Why won’t NS&I accept my Power of Attorney to open an account?
NS&I accepted and processed a cheque worth £240,000 that was sent on behalf of my 97-year-old father. However, they later refused to acknowledge the authority granted by the Power of Attorney.
- A reader expressed interest in initiating NS&I Income Bonds for his elderly father.
- However, due to numerous delays, NS&I accepted the £240,000 but postponed the procedure.
- NS&I apologized and resolved the problem, subsequently providing a payment of £150 after intervention from This is Money.
I possess the legal authority known as Enduring Power of Attorney (EPA) for my aging father, who currently resides in a care facility.
My father’s house was sold in mid-July 2023 and I wanted to invest the proceeds in National Savings & Investments (NS&I) Guaranteed Income Bonds to pay for his care home fees.
I contacted NS&I and they informed me that they would send an application form. During our conversation, we talked about the EPA, and the adviser mentioned that I could submit a signed and witnessed copy of the document by a trustworthy individual.
I received a letter a few days after, which mentioned that the forms were included, but they were not. Consequently, I contacted the helpline and was informed that I could obtain them by printing from the internet.
There was a lack of clarity regarding the requirements for the Power of Attorney document to initiate the opening of Guaranteed Income Bonds on behalf of his father (stock image).
Upon further examination, it was revealed that the documents required a meticulously worded signature on each page from either a solicitor or the beneficiary (in this case, my father), as a Power of Attorney document had replaced EPA. Failing to meet this requirement would necessitate sending the original document to NS&I.
My father, who is 97 years old, has severe visual impairment and can only manage to write his signature. Therefore, he would have been unable to write the necessary text on multiple pages.
I sent the original EPA document on 24 July, reluctantly asking for its prompt return.
I called NS&I to inquire about the status since I hadn’t received any updates. They informed me that they had not yet reviewed the application letter.
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On August 7, the Power of Attorney document was posted back to me with a letter saying that it was incomplete, needed to be signed on each page, and sent to NS&I before they would proceed.
Since I have already transmitted the initial document, I am unsure of any further steps or how to proceed with the application.
Furthermore, upon reviewing my father’s bank statement, I uncovered that NS&I debited £240,000 from the account on July 26th, which happened to be the day following their receipt of the application.
I was informed by the helpline that NS&I could not locate the application and the advisor was unable to determine the reason for the rejection of the Power of Attorney. Can you please assist me with this matter?Via email
Helen Kirrane of This is Money replies:It appears that you have been given contradictory information throughout every step of this process.
You have EPA for your father, allowing you to manage his financial affairs as he became unable to do so.
The Lasting Power of Attorney replaced EPA in 2007 in England and Wales. However, if you created and signed an EPA prior to October 1, 2007, it should remain legally acceptable.
If you have EPA over someone, NS&I enables you to register and handle their NS&I savings on their behalf.
I inquired with NS&I about the status of the application to initiate Guaranteed Income Bonds for your father.
NS&I informed me that they sent a letter to Mr. B on July 27th, notifying him of a problem with the Power of Attorney.
However, no specific details were provided regarding the precise issue with the document.
Afterwards, you made multiple attempts to reach the NS&I call center, but received contradictory information.
The main issue, which was not communicated to you, was that part of the Power of Attorney document was missing – this was why NS&I was unable to accept it in the first instance.
After further examination of the document, it was determined that it could be approved, but under the condition that you, as the attorney, have the authority to represent your father’s interests in this matter.
NS&I should have provided clearer information regarding the specific issue and the necessary actions to be taken.
You mentioned that you had never previously been entrusted with the task of transferring nearly 250,000 pounds for investment, and you have never felt this concerned about the status of your father’s finances.
It must have been quite distressing and perplexing when NS&I accepted the £240,000 cheque but stated that the application could not proceed due to an issue with the EPA.
When you reached out to me, NS&I had held your father’s money for a duration of three weeks. During this period, you expected the money to be in the account, accruing interest at a rate of £250 per week.
The statement from an NS&I representative includes the following information:We apologize for the quality of service Mr. B encountered while attempting to open an account for his father.
This has fallen below our usual standards and, in recognition of this, an apology payment of £150 has been issued. The investment in Guaranteed Income Bonds has been backdated to July 27 and will earn interest from this point.
The Income Bonds account has now been opened, and the sale will be backdated to July 27 with no loss of interest.
