A new guidance framework has been issued to all banks and building societies in the UK to support people who manage the finances of a loved one because they lack the physical or mental capacity to do so themselves.
Thousands of people across the UK are currently managing accounts on behalf of friends or family, and can often face a number of challenges in doing so. The purpose of the new framework and its supporting consumer guide is to make the process easier and more consistent for carers and relatives at what can be a very difficult time.
The British Bankers Association (BBA) reports that 536,941 Lasting Powers of Attorney have been registered in the UK since 2007 to manage property and affairs, which includes the management of financial matters.
The framework has been developed jointly by the Office of the Public Guardian, the BBA and the Building Societies Association, working in collaboration with a number of other partners.
Anthony Browne, Chief Executive of the BBA, said: â Caring for a close relative can literally be a labour of love and carries its unique responsibilities and challenges, including managing someone elseâs finances. Each situation is different and the new guidance will help banks and building societies provide the right service with the least possible stress and inconvenience to the customer at what can be a very difficult and traumatic time.â
The new guidance has been welcomed by consumer organisation Which? Executive director Richard Lloyd commented: â We have found evidence of bank staff too often giving incorrect or inconsistent advice to people who are managing the financial affairs of others, making their lives unnecessarily difficult and frustrating. Having power of attorney should not have to be so stressful.â
