Bank account and lost capacity holder

roxy28

What happens to the bank account when the holder has lost capacity without a LPA, once informed will the account be frozen? It has one standing order going out each week and 2 direct debits going out each month.Will they carry on for a limited period or will they be stopped straight away. Any one had experience of this and what happened?.

opinions4u

Have you asked the bank concerned?

roxy28

No i want to see if anyone has had this happen to someone they know before informing the bank.

opinions4u

roxy28 wrote: »

No i want to see if anyone has had this happen to someone they know before informing the bank.

Okay, at least name the bank concerned then. Different banks will treat things in different ways.

roxy28

Thanks for the reply The bank is hsbc,looking at the website it seems court of protection is needed.

henm2

If the bank becomes aware that one party to an account has lost mental capacity to run the bank account they will freeze it.
HSBC will allow the attorney on a Last Power of Attorney (court of protection registered) to operate the account.
The trouble with LPAs is if not done in advance of the situation arising it can take several weeks to get set up and transactions on the bank account will be frozen pending receipt of a copy of it. This is why every adult should seriously consider getting a LPA arranged in case of need.

roxy28

To late for LPA so you are saying standing orders and direct debits will stop going out when account is frozen?

jonesMUFCforever

Maybe; maybe not - if the direct debits and standing orders are longstanding they might let them be debited but most probably all other withdrawals such as cheques and cash would be stopped until a court of protection order was made.

The bank has a duty to act in the best interest of its customer so if the payments are for say home insurance or perhaps a care home payment they would be stupid to stop them.

roxy28

[QUOTE=.

The bank has a duty to act in the best interest of its customer so if the payments are for say home insurance or perhaps a care home payment they would be stupid to stop them.[/QUOTE]

Banks and misselling to its customer is looking after their best interest then. lol. So cant be certain if payments are frozen and informing the bank can cause problems until a deputyship is in place,which i believe can take around 6 months.

jonesMUFCforever

Roxy you have an attitude problem with banks - fine no skin off my nose - up to you where you go from here.

JuicyJesus

roxy28 wrote: »

Banks and misselling to its customer is looking after their best interest then. lol. So cant be certain if payments are frozen and informing the bank can cause problems until a deputyship is in place,which i believe can take around 6 months.

Mis-selling has absolutely nothing to do with the matter at hand.