What happens if a third-party refuses to honor your power of attorney?

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by

Benjamin Boyhan
in

It is possible for a third-party to refuse to honor your power of attorney (“POA”). For instance, if your attorney in fact tries to open a bank account on your behalf using a POA, the bank will review the POA and decide whether it gives your attorney in fact the power to open the bank account on your behalf. If the bank rejects your POA, then there is a process they must follow to disclose the reason for rejection.

A third-party must decide whether to accept or reject your POA within a reasonable time. The definition of a reasonable time depends on the institution reviewing the POA, the circumstances, and the terms of your POA. For financial institutions, four business days is generally considered a reasonable time. See Florida Statute 709.2120(1)(a).

If a third-party rejects your POA, then the third-party may be required to provide the reason for rejection in writing. However, pursuant to Florida Statute 709.2120(4), the following reasons for rejection do not require a third-party to provide a written disclosure of the rejection:

  1. The third-party is not required to engage in the transaction even if you were present.
  2. The third-party has knowledge of the termination or suspension of your attorney in fact’s authority to act on your behalf.
  3. Your attorney in fact refuses to provide an affidavit, English translation, opinion of counsel, or electronic journal or record pursuant to Florida Statute 709.2119.
  4. The POA was witnessed or notarized using a remote online notary and the agent is unable to produce the electronic record or the remote online notary did not maintain a record of the notarization.
  5. The third-party does not believe in good faith that the POA is valid or your attorney in fact does not have authority to perform the act requested.
  6. The third-party makes, or has knowledge that another has made, a report to adult protective services stating you are subject to elderly abuse by your attorney in fact or someone acting on your attorney in fact’s behalf.


If a third-party rejects your POA in violation of Florida Statute 709.2120, then the third-party is subject to (1) a court order mandating acceptance of the POA and (2) liability for damages, including reasonable attorney’s fees and costs.