Bank refusing power of attorney — your rights and what to do
A valid, registered Lasting Power of Attorney should be accepted by any UK bank, financial institution, or government body. Refusal or obstruction is a serious problem that causes real harm to vulnerable people and their families. You have rights — and there are clear steps to resolve this.
Why banks and institutions refuse LPAs
Refusals usually stem from poor staff training rather than legal objection. Common reasons families encounter include not recognising digital LPAs, demanding original documents when certified copies are legally acceptable, requiring the donor to attend in person despite loss of capacity, imposing additional internal requirements not required by law, and frontline staff being unfamiliar with how LPAs actually work.
What the law says
A registered LPA is a legal document under the Mental Capacity Act 2005. Banks and financial institutions are required to accept it. They may take reasonable steps to verify authenticity but cannot impose unnecessary barriers, fees, or delays. Refusal without proper reason may breach FCA principles of treating customers fairly — particularly where it harms a vulnerable customer.
Step-by-step: how to resolve an LPA refusal
- Step 1. Ask to speak to the branch manager or the bank's specialist Power of Attorney team. Most major banks have one — frontline staff often do not.
- Step 2. Send a formal written letter citing the Mental Capacity Act 2005 and requesting written reasons for the refusal within 14 days.
- Step 3. Complain to the Financial Ombudsman Service if a financial institution refuses without valid reason. The Ombudsman can require the bank to comply and award compensation.
- Step 4. Report to the Office of the Public Guardian. The OPG cannot force a bank to act but can record concerns and provide verification support.
- Step 5. Seek legal advice if the refusal is causing material harm or financial loss. A solicitor's letter often resolves issues that the family cannot.
Which institutions cause the most problems
The most common offenders are high street banks, HMRC, pension providers, life insurance companies, and the DVLA. Each has its own process — and each routinely fails to apply that process consistently. Build a paper trail from the first conversation: dates, names of staff, what was said, and what was refused.
HMRC and LPA — a specific problem
HMRC has its own process for registering an attorney and does not automatically accept a registered LPA from the OPG. The attorney must send a certified copy of the LPA to HMRC along with HMRC's separate authorisation form. Allow up to eight weeks for processing. In the meantime, HMRC will not communicate with the attorney about the donor's tax affairs.
Using the OPG's LPA verification service
The Office of the Public Guardian now operates a free digital verification service called Use a lasting power of attorney. The attorney generates a unique access code which the bank or institution uses to view a verified summary of the LPA online. This resolves most disputes within minutes — and is the fastest way to get an obstructive bank to comply.