Bank account authorization and loan.

April 3, 2018 A power of attorney to a bank account is a solution that makes life easier. We can give it to children, for example, to withdraw funds from our account in crisis situations. The authorization is willingly used by disabled people – a trusted representative can do many things on their behalf. However, third-party access to funds on our account is also of concern. Is justified? Does the representative have the same rights as the account owner? 

Power of attorney and authorization – arranging deadlines

Power of attorney and authorization - arranging deadlines

Both terms are often used interchangeably. Both authorization and power of attorney are to allow someone to be represented by a third party. The differences are technical. The authorization allows you to perform the actual act as a substitute for the authorizing person, while the power of attorney is used to express the will of the principal. This means that we will issue authorization to collect correspondence or fill out a blank promissory note. However, if we would like someone to represent us in court or conclude a contract on our behalf, we will need a power of attorney.

The power of attorney to the bank account gives the attorney possibilities similar to the account owner, of course with some restrictions. We appoint a proxy permanently or for a definite period – it happens that only until a specific action has been carried out, e.g. we can authorize a proxy to withdraw a specific sum from the account once.

Can a representative take a loan on our account?

Can a representative take a loan on our account?

Regardless of the type of authorization issued, the attorney may not perform all activities related to the account. One of the exceptions is the inability to take revolving loans in a given account. With the help of a power of attorney, you will also be unable to take out a loan.

A bank account as a form of identity confirmation is required in almost every online lending company. Can we take a loan online if we have a power of attorney for another person’s bank account? The answer of non-bank institutions is unambiguous. One of the conditions for taking a loan on most websites is to have a personal bank account, i.e. one that is not a company account, is not a shared account (without a co-owner) and is not a foreign bank account. In addition, for verification of the lender you also need data from your ID card, if it does not coincide with the data of the account owner, taking out the loan will fail.

However, there are companies that grant loans without a bank account. The verification method they use is the GIRO check. Then the money is paid out at the post office. To receive them, you must show your ID card and GIRO check in the form of a special SMS code. Such loans are available, e.g. at SuperGrosz or Ratado.pl.

Is the account representative responsible for the debts of the account owner?

Is the account representative responsible for the debts of the account owner?

A bank power of attorney is structured in such a way that it protects the principal and the proxy against mutual debts. This means that if we have, for example, authorization for the account of a son or friend and he takes a loan that he will not pay back, the bailiff cannot take our money on this account.

Protection works both ways. If we have a past due debt, the funds from the account to which we are authorized will be safe. A creditor can only claim his rights against the debtor’s assets. Having the power of attorney to dispose of the bank account, we do not become the owners of the money accumulated on this account.

Can the attorney close the bank account?

Can the attorney close the bank account?

We have several types of proxies. They give you the right to more or less freedom to use the account. Regardless of the power of attorney used, the authorized person never stands on par with the account owner. A general power of attorney gives the most rights. Under this framework, the attorney may perform the same operations in the account as the founder of the account, except for:

  • granting further proxies and revoking proxies,
  • submitting and canceling orders in the event of death,
  • changes or termination of the contract.

The last point indicates that the scope of the power of attorney does not authorize the closure of a bank account on behalf of its owner. He must do it personally.

How to authorize someone to a bank account?

How to authorize someone to a bank account?

The authorization for the bank must be in writing. They can be submitted in person or by correspondence. The presence of a representative is not obligatory. However, it is necessary to certify the authenticity of his signature. It takes place in the presence of a bank employee or notary public. To grant a power of attorney, you can use ready-made templates provided by banks.

What must be included in the bank account authorization?

  • bank account owner details – name, surname, PESEL number or ID card number
  • proxy details – also name, surname, PESEL number or ID card number
  • scope of the power of attorney
  • signatures of the principal and representative (if required by the bank)

Who can get a bank authorization

A bank power of attorney can be granted to any adult who has full legal capacity. Interestingly, the proxy may also be a natural person after 13 years of age. If we want to authorize a foreigner, he must be a resident.

Bank account authorization after death

Bank account authorization after death

Regulating access to your account in the event of death will be a great help for loved ones. The standard procedure assumes that the funds on the deceased’s account are divided in accordance with the arrangements resulting from the succession proceedings. Issuing an order in the event of death allows you to bypass this process. Money paid from the account of the deceased person to the attorney is not included in the inheritance.

We can only grant authorization to a bank account after death:

  • spouse / wife,
  • parents or grandparents,
  • children and grandchildren,
  • siblings.

The maximum amount that relatives will receive may not exceed 20 times the average monthly salary in the enterprise sector. This restriction applies to all measures. If we have issued bank orders authorizing children and brothers to withdraw money, the total amount they will pay may not exceed the aforementioned twenty times the average salary.

Proxy and co-owner of a bank account – rights

Proxy and co-owner of a bank account - rights

A bank account co-owner has more rights than a proxy. He can have funds on his account without restrictions. This means that people who share the account can freely use the money accumulated on it, regardless of who deposited it. They are also responsible for the overdraft on the account. However, there is a restriction that protects the interests of the owners of a joint account – a credit card can only be issued with the consent of both parties. It is also required if we want to change the terms of the contract. Importantly, none of the co-owners can limit access to the account of the other. This is a clear difference from the power of attorney, which we can withdraw at any time. Due to the equal rights of the owners of a joint bank account, very close people, spouses, family members or persons running a household usually decide to set it up.

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