difficult situations who are left waiting, repeating themselves, or struggling to be heard.
What is Power of Attorney (POA)?
A Power of Attorney is a legal document that allows someone you trust to make decisions on your behalf if you’re no longer able to – whether temporarily or permanently. There are different types of POA, but most people use a ‘Lasting Power of Attorney’ to give someone the authority to manage their property and finances, or their health and care.
Setting up a POA while you’re still well ensures that, if the time comes, someone can step in without delays or confusion. It’s a crucial part of future planning – and helps your loved ones avoid unnecessary complications when supporting you.
The current reality for families: where banks are letting people down
Whether you’re trying to support a parent with declining health or managing the estate of a loved one who’s passed away, you expect compassion and clarity from your bank at this tough time. But the FCA found that in many cases:
- Bank staff weren’t sure what steps to take, delaying access to money even when a POA was in place.
- Customers had to explain their circumstances again and again to different staff members.
- Online and app-based services were often not available for those acting under a POA, limiting access to essential tools.
- There was no clear path for escalating complex or urgent cases, like a mental health emergency or sudden loss of capacity.
This isn’t just about policy – it’s about how those policies are applied, and whether the people helping you are equipped to do so with empathy and efficiency.
The FCA’s message to banks: it’s time to step up
To improve things, the FCA has shared a guide with practical ways banks can do better. It includes suggestions to:
- Recognise death certificates electronically to speed up support.
- Train staff to understand vulnerability and respond appropriately, escalating when needed.
- Create better internal systems for handling urgent or unusual cases.
- Use data to anticipate customer needs and offer tailored help.
The message is clear: financial institutions need to do more, and do it better.
Planning ahead with a POA
The best way to avoid delays, confusion, or extra stress is to plan ahead. Putting a Lasting Power of Attorney or a will in place now means your wishes are clear and your loved ones are protected, whatever happens.
We know that legal matters around loss or incapacity are deeply personal, and that they often come at difficult times. That’s why we work closely with our clients to make sure everything is clear, carefully handled and as stress free as possible.
How Belcher Addison can help
If you’re acting under a Power of Attorney, dealing with a bereavement, or simply thinking ahead about how best to support your family, we’re here for you. We’ll guide you through your options, with no unnecessary jargon – just straightforward advice tailored to your individual situation.
At Belcher Addison, we’re committed to helping you make those important decisions with confidence. If you’d like to chat through your next steps, we’re just a call or message away.
