When a Bank Wont Accept a Power of Attorney in California

Dealing with a situation where a bank refuses to accept a power of attorney can be frustrating and stressful when you are trying to manage the financial affairs of a loved one. In California, a power of attorney is a legal document that allows someone to act on behalf of another person in financial or legal matters. However, some banks may be hesitant to accept these documents due to concerns about fraud or liability. If you find yourself in this situation, there are steps you can take to address the issue:

1. Have the Power of Attorney Notarized

In California you can execute a Power of Attorney with 2 witnesses or by having it notarized. While either method of execution is valid, banks prefer notarized forms because they feel like it is less likely to be fraudulent.

2. Consider Using a Uniform Statutory Power of Attorney

Banks may be hesitant to accept a Durable Power of Attorney or Springing Durable Power of Attorney because they are effective upon incapacity of the Principal and they have no way of knowing whether or not the Principal is actually incapacitated. In order to avoid this, it is advisable to use a Uniform Statutory Power of Attorney because they are effective upon their execution so the Bank will not question whether or not the Principal is incapacitated.

3. Refuse to Use Their Power of Attorney Form

The bank WILL try to require you to use their Power of Attorney form which usually has indemnification clauses that they force you to agree to. DO NOT fall for this trap, by law the bank cannot refuse to honor a Power of Attorney because it is not on their form. Insist on using your own standardized form.

4. File a Complaint

If all attempts to resolve the issue directly with the bank fail, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) or the Office of the Comptroller of the Currency (OCC). These agencies oversee financial institutions and can investigate complaints related to the refusal to accept a power of attorney.

5. Seek Legal Counsel

If the bank continues to refuse to accept your Power of Attorney, seek legal council. A lawyer can explain to them the law, and if necessary threaten to file a suit or file suit in court. In the event that you are successful in proving the bank had no reason to deny you from using the Power of Attorney, not only will you get a court order forcing them to accept it but also they must pay your attorney fees!

If you need a Power of Attorney and want to be sure it will be accepted contact us now!