Bank Won't Accept Power of Attorney Michigan: How to Force Compliance Under MCL 556.220

You have a valid, notarized power of attorney for your aging parent. You walk into the bank to access their accounts — and the branch manager says no. They want their own internal form. They say the document is "too old." They claim they need to "run it by legal." Meanwhile, your parent's mortgage payment is due, the nursing home needs a deposit, and you have no access to a single dollar.

This used to be one of the most common — and most devastating — problems families faced. Then Michigan passed the UPOAA.

The Statutory Mandate: MCL 556.220

The Michigan Uniform Power of Attorney Act, effective July 1, 2024, eliminated banks' ability to arbitrarily refuse properly executed powers of attorney. Under MCL 556.220, financial institutions must accept an acknowledged (notarized) POA or act on it within strict timelines.

Here's the exact sequence:

Within 7 business days of receiving the POA, the bank must either:

• Accept the power of attorney and begin processing the agent's requests, or
• Request one of the following: an agent's certification (a sworn statement that the POA is still valid), a translation of the document, or an attorney's opinion letter

Within 5 business days of receiving the requested documentation, the bank must accept the power of attorney.

That's it. No indefinite "legal review." No internal form requirements. No blanket rejections because the document wasn't prepared on the bank's own template.

What Counts as "Acknowledged"

The statutory acceptance clock only applies to POAs that have been acknowledged before a notary public. If your parent's POA was only witnessed (not notarized), the bank has broader grounds to request additional documentation.

This is one reason notarization is strongly recommended under the UPOAA. A notarized document triggers the mandatory acceptance timeline. A witnessed-only document does not.

Consequences of Wrongful Refusal

If a bank refuses a properly acknowledged POA without a valid statutory basis, the agent can petition the court for an order compelling acceptance. The bank faces mandatory liability for:

• The agent's reasonable attorney fees
• Court costs
• Any damages resulting from the delay

In practice, most banks comply once they receive a formal demand letter citing MCL 556.220. The threat of court-ordered attorney fees gets the legal department's attention faster than arguing with a branch manager.

How to Use a Demand Letter

When a branch refuses your POA, escalate immediately. Don't argue with the teller or branch manager — they likely aren't aware of the UPOAA. Instead:

1. Ask for the refusal in writing. Request the bank's specific legal reason for rejecting the POA. This creates a paper trail.

2. Send a formal demand letter to the bank's legal or compliance department. The letter should:

   • Identify the POA by execution date and notarization
   • Cite MCL 556.220 and the 7-business-day acceptance requirement
   • State that continued refusal exposes the bank to court-ordered attorney fees and costs
   • Demand acceptance within 7 business days of the letter's receipt

3. Deliver the letter via certified mail with return receipt, or hand-deliver to the branch with a signed acknowledgment of receipt.

Most banks respond to a properly drafted demand letter within days. The statutory language is clear, the penalties are specific, and compliance departments understand the exposure.

Common Bank Excuses (And Why They Don't Work)

"We need our own internal POA form." The UPOAA specifically prohibits requiring a bank-specific form. A validly executed POA under Michigan law must be accepted.

"The POA is too old." There is no statutory expiration on a durable power of attorney in Michigan. A document executed in 2015 is just as valid as one executed yesterday, as long as it hasn't been revoked.

"We need to verify it with an attorney." The bank can request an agent's certification or attorney's opinion letter, but the 7-business-day clock starts when the POA is first presented. They can't use the request as an indefinite stall tactic.

"We need the original, not a copy." Under MCL 556.220, a photocopy of a notarized POA must be accepted unless the bank has a reasonable belief that the original has been revoked. "We prefer originals" is not a valid legal basis for refusal.

When to Escalate Beyond the Bank

If the demand letter doesn't work within the statutory timeframe:

• File a complaint with the Michigan Department of Insurance and Financial Services (DIFS) for state-chartered banks
• Contact the Office of the Comptroller of the Currency (OCC) for nationally chartered banks
• Petition the court for an order compelling acceptance and an award of attorney fees

The Michigan Power of Attorney & Guardianship Kit includes a pre-drafted bank enforcement demand letter citing MCL 556.220, along with the agent's certification form and step-by-step instructions for escalating refusals through regulatory channels and the courts.

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