Refusal to open a savings account under a Power of Attorney

echos_mum

I am really cross as, for the second time I have found that I cannot access a good fixed rate account for my friend for whom I hold PoA because of the PoA! This is “Saga Savings Platform Powered by Flagstone”, which has replaced Saga Savings, which DID allow me to save with them under the PoA.
They could only say that they don’t accept accounts under a Power of Attorney, but no reason. I suggested that it was totally discriminatory. It excludes people who, for whatever reason, cannot deal with their own financial affairs, but otherwise should have exactly the same advantages as any other individual.
I now have the unenviable job of trying to find another decent rate for her funds which doesn’t discriminate, and isn’t tied to a bank where she already has funds, so they are protected under FSA rules.
DOES ANYONE KNOW HOW THE DISCRIMINATION LEGISLATION WOULD LOOK AT THIS?
HAS ANYONE EXPERIENCED THE SAME, AND HAVE ANY SUGGESTIONS ?

eskbanker

echos_mum said:

DOES ANYONE KNOW HOW THE DISCRIMINATION LEGISLATION WOULD LOOK AT THIS?

I don't believe it would - the Equality Act 2010 prohibits discrimination based on certain protected characteristics:

to protect people from discrimination on grounds of:

• race
• sex
• sexual orientation (whether being lesbian, gay, bisexual or heterosexual)
• disability (or because of something connected with their disability)
• religion or belief
• being a transsexual person (transsexuality is where someone has changed, is changing or has proposed changing their sex – called ‘gender reassignment’ in law)
• having just had a baby or being pregnant
• being married or in a civil partnership (this applies only at work or if someone is being trained for work)
• age (this applies only at work or if someone is being trained for work)

https://www.gov.uk/government/publications/equality-act-guidance/individuals-a-summary-guide-to-your-rights-html

xylophone

https://www.closesavings.co.uk/personal/help-and-support/power-of-attorney


https://www.closesavings.co.uk/personal/savings-accounts/fixed-rate-bond       might suit.

Barkin

eskbanker said:

I don't believe it would - the Equality Act 2010 prohibits discrimination based on certain protected characteristics:

to protect people from discrimination on grounds of:

• disability (or because of something connected with their disability)

My wife has POA for her dad, who has dementia. 

Having been dealing with this for a couple of years now, I'd suggest that it's most definitely a disability. 

Whether the law/legislation takes the same view, I've no idea. 

friolento

Savings providers are not compelled to provide everything that is possible to provide. POA accounts require special administration that a provider can decide not to offer. There are, however, a fair number that do.

https://www.moneysavingexpert.com/banking/best-banks-for-power-of-attorney/

unforeseen

Barkin said:

eskbanker said:

I don't believe it would - the Equality Act 2010 prohibits discrimination based on certain protected characteristics:

to protect people from discrimination on grounds of:

• disability (or because of something connected with their disability)

My wife has POA for her dad, who has dementia. 

Having been dealing with this for a couple of years now, I'd suggest that it's most definitely a disability. 

Whether the law/legislation takes the same view, I've no idea. 

There doesn't need to be a disability involved in POA. 

eskbanker

Barkin said:

eskbanker said:
I don't believe it would - the Equality Act 2010 prohibits discrimination based on certain protected characteristics:

to protect people from discrimination on grounds of:

• disability (or because of something connected with their disability)

My wife has POA for her dad, who has dementia. 

Having been dealing with this for a couple of years now, I'd suggest that it's most definitely a disability. 

Whether the law/legislation takes the same view, I've no idea. 

It would seem to, yes:

https://www.gov.uk/when-mental-health-condition-becomes-disability
https://www.gov.uk/definition-of-disability-under-equality-act-2010

OP simply referred broadly to "people who, for whatever reason, cannot deal with their own financial affairs", but yes, fair to say that there will be some scenarios that do fall within the above definitions.

Barkin

unforeseen said:

Barkin said:

eskbanker said:

I don't believe it would - the Equality Act 2010 prohibits discrimination based on certain protected characteristics:

to protect people from discrimination on grounds of:

• disability (or because of something connected with their disability)

My wife has POA for her dad, who has dementia. 

Having been dealing with this for a couple of years now, I'd suggest that it's most definitely a disability. 

Whether the law/legislation takes the same view, I've no idea. 

There doesn't need to be a disability involved in POA. 

I know that! 

Barkin

eskbanker said:

Barkin said:

eskbanker said:
I don't believe it would - the Equality Act 2010 prohibits discrimination based on certain protected characteristics:

to protect people from discrimination on grounds of:

• disability (or because of something connected with their disability)

My wife has POA for her dad, who has dementia. 

Having been dealing with this for a couple of years now, I'd suggest that it's most definitely a disability. 

Whether the law/legislation takes the same view, I've no idea. 

It would seem to, yes:

https://www.gov.uk/when-mental-health-condition-becomes-disability
https://www.gov.uk/definition-of-disability-under-equality-act-2010

OP simply referred broadly to "people who, for whatever reason, cannot deal with their own financial affairs", but yes, fair to say that there will be some scenarios that do fall within the above definitions.

Thank you 👍      

TheBanker

As an individual, you'll not be able to get a bank to change their policy. They won't accept PoA customers because their systems and processes won't be set up to deal with them. They won't change their systems in response to one customer so it's not worth your time complaining. You would be better finding a bank who will welcome your friend as a customer.

However, if this concerns you, you could write to the FCA and your MP suggesting that this is resulting in people, some of whom will be vulnerable, being excluded from accessing financial services. It won't make any difference but you will at least feel like you've made your point. 

BooJewels

I recently posted this in another similar thread, so I'll just paste it here:

I had a look for a friend recently and I've now found my scrap of paper where I made notes at the time - Ford Money, as mentioned allow LPA accounts (fixes, ISAs and a flexible account), as do NS&I - but also Charter Savings Bank - but they say to ring them to discuss, as not all accounts can be - their easy access account is a minimum opening balance of £5k, paying 4.82% monthly (£50k = £200.83/month) and they have 1 year fixes paying a smidge more.  Shawbrook say they allow LPA accounts, but by paper application and I think Hodge Savings Bank might do too, as I think do Vanquis.  There will be others too of course, but those were ones I specifically looked at recently that met other criteria - like paying monthly.  There are also notice accounts too that usually pay a little bit more, but you need to give notice to be able to withdraw funds - Shawbrook offer a 45 days notice account that pays a little over 5% monthly.

You need (or the Attorney will) to read the T&C carefully for each account you're interested in, as the details vary and you'll need to ensure that they meet the required criteria.