The Contractor, the Companion, and the POA
An 82-year-old widower, Mr. Petrov, visits a branch to withdraw $45,000 in cash. He is accompanied by a man in his 40s who introduces himself as a contractor and says the money is for roof repairs. Mr. Petrov's account has a continuing power of attorney naming his daughter, who is not present and has not been contacted. The account shows a $2,100 monthly pension deposit, a $60,000 GIC maturing next week, and a $12,000 balance. The teller notices Mr. Petrov calls the companion his nephew, although the companion said he was a contractor, and Mr. Petrov cannot recall the current month. The branch has no note of a prior large cash withdrawal. The companion is answering most questions and has Mr. Petrov's debit card and PIN.
1. What should the branch staff do before processing the withdrawal?
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The branch should not process the $45,000 cash withdrawal. Several red flags point to possible elder financial abuse: a large cash request, an unfamiliar companion who answers for the client, inconsistent stories about the relationship, confusion about the month, and possession of the client's debit card and PIN. Staff should calmly separate Mr. Petrov from the companion, ideally by inviting him to a private office, and ask open questions about the repairs, the contractor's identity, and any invoice. They should verify identity, review the power of attorney document, and attempt to contact the daughter named as attorney.
If the client appears to lack capacity or is being coerced, the branch should escalate to the manager and fraud team, document everything, and consider a report to the police or adult protective services. Staff should not tip off the companion or accuse him. The withdrawal should be delayed pending verification. The teller's observations should be recorded verbatim, including who said what.
2. What is the scope of the POA and how does it affect the request?
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The continuing power of attorney names the daughter, not the companion. A POA does not authorize the attorney to act unless the client lacks capacity, and it certainly does not authorize a stranger to direct the account. If Mr. Petrov has capacity, he can request the withdrawal, but the branch should be satisfied that the request is genuinely his and not the product of undue influence. If he lacks capacity, the daughter as attorney should be the one making decisions, and the branch should deal with her.
The bank should review the POA to confirm it is continuing and covers banking transactions, and should record why it did or did not act on the client's instruction. The companion's possession of the card and PIN is a separate concern and should be addressed. The branch should not accept the companion's explanation as authorization, and should not disclose account details to him.
3. How should the GIC maturity and future account access be handled?
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The maturing $60,000 GIC should not be automatically reinvested or released to the companion. The branch should place an alert on the account, confirm maturity instructions with Mr. Petrov and, if appropriate, the attorney, and consider a trusted contact person. Staff should document the incident, monitor for further unusual activity, and provide Mr. Petrov with fraud-prevention information.
If the daughter confirms concerns, the branch may discuss restricting access or changing credentials, but any restriction must follow policy and legal advice. The goal is to protect the client while respecting his rights. The branch should also check whether other accounts or beneficiaries are affected and whether the companion has appeared at other branches.