FCA probes banks on bereavement and power of attorney policies
There were also examples of customers who struggled to get support during an emergency – such as a mental health crisis – adding to their distress
The Financial Conduct Authority (FCA) has highlighted that banks and building societies should improve how they treat customers affected by bereavement or registering a power of attorney.
While some firms are making “a real difference” with clear policies and procedures since the introduction of the Consumer Duty, other firms’ staff are unclear on the actions they need to take and how quickly.
In some cases, this meant that some individuals and their representatives were unable to access funds to pay essential bills. There were also examples of customers who struggled to get support during an emergency – such as a mental health crisis – adding to their distress.
As a result, the regulator has published good and poor practice to help firms provide the right support which is consistent with the Consumer Duty.
Sam Grice, founder and CEO of Octopus Legacy, said: “For families like mine who have struggled with the death of someone you love, dealing with the administrative burden of bereavement can be overwhelming – particularly when it comes to financial institutions.
”The sheer emotional toll of chasing down access to accounts, navigating endless forms and unresponsive systems and being asked to repeatedly prove their loved one has died is heartbreaking – and entirely avoidable.”
He added: “The process of administering an estate should not feel like a second loss. Financial institutions have a real opportunity to ease the emotional burdens of bereavement, not add to them.”
The FCA issued guidance to help financial services firms support consumers in vulnerable circumstances in 2021 and introduced the Consumer Duty in 2023, which requires firms to “deliver good outcomes for all customers, including those in vulnerable circumstances”.
