Joint Power of Attorney - Joint Access to Bank Account?

[Ian Curtis]

I am a signatory on mother's bank account and can transfer between her account and mine at the same bank. My sibling and I have Joint Enduring Power of Attorney for my now mentally incapacitated mother. My sibling insists on now having access to the account but I would rather not allow this. I presume the joint PoA means we both have to sign to allow sibling access to the bank account too.

Therefore can I legally just refuse to jointly sign and instead continue accessing the account as I have until now? Or would the bank be allowed to give my sibling access without my agreement?

There is a good reason why I was made the signatory by Mum and not my sibling. This is the same reason for which I am asking the above question.

 

[SamanthaJay]

I also am of the opinion that in the case of a joint Enduring POA, you both should be signing. If it's worded 'jointed and severally', then only one of you needs to sign.

 

[Ian Curtis]

I also am of the opinion that in the case of a joint Enduring POA, you both should be signing. If it's worded 'jointed and severally', then only one of you needs to sign.

Thank you Samantha. "Severally" was crossed out in the PoA form. That didn't even occur to me until you mentioned it.

 

[Ian Curtis]

Sibling managed to get Commonwealth Bank to remove my access to Mum's account (I hitherto had a link to it online from my Commonwealth Bank account). I pointed out the PoA was jointly not severally and that I understand that to mean no changes can be made without my joint signature but they disagreed regarding changing my access. Assets are now frozen. Only $10k but will be very awkward paying bills now.

I am hoping CBA were just being overly cautious until they verify with someone higher up in their legal team but the branch manager gave the impression the decision is final. I suppose I should go looking online for legal precedents.

 

[Ian Curtis]

I went back to the CBA and they refused give any reasoning other than that they sighted the PoA but even that reasoning I could not get them to put into writing.

• No letter had been sent out to inform me
• No letter would be sent out
• They refused to cite any laws or in-house rules.
• They even refused to put into writing their declining to give reasons

There is deliberately no explicit record of the event (ie the event of nullifying my signatory status) having happened. I have lodged a complaint with the Financial Ombudsman Service of Australia which will take a couple of day to be sent to the bank and then the bank will have 45 days to respond. Apparently they do have to respond in writing (unlike their treatment of me).

Should I bother putting updates here for future reference? Anybody reading this anymore?

 

[SamanthaJay]

I'm reading Ian. See I think I can see where the bank is coming from but I can also see what you are saying. I'm thinking that they are probably now of the opinion that they should not have given you access without the signature of your sibling as well - ie you are 'joint', from the start.

But you are coming from the angle that they have removed your access without your signature/permission to do so, and with only your sibling's permission.

I think they have done it at their own undertaking because legally, as 'joint', it should have had both your signatures to start with. Your sibling has just bought it to their attention and they have acted on it.

 

[Ian Curtis]

I am not sure what you mean by "from the start" Samantha, I was made signatory by Mum way before Mum had dementia or even created the PoA.

 

[SamanthaJay]

OK, sorry Ian, I understood your post to say that you were signatory since the POA was created.

In your case, I'm not sure what the outcome should be. I would definitely be interested to hear the outcome.

 

[Ian Curtis]

A bank representative responded to my FoS complaint. My request was was conveniently interpreted as my wanting "To be advised why the Bank has removed authority and access to your mother’s accounts". They repeated what I already knew: that my sibling presented a PoA and the bank considered this enough to remove my status as signatory and "I have now closed off your complaint".

What I actually requested in clear unambiguous point form was:

• Restoration of my signatory status along with online access to my Mother
• Written acknowledgement of the removal of my signatory access to my Mother's accounts
• Citations of laws applied
• Citation of in-house rules applied

There is also new evidence of questionable behaviour: my sibling had somehow been able to view Mum's bank account all along. Not that there were any secrets to be hidden but I have never heard of "viewing only" status for a bank account so it suggests foul play by the bank. This new information will be added to my appeal to the FoS regarding the dismissive response from the Bank.

I actually went to a lawyer last week. We talked about him writing a letter to the bank to hopefully influence their decision and I was to email all documents to him which I did immediately (with the "request read receipt" option). I did not hear back from him (not even the "read receipt") in the following seven days.

Finally I pointed out that the Bank had responded early (unfavourably) to my FOS query so we had missed the opportunity to write a letter. He sent me a lame one line email suggesting I appeal with the FOS against the Bank's response (well, duhhh... how much will I be billed for that?).

 

[Ian Curtis]

Within The Bank's Terms and Conditions I found:

4. Account operating authority
When you open an account, you are required to provide us with the following Account Operating Authority (‘the Authority’) details:
(i) all signatories who are authorised to operate the account, and
(ii) the method of operation, e.g. any one to sign, any two to sign, the Treasurer plus one to sign.

We will act upon this Authority until you vary or cancel it. If you wish to vary the Authority by changing (i) or (ii) above, or cancel the Authority, you must give notice in writing to the branch where the account is conducted.
[...]
This service when supplied to you as a consumer comes with a non-excludable warranty under consumer protection laws that it will be carried out with due care and skill and be reasonably fit for the purpose.

So maybe I should also make a complaint directly to the ACCC?