Can I operate tenants bank account for them with permission?

by Readers Question

13:26 PM, 30th October 2014
About 6 years ago

Can I operate tenants bank account for them with permission?

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Can I operate tenants bank account for them with permission?

As some of you know, I’m pretty experienced in Housing Benefit …. well I think I am! ha ha.

The letter below basically explains my question to you all, as I was gonna’ ring the bank, but the robots in India won’t have a clue.

And then I thought – There’s usually always someone on there with a useful opinion – some fools that haven’t got a clue, but some that do genuinely know or have had the experience.

Further to my letter/question below, would we then be able to change the address to one of my offices, so that I get bank statements, new cards etc.?

“Dear HSBC,

Can you confirm for me if it is perfectly legal for a tenant of mine to open a bank account to get her Housing Benefit paid into, to use this account just for Housing Benefit, & for the tenant to then give the Landlord the cash card & pin number for him to deduct the Housing benefit amounts ie. £470 every 4 weeks, out the bank machine in the wall?

If he has a full permission letter from the tenant saying he can use bank card & number to withdraw the Housing benefit money to pay the rent on the Landlords house she is living in?

She wishes to do this, as getting the Housing Benefit paid into her bank where all other direct debits are going out, is getting her into a mess & sometimes the Housing Benefit money is being used to pay other bills, so she is then short of funds to pay her rent.

So a separate bank account, where she has no access, as she also gets temptation to spend the money, would massively benefit her.

Any queries, please call me.

Yours sincerely,


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Mick Roberts

7:17 AM, 4th November 2014
About 6 years ago

To set up the power of attorney sounds like a lot of paperwork & time. Maybe do-able if u only have a few houses to worry about.

All BankersAreBarstewards Smith

7:59 AM, 4th November 2014
About 6 years ago

Mick - I know we are going a bit off track here - but the problems with getting an LPA done for business affairs is nothing to do with the number of properties you own... its the process..... huge forms, choosing 3-4 people who you want to handle your affairs, (just in case) people who are knowledgeable in property, able and willing; getting people's signatures on forms, getting those forms back again, sending the forms out to all of them, writing letters to others, sending it to the Public Guardian .... its just so much messing about... but - if like me - you have no family you need to put these things in place to protect your tenants and your assets..

Mark Alexander

8:19 AM, 4th November 2014
About 6 years ago

Reply to the comment left by "All BankersAreBarstewards Smith" at "04/11/2014 - 07:59":

The OPG are well within their rights to assume that if you had wanted your family to look after your affairs in the event of your incapacity that you would have made provision for telling them by at least having if not registering an LPA.

Therefore, if landlords know who they want to look after your affairs in the event of incapacity they cannot assume that those people will be able to do so without having first put an LPA in place (family or not!)

It's a frightening thought but if a landlord was to slip into a coma for a year he/she could wake up to find that a solicitor or a civil servant they have never heard of had decided that it was in their best interests to sell all of their properties in an auction! That's why it is so important that all landlords have LPA's.

As has been said though, we are now miles off topic.

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