Poor knowledge of the system of lasting powers of attorney (LPA) has left many pensioners seeking long-term care facing delays and other problems, solicitors say.
Solicitors for the Elderly (SFE), a specialist association of lawyers, says banks have been refusing to accept the authority of people registered as LPA for a client, relative or friend.
This, SFE members say, has led to delays in arranging and processing payments for long-term care.
The SFE has compiled a list of common problems along with the Office of the Public Guardian and the Law Society, and has met with the British Banking Association, Barclays, Northern Bank, Lloyds Banking Group, RBS, HSBC and the Building Societies Association to discuss the problem.
Representatives from the banks have admitted there is a ‘lack of knowledge' about LPA legislation amongst their staff.
The lack of awareness around LPA has led to banks demanding to see irrelevant documents or refusing to accept others, delays in obtaining passbooks and cheque books, inappropriately linking personal account details of professional deputies with accounts of vulnerable clients, and banks issuing incorrect information to the public.
SFE has produced a letter for clients who act as delegated decision-makers for friends or relatives, which explains different types of powers and authority and can be given to banks.
Chris Horlick, managing director for long term care, Partnership (pictured), says: "It is important any confusion surrounding the rights of a power of attorney and their relationship with banks must be resolved as a matter of urgency.
"People with powers of attorney typically are responsible for the financial affairs for most people entering into residential care. This is a stressful time for all members of the family at a time when people with powers of attorney are seeking to make important decisions about which care home to place their relative in and how to fund their care.
"Any additional stress caused by delays or failure to receive the right level of service is an unwelcome and unnecessary additional burden for them."
