In April 2025, the Financial Conduct Authority, also known as the FCA, told banks and building societies to improve the ways they handle lasting power of attorneys or LPAs, with a particular focus on their vulnerable customers.
Why It’s Important
Setting up a power of attorney is often a stressful and emotional time for customers. When banks and building societies get it right, it can make a difficult time easier. However, failing to respond or provide adequate help makes a stressful situation worse. The FCA has asked banks and building societies to see where they can make changes to help these customers at an emotional time.
Lasting Power of Attorney
An LPA is set up so that a trusted individual or individuals can handle your finances and welfare if you are no longer able to make these decisions for yourself. There are a number of ways of setting this up, including through a solicitor or by setting up power of attorney online. Regardless of whether you set up your Power Of Attorney Online or through another method, if your loved ones need to activate it, it is likely to be an emotional time when they need support.
Common Problems
One problem people often face when involved in the power of attorney process is that they never get to speak to the same staff member twice. This often means repeating information, which may include sensitive or emotionally distressing information. Sometimes cases were delayed or even dropped due to problems with the IT systems. Another common problem is that there are often very limited options for attorneys to access the relevant accounts. In particular, online banking or app-based banking was often unavailable. It seems that this is due to banks’ and building societies’ failure to invest in these channels to make them fit for this purpose.
With an ageing population, the number of LPAs is increasing and likely to increase further. This makes it all the more important for banks and building societies to heed the FCA’s advice and look for ways to improve their services to handle these cases better.
