Selfie shots signal end to informal financial management


Selfie shots signal end to informal financial management

 

International payment processor Visa is launching a platform to allow banks to integrate biometric security that will use selfies, fingerprints or voice records to approve purchases in the drive against fraud.

In the first six months of 2017, over £500 million in attempted card fraud was prevented, with actual fraud losses coming in at just under £290 million1.  And while the figures were 11% lower than the same period in 2016, following coordinated action by financial institutions and the police, tackling fraud remains a top priority for the sector.

As well as hitting the fraudster, the increased use of biometric identification will also affect those who allow family or friends to informally manage their financial affairs, and professionals are encouraging everyone to get formal arrangements in place, that can work alongside such safeguards. 

Said Ben Talbot with  Gamlins Law:   “There are many reasons why you may want to allow someone else to manage your finances.  The obvious situation is if you are elderly or ill, but it’s just as likely to be needed by someone undertaking long term travel or working overseas for a corporate employer.  Even day-to-day management of family finances may see couples sharing access to their single named bank accounts. 

“But it’s not a good idea to have informal arrangements in place, even when it’s family left in charge, as you’re likely to be breaching the terms and conditions of your account, and leaving yourself exposed.  Combined with stricter requirements by banks and others, it’s something that should be dealt with through formal agreements.”

By using a Lasting Power of Attorney – known as LPAs – people can appoint someone to look after their financial affairs on their behalf.  While many imagine these are something for the elderly to consider in case of dementia, they have an increasingly important place, for asset protection and to manage today’s strict security procedures.

He explained: “By making an LPA and appointing an attorney to manage things for you, they will have power to enter into any transaction, unless you have specifically forbidden it, so they will be able to deal with investments and to write cheques. 

“But the important consideration is choosing the right person to be an attorney.  So, think about how well they look after their own finances, how well you know them and how sure you are that they will make the right decisions for you.  As an added precaution, you can appoint two attorneys who must both be involved in each decision, although that can make transactions more complicated if they must both be involved at the same time. Another option is to appoint a family or friend to act, but also appoint a professional, and they can undertake regular checks on how matters are being handled.” 

As well as Property & Financial Affairs LPAs, used to appoint someone to look after your finances, there are also Health & Welfare LPAs, used to appoint someone to deal with issues such as where you live and medical treatment if you become mentally incapable.

Any LPA must then be registered with the Office of the Public Guardian, which is the administrative arm of the Court of Protection, before it can be used, and involves a fee of £82 per LPA.  The registered LPA can then be submitted to any institution such as a bank or utility provider so they can deal directly with any appointed attorney named in the LPA.  

He added:  “LPAs are often thought to be for older people, but they can be just as important when you are younger – for example, it can be invaluable if someone is involved in an accident which leaves them incapable of managing their affairs, or if you are travelling or working out of the country for long periods and unable to manage your affairs directly.” 

The other advantage of an LPA is that without one, where someone has become mentally incapable, for whatever reason and at whatever age, their financial and personal affairs will have to be managed by a deputy appointed by the Court of Protection.  This is a slow and expensive business for most families, as relatives may be forced to get permission from the Court for each transaction that they carry out.  The deputy is also required to produce annual accounts, and there are legal and Court fees throughout the process. 

 

1.                 http://www.actionfraud.police.uk/news/latest-industry-data-shows-fall-in-financial-fraud-sep17


 Web site content note: 

This is not legal advice; it is intended to provide information of general interest about current legal issues.

Comments

Post a Comment

Popular posts from this blog

Find my Will! A blog on lost Wills and how to stay one step ahead!

Find my Will! A blog on lost Wills and how to stay one step ahead! Finding a lost Will is no easy task and the trap of losing your Will is something that happens oh so easily.   Like a mobile phone down the sofa or remembering where you put your keys, legal documentation   is no different! You might at this stage be asking “how could I lose something as important as my Will” but you’ll   be surprised at how easily it happens! One of the most common ways that a Will is lost is by self-storage. “If I make the Will and store it myself, it can’t go missing right?” However that is often the problem. Because a Will is so important, and the content so sensitive, they often get hidden away. This means that they may be safe from prying eyes, but in later years or during a house move or clear out, a Will could often be lost. It could also be that you pass away and your loved ones are struggling to find your Will. If there isn’t a clear indicator as to its location, it cou...
Read more

Organ donation and your Will: Make your wishes known!

Organ donation and your Will: Make your wishes known! On the 1st December 2015, Wales made history by becoming the first country in the United Kingdom to create an “opt out” system of organ donation. Formally introduced by the Human Transplantation Wales Act, the plan was to combat the lack of organ donation by making everyone an organ donor unless they formally registered their wish not to be. Over two years on, it would appear that the scheme, although still in its infancy, is still creating waves with both the English and Scottish parliament considering whether to also implement such schemes. This also comes at a time when the number of organ donors is at an all-time high, with a report today detailing an astounding 11% increase in 2017. Given the recent implementation of such schemes, you may be left wondering where you stand on compulsory organ donation, and the toss up of helping others when you’re gone against the right to decide what happens to your body after death...
Read more

End of life care and Lasting Powers of Attorney: Giving power back to your loved ones.

End of life care and Lasting Powers of Attorney: Giving power back to your loved ones. By Samuel Amer On the 30 th of July, the UK Supreme Court handed down an unprecedented decision. The court held that when an individual was in a permanent vegetative state, and there was an agreement between the family and doctors, medical staff could withdraw food & water from the patient allowing them to pass away. This decision is seen as quite a departure from legal precedent. Previously families and doctors who were in agreement would have to endure an agonising process of applying to the Court of Protection to have life sustaining care removed. Although some groups feel that the decision is inhumane, many people who have endured the terrible situation of watching a loved one needlessly remain in an undignified state have welcomed the ruling. As the nation’s aged population increases, it’s the case that more of us have developed our own views on end of life care, and also...
Read more