What to Do When a Maine Bank or Credit Union Refuses Your Power of Attorney

One of the most stressful situations an appointed agent can face is walking into a bank with a perfectly legal Power of Attorney (POA), only to have the teller or branch manager reject it. You are trying to pay your elderly parent's mortgage or access funds for their immediate medical care, but the financial institution refuses to grant you access. This is an incredibly common pain point across Maine.

Banks and credit unions operate under strict internal policies designed to prevent fraud and financial exploitation of vulnerable adults. While their caution is understandable, it often crosses the line into unreasonable obstruction. Fortunately, Maine has adopted specific laws designed to punish institutions that arbitrarily refuse valid POAs. An experienced attorney from our directory can help you cut through the red tape and compel the bank to honor the document.

Why Do Financial Institutions Reject Valid POAs?

Before you threaten legal action, it helps to understand why a local branch in Augusta or Lewiston might be pushing back against your authority. Banks typically cite one of a few common reasons for rejection.

'Stale' POAs (The Age of the Document)

Many banks have an internal (and legally questionable) policy of rejecting a POA if it was signed more than three to five years ago, claiming the document is 'stale.' In reality, under Maine law, a POA is durable and remains valid until it is formally revoked by the principal or upon the principal's death. The passage of time does not invalidate it. However, convincing a stubborn bank manager of this fact often requires a lawyer's intervention.

Custom Attorney Forms vs. In-House Bank Forms

Unlike some states, Maine did not adopt a statutory short form Power of Attorney, meaning all Maine financial POAs are customized instruments drafted by attorneys. However, bank branch personnel frequently hesitate over unfamiliar attorney-drafted language or demand that customers sign the institution's proprietary in-house POA form. Under Me. Rev. Stat. tit. 18-C, § 5-920, a financial institution is explicitly prohibited from requiring an additional or different form if the presented POA meets statutory execution requirements.

Steps to Compel Acceptance in Maine

If your POA is being stonewalled, you do not have to simply walk away and give up. Maine law provides a specific escalation pathway to force the bank to comply.

Step 1: Drafting an Agent's Certification

When a bank hesitates, the first legal step is to provide an affidavit. Under the Maine Uniform Power of Attorney Act, you can present a Form Statutory, Maine, State Legislature, Agent's Certification as to the Validity of Power of Attorney and Agent's Authority. By signing this document under penalty of perjury, you are legally swearing that the principal is still alive, the POA has not been revoked, and you are acting within your authority. Once you provide this certification, the bank's legal excuses for refusal are drastically reduced.

Step 2: Citing Me. Rev. Stat. tit. 18-C, § 5-920

If the bank still refuses after receiving the certification, it is time to remind them of the law. Under Me. Rev. Stat. tit. 18-C, § 5-920, a person who unreasonably refuses to accept an acknowledged power of attorney is subject to a court order mandating acceptance, and they may be held liable for reasonable attorney's fees and costs incurred in forcing their compliance. Often, a formal demand letter from a Maine attorney citing this exact statute is enough to make the bank's legal department instantly reverse their denial.

Step 3: Reporting to Regulatory Agencies

If the institution continues to act unreasonably, your attorney may file a formal complaint with the Maine Bureau of Financial Institutions, Gardiner. This state agency oversees state-chartered banks and credit unions and can investigate institutions that systematically violate Maine's fiduciary and estate laws. Precedents in fiduciary litigation, similar to principles upheld in Estate of Keatinge v. Biddle, 789 A.2d 1271 (ME Supreme Judicial Court 2002), demonstrate that Maine courts take the duties surrounding estate documents very seriously.

How Much Does it Cost to Resolve This in Maine?

Fighting a bank might seem expensive, but the law is designed to shift the burden away from you if the bank is acting in bad faith.

• Demand Letter: Having an attorney draft a stern demand letter citing Maine's UPOAA statutes generally costs $250 to $500.
• Court Petitions: Filing a petition in the Kennebec County Probate Court, Augusta to mandate acceptance will require a filing fee (around $75 to $150) plus hourly attorney fees.
• Cost Recovery: If the judge determines the bank's refusal was unreasonable under Me. Rev. Stat. tit. 18-C, § 5-920, the bank can be ordered to reimburse you for all your attorney's fees.

How Long Does the Process Take?

Maine law gives financial institutions a specific timeline. Once you present the POA, the bank generally has 7 business days to either accept it, reject it, or request an Agent's Certification. If they request the certification, they have 5 business days after receiving it to accept the POA. If they blow past these statutory deadlines, your attorney can immediately file for court intervention.

Frequently Asked Questions (FAQ)