Bank Refusing to Accept an LPA: Your Rights and How to Escalate
A validly registered LPA must be accepted by banks under the Mental Capacity Act 2005. If a bank refuses, the escalation path runs: bank complaint → OPG helpline → Financial Ombudsman Service → Court of Protection if necessary.
Escalation Path: Bank Refusing an LPA
Ask for written refusal reasons
Bank must give a specific reason — 'not our policy' is not enough
Quote MCA 2005 and request specialist
Ask for the bank's vulnerable customers or power of attorney team
Submit a formal written complaint
Bank must respond within 8 weeks (FCA rules)
Contact OPG helpline
0300 456 0300 — OPG can intervene with institutions acting improperly
Financial Ombudsman Service
Free to use after 8-week bank complaint period; can award compensation up to £415,000
Court of Protection
Last resort — apply for direction requiring the institution to comply
Frequently Asked Questions
Can a bank refuse to accept a Lasting Power of Attorney?
A validly registered LPA is a legal document with statutory force under the Mental Capacity Act 2005 — banks and other financial institutions are required to act on it. A bank cannot lawfully refuse to accept a registered LPA without a legitimate reason. Legitimate reasons for declining a specific instruction include: the instruction would put the donor's funds at risk, the attorney appears to be acting outside their authority, or the attorney's behaviour raises safeguarding concerns. Refusing simply because the bank has not seen the LPA before, or insisting on using its own internal form instead of accepting the registered document, is not a lawful reason for refusal. However, many banks routinely add unnecessary requirements such as requiring their own LPA registration form to be completed or insisting attorneys visit a branch.
What should an attorney do when a bank refuses to accept an LPA?
Step-by-step escalation: (1) Ask the bank to explain in writing exactly why it is refusing — they must give a specific reason; (2) Quote the Mental Capacity Act 2005 and the bank's own obligations as a third party relying on an LPA under s9(4) MCA 2005; (3) Ask to speak to the bank's vulnerable customers team or power of attorney specialist — most major banks have dedicated LPA teams; (4) Send a formal complaint to the bank in writing — banks must respond to formal complaints within 8 weeks; (5) If the bank does not resolve the complaint satisfactorily, escalate to the Financial Ombudsman Service (FOS) — the FOS handles LPA-related disputes and can award compensation; (6) Contact the Office of the Public Guardian (OPG) helpline (0300 456 0300) — the OPG can intervene with institutions that are acting improperly; (7) As a last resort, consider applying to the Court of Protection for a direction requiring the institution to comply.
What are common reasons banks give for refusing LPAs and are they valid?
Common bank refusals and whether they are legitimate: (1) 'The LPA is not registered' — valid reason. Only a registered LPA (stamped by OPG) has legal effect. An unregistered LPA cannot be acted on; (2) 'We need to see the original' — banks may insist on seeing the original or a certified copy; the attorney should attend a branch with the original and request that it is returned; (3) 'You need to complete our internal form' — not a lawful requirement. Banks can ask for the information but cannot require their own form instead of accepting the registered document; (4) 'We cannot process this remotely' — restrictive but often not illegal. Many banks do require an in-branch visit first time; (5) 'The LPA is out of date' — not legally valid: a registered LPA has no expiry date. It remains valid until revoked, the donor regains capacity and revokes it, or the donor dies; (6) 'The attorney is restricted by the LPA conditions' — valid reason if the restriction is genuine: the bank should check the LPA's instructions and restrictions carefully.
Can the bank require attorneys to attend in branch to set up LPA access?
Many banks do require an in-branch visit for the initial registration of LPA access — this is not specifically prohibited by the MCA 2005, and most banks treat the first visit as a security and identity verification step. However, the FCA's guidance on vulnerable customers (CONC 8 and FG21/1) requires firms to make reasonable adjustments for customers who cannot easily attend a branch in person — for example, where the donor has severe dementia and the attorney lives far away. The OPG has produced guidance for financial institutions, and major banks have signed up to voluntary best practice standards. If in-branch requirements create significant hardship, this should be raised as part of the formal complaint.
What can the Financial Ombudsman do about a bank refusing an LPA?
The Financial Ombudsman Service (FOS) has jurisdiction over complaints about how banks deal with LPAs, including refusals to accept a valid registered LPA, unreasonable delays in setting up LPA access, failure to follow the attorney's instructions, and failure to make reasonable adjustments. The FOS can: (1) require the bank to take or stop an action; (2) award financial compensation (up to £415,000 as at 2026 for eligible complaints); (3) publicise poor practice. Complaints to FOS are free. The attorney must have first made a formal complaint to the bank and waited 8 weeks for a final response (or received a deadlock letter) before the FOS will accept the case. The FOS does not charge a fee and the process is accessible online at financial-ombudsman.org.uk.
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