Has my mate got a leg to stand on - abuse of authority?

ahrimaniac

Evening all

Trying to help a mate out here. To cut a long, long story short - he has a personal account with HSBC and was involved in a road traffic accident a few years ago. When this happened, he gave his ex a letter of authority for his personal account so that he could draw money to pay bills etc whilst he was on the mend. It's stayed like this for a couple of years, but recently, the 'friend' has been going into the bank, taking out amounts like £600, £300 here and there - not using a card or a cheque but apparently he can do it because he has that magic letter of authority.

My friend, *stupidly*, did not really realise until there's hardly anything left in his account - all frittered away on itunes and other things too. There's life insurance, car insurance, mobile phone contracts - he trusted him to not take advantage and kapow, he has done.

We've sat here tonight and gone through the bank statements and we're talking in the sum of £40000 gone unaccounted for.

My guess is, because there was a letter of authority, nowt can really be done bar chalking it down to sheer stupidity on my friend's side and sheer greed on behalf of his friend, but I might be wrong?

He's going to speak to his bank tomorrow but just wondered what people thought. He's absolutely heartbroken - he's one of life's soft touches evidently and wouldn't think anyone could do this. I know he should have been more careful but his mum and dad both died this year, and he's had all that to sort out too. Maybe that explains his not checking things, who knows.

Any advice welcome!

Paul_01

Go to the Police.

ahrimaniac

Definitely think that's the next step, although I can't see them doing anything thanks to the authority letter.

meer53

If the ex had a third party mandate to use the account for this purpose then i don't think the Police will be interested. Did your friend not monitor his account ? Where is the ex now ?

Paul_01

You may not think they will be interested, but we don't know the full facts. The only advice to offer is to go to the Police and see what they make of it.

stclair

ahrimaniac wrote: »

Definitely think that's the next step, although I can't see them doing anything thanks to the authority letter.

If an authority letter had been issued the bank may say the onus is on the account holder to revoke the authority should the circumstances change. I would contact the police/bank and see what they say :cool:

ahrimaniac

Well - he's off to the bank tomorrow to talk to them, and then the police - will give an update - thanks all!

poppasmurf_bewdley

I think the police will definitely be interested. Just because the 'friend' has the authority doesn't mean he can.

A company accountant may have permission to make out and sign cheques for the company, but NOT into his own personal account.

meer53

poppasmurf_bewdley wrote: »

I think the police will definitely be interested. Just because the 'friend' has the authority doesn't mean he can.

A company accountant may have permission to make out and sign cheques for the company, but NOT into his own personal account.

The OP says the ex has been withdrawing cash though. Very difficult to trace where thats gone.

Paul_01

poppasmurf_bewdley wrote: »

I think the police will definitely be interested. Just because the 'friend' has the authority doesn't mean he can.

A company accountant may have permission to make out and sign cheques for the company, but NOT into his own personal account.

This is one of many possibilities which could apply, hence why the only course of action is to report the matter to the Police and see what develops.

I'd be interested to hear what happens on this.

Paul_01

meer53 wrote: »

The OP says the ex has been withdrawing cash though. Very difficult to trace where thats gone.

With all due respect, we can only guess whats gone on. It is impossible to say with an certainty that the person cannot be convicted of offences, so giving reasons as to why the Police may or may not be able to investigate is unhelpful. The person concerned may be known to the Police for similar offences, they may admit to theft when questioned etc etc.

All we can do on this forum is advise the OP to report the matter to both the bank and the Police and let them decide what course of action to take based on collecting all the facts.