War hero Tony, 90, can’t get his £10,000 life savings because the building society thinks his signature’s too shaky
TONY HOWARD knows what it is like to lose his freedom. In 1940, during World War II, he was on board a navy vessel sunk by a German warship in the atlantic. he then spent five years as a prisoner of war.
Today, as a 90-year-old, with his health failing, but his mind still sharp, he considers keeping control of his finances a matter of dignity.
But like so many elderly people, he has found his fight for independence blocked by a local bank or building society.
For six months, Mr howard has battled with Yorkshire Building Society to get back £10,000 sitting in a savings account. he desperately needs the money to pay his £850-a-week bills for 24-hour care.
But the society refuses to hand over his cash because it can’t recognise his signature — which has changed as he has become progressively more frail. The Yorkshire demands that Mr howard, who is housebound, should visit his local branch 12 miles away in Chalfont St Peter, Buckinghamshire, to prove his identity. alternatively, they want his 62-year-old son, Colin, to sign on his behalf.
Mr howard set up a power of attorney — which would hand control of his finances to his son — five years ago.
But he wants to stay independent and simply asks the Yorkshire to accept any number of forms of identification he has sent to them, or a branch member to pop over to his house in Rickmansworth, hertfordshire.
The Yorkshire refuses. The case has been to the independent Financial Ombudsman Service, who has found the Yorkshire were not at fault. The howards are appealing.
‘I realise we may seem overly critical, but for me this is a point of principle,’ says Colin howard, a farmer.
‘Why should my father be forced to resort to a power of attorney before he deteriorates to the point of no choice?
‘What if he, like millions of other people, didn’t have a relative or friend who could look after his affairs — would he be told he would not be allowed the money because his signature is different? It is completely blockheaded.’
a spokesman for Yorkshire BS says: ‘as Mr howard’s signature differed significantly from his passport signature and his original signature, we asked him to visit his local branch or to register the power of attorney on his account that his son already had.
‘We had difficulty contacting Mr howard over the phone. he has since given us permission to do this and we are seeking a solution.’
The plight of Tony howard, who helps to care for his wife Phyllis, who suffers from dementia, is one faced by millions of pensioners and their loved ones every year.
a Money Mail investigation has found that families who are handed control of an elderly relative’s affairs are met with widespread incompetence at Britain’s banks and building societies.
Banks are supposed to provide assistance to those who are mentally capable, but have disabilities. In practice, though, many, in particular the elderly, are forced to hand over their accounts — and with it their independence.
and this can be just the start of the problem.
Claire Davis, who sits on the board of directors of Solicitors for the elderly, says the organisation is inundated with 5,000 complaints a year from desperate relatives struggling for help after their power of attorney application is turned down by their bank.
Often, the situation is made worse because of branch staff’s insensitivity. She says: ‘We are a long way from having a banking system that understands power of attorney and with staff who deal with it sensitively.’ Our own probe discovered relatives face huge delays for simple transactions; a lack of understanding of the rules; many are forced to pay for care out of their own pocket because of red tape; and there is little or no understanding of individual needs.
a lasting power of attorney can be set up while people have sufficient mental capacity to appoint the attorney. This is normally a close friend or relative.
It grants them powers to make decisions about their care and treatment, as well as control of their finances. Once drawn up, both parties can manage the account. Later on, if the original accountholder becomes incapacitated, the lasting power of attorney must be registered with the Government Office of the Public Guardian. at this point the relative has sole control of the person’s affairs. They can transfer their savings and use any current account or credit card they have. an estimated 200,000 people turn to power of attorney every year on behalf of loved ones. There are six million people caring for spouses, parents or other relatives.
a frequent complaint is that bank staff don’t understand the rules, and make extra demands. Usually they ask for extra documents on top of a certificate of authority granting the power of attorney, such as a letter from a doctor or solicitors. Frequently, they are made to answer their relatives’ security questions — when they should be asked to answer their own.
Jan Caldwell, 65, from Kilmarnock, was shocked to find £13,000 missing from her mother’s bank account for which she held power of attorney.
her mother Sheila Parr, 89, was in a care home on Merseyside. The only usual withdrawals were for payments to the care home and a small amount of shopping.
Mrs Caldwell rang Bank of Scotland, but was told there was no record of her power of attorney.
The bank returned the cash. She claims a staff member told her the problems had been caused by the computers not updating properly.
‘The system seems a complete shambles — mentioning the name Bank of Scotland to me is like waving a red rag at a bull,’ she says. Lloyds says it has no record of Mrs Caldwell making complaints about her power of attorney.
It says it is planning to roll out a new scheme at the end of this year, which will allow customers to book appointments in bank branches to register power of attorney and immediately set up internet and telephone banking.
Trained staff in a call centre will be on hand to iron out problems.
Sue Benjamin, 50, from harrow, was forced to spend hundreds of pounds in legal fees after her bank refused to accept the power of attorney she had put in place for 100-year-old valda Jones, who used to be her nanny.
Ms Benjamin had tried to move a £52,000 bond to a current account.
‘Santander seemed to be doing everything to delay the process,’ she says. ‘First, they said I did not have power of attorney, even though I had opened the bond. They made me go into the branch to re-register the power of attorney.
‘Then a week later they sent me a letter demanding her certificate or a letter from her GP explaining why she could not sign.’ It took three months to move the bond.
Santander says Ms Benjamin’s power of attorney had not been set up correctly and this was why she had to re-register the documents. It says it has apologised for the inconvenience she experienced and offered a goodwill payment.
The trade body the British Banking association says banks should not force people to use power of attorney just because they are sick and elderly if they are still mentally competent. Instead, the bank should find a way around the problem.