Access to a relative's bank account

funkychick11

Hi all,

Just looking for some advice - ideally don't want to ask the bank as I don't believe the advisors will give the correct answer...

I have a relative who has multiple defaults on their credit report. Due to illness, I will need to have "access" to an account in their name. What I'd like to know - would this affect MY credit report? As in create a financial link between us? (make us financial associates)

Thanks

meer53

You have to have joint financial products to be financially associated with someone. What are you proposing to do to get joint access ? Why don't you believe you'll get the right information from the bank ?

funkychick11

meer53 wrote: »

You have to have joint financial products to be financially associated with someone. What are you proposing to do to get joint access ? Why don't you believe you'll get the right information from the bank ?

Fill in a (bank) form that allows me to put money in and withdraw cash, etc

Oh, no conspiracy theories - I just think that not everyone is fully informed on the correct rules (partly based on my reading of the MSE forums! )

xylophone

Ask the person to arrange a third party mandate with his bank?
http://www.dwp.gov.uk/docs/third-party-access.pdf

funkychick11

xylophone wrote: »

Ask the person to arrange a third party mandate with his bank?
http://www.dwp.gov.uk/docs/third-party-access.pdf

Yes I think that's what they're considering... it's just whether it would make us financial associates or not? It would not be a joint product - just a third-party mandate to their account

Kildare

Are you looking to have Power of Attorney, so that you can manage all their financial affairs for them?
https://www.gov.uk/power-of-attorney/overview

I wouldn't have thought this would affect your credit record, but I don't know for sure.

henm2

The best first thing to do would be to set up a third party mandate on the account. Usually the account holder and your self (with ID and proof of address) would go into the bank branch to set this up. The account is still the account holders and the mandate does not create a financial association with yourself.

You mentioned that the relative is currently ill and therefore that may delay setting up the third party mandate if they can not go into the branch with you.

More long term you may want to consider the setting up of a Lasting Power of Attorney.http://www.justice.gov.uk/forms/opg Again this would not create a financial association but would enable the account(s) to be still run by you even if the account holder became mentally or physically incapacitated provided the P of A has first been registered with the Office of Public Guardian (Court of Protection). Do not register with the bank until actually required as this would stop the account holder running their own account (Just rely on the third party mandate previously set up until such time as account holder incapacity sets in)
For more information see http://www.bba.org.uk/media/article/mental-capacity-act-new-bba-guide

funkychick11

Thanks all. It wouldn't become a power of attorney case any time soon as the relative wishes to keep control of their affairs.

So a third-party mandate sounds spot on!