In our weekly series, readers can email any questions about their finances to be answered by our expert, Rosie Hooper. Rosie is a chartered financial planner at Quilter Cheviot and has worked in financial services for 25 years. If you have a question for her, email us at money@inews.co.uk.
Question: My wife went into a care home two years ago suffering from Parkinsons and Dementia. She is no longer able to communicate. When she was moved into care there was a small outstanding balance on her credit card which I paid to clear the debt. The card has not been used for two years. However, someone has recently used her card fraudulently in Athens. I have tried to speak to her bank who have told me they cannot discuss transactions on the card with me. What are my rights in this situation?
Answer: Your frustration is completely understandable. Not only are you coping with the emotional and practical challenges of your wife’s Parkinson’s disease and dementia, but you then found yourself trying to report what appears to be fraudulent activity on a credit card that she could not possibly have used.
From the bank’s perspective, there is an important legal issue at play. Although you are your wife’s husband, that does not automatically give you authority to access or manage her financial affairs.
Banks are bound by confidentiality rules and, unless an account is jointly held or someone has been formally authorised to act on a customer’s behalf, there are limits on what staff can discuss.
That may explain why the bank was reluctant to talk through the transaction with you. However, it does not entirely explain the experience you describe.
Banks are expected to identify and support vulnerable customers, and your wife clearly falls into that category. A customer living with advanced Parkinson’s disease and dementia, who has been unable to communicate for two years and has been resident in a care home, should be afforded additional safeguards rather than finding interest and charges accruing while a potentially fraudulent transaction remains unresolved.
The fact that a card dormant for around two years suddenly appears to have been used at an electrical goods store in Athens would understandably ring alarm bells for most people. Unusual spending patterns do not automatically indicate fraud, but many readers would reasonably expect activity of this nature to trigger additional scrutiny.
I am also concerned that, after you reported the issue and explained your wife’s circumstances, a second statement has arrived showing interest and a late payment fee. If the transaction is ultimately found to be unauthorised, there is a strong argument that those charges should be removed. Given your wife’s vulnerability, HSBC should also be taking a careful look at how the account has been handled since you first raised concerns.
In your position, I would make a formal complaint to the bank, setting out the full chronology of events. Include the fact that your wife has lacked the ability to communicate for two years, the difficulties you encountered when trying to stop the card and raise concerns about the transaction, and the subsequent addition of fees and interest. Ask HSBC to investigate the disputed purchase, review the charges and explain what support it provides to vulnerable customers and their families.
Your experience also highlights a wider issue that many couples overlook. People often assume that a spouse can automatically step in to deal with finances when illness strikes, but that is not how the system works. The simplest solution is usually a Lasting Power of Attorney (LPA), which allows someone you trust to manage your affairs if you later lose mental capacity. In England and Wales, the registration fee is currently £92.
Unfortunately, once capacity has been lost, that option is generally no longer available. Families may instead have to apply to the Court of Protection to become a deputy. The court application fee is currently £432; there is a further £100 assessment fee for new deputies, and ongoing supervision charges may apply.
That will not solve the immediate issue with this credit card, but it does serve as a valuable lesson for other readers. Putting powers of attorney in place before they are needed is usually far simpler, quicker and less expensive than trying to obtain legal authority after capacity has been lost.
You already have enough on your plate without battling through a banking maze. While the bank may have had legitimate concerns about what it could disclose to you, there is a strong argument that a vulnerable customer and their family should have received a more practical and compassionate response.
If the bank does not resolve matters satisfactorily through its complaints process, you can take the case to the Financial Ombudsman Service for an independent review.