Can a Bank Decline a Power of Attorney?

A power of attorney, or POA, serves as a tool to utilize when a person either cannot or doesn't wish to make decisions regarding some or all of his affairs.

Powers of Attorney

Created to allow a third party limited or unlimited control over another person's interests, POAs are used at law firms, medical treatment facilities and financial institutions. Typical scenarios necessitating a POA include an elderly person who can't make decisions on her own, someone with mental illness or a person temporarily taking care of his spouse's affairs.

POAs in Banking

A financial institution typically only does business with or provides information to an account holder. Some banks only honor a bank-generated POA form, USLegal.com states.

Reasons for Rejection

A financial institution may decline a POA if the account holder at the time of signing already lacked the capacity to make a decision regarding his affairs. If the bank suspects coercion, or the designated third party refuses to provide enough information, it may reject the POA.

Considerations

The decision to grant POA ranks as significant and, if obtained fraudulently -- such as by forging a signature or forcing a person to sign -- could have serious repercussions, including fines and imprisonment, depending on state and local statutes.

References

• Legalzoom.com: Powers of Attorney
• USLegal.com: Can A Bank Refuse to Accept a Power of Attorney?
• American Bar Association: Durable Power of Attorney Abuse: It's a Crime Too