Real Basic Question About Account Access

[Anonymous]

Hi,

I’m brand new to DMM and embarrassed I can’t figure this out myself…What would I present to a financial institution to access a client’s account (with permission of course)? I have a Financial Power of Attorney document ready to go, but I don’t expect everyone to grant me that level of power. I also have a detailed contract for services, but it doesn’t seem like that would suffice for a security conscious financial institution. What’s the middle ground?

Thank you!

[Anonymous]

Hi Bill,

I simply include a clause in my Letter of Engagement in which the client authorizes me to access their accounts and provide me with the ID and PWs. It makes it pretty simple.

Tracey Hall

[Anonymous]

Bill,
No need to be embarrassed. You have hit upon one of the issues that challenges many a DMM and one that both newbies and veterans talk about all the time! If DMMs decided to take on a fiduciary position, such as power of attorney (POA), either full or limited, they need to be sure they are insured properly for it and understand their legal responsibilities. DMMs who choose not to take POA are generally not able to have access to a client’s account unless the client provides them with their online credentials. This should not be done without a written agreement. A simple release form may be enough for some banks to provide information to the DMM, but not for executing transactions.

In my business, we do not take POA at all. We also do not serve clients who do not have a POA appointed. We do what we can without the POA and then call on the person who holds the POA if direct contact with the financial institution is required. We do access accounts online with a written agreement. This setup is not always the most efficient, but it has worked well for us so far. This is our middle ground and each DMM has to decide what their middle ground will be, based on their own analysis of the risks of various arrangements.

Feel free to reach out to me to discuss further.

Best,
Leah

Leah Nichaman
Founder and President
Everyday Money Management
Keeping Your Financial Life in Order
PO Box 1469, Rockville, MD 20849
Direct: 301-325-2680 | Main Office: 301-801-2294 | Fax: 240-536-9146
leah@everydaymm.com | http://www.EverydayMoneyManagement.com
President, American Association of Daily Money Managers
Member, Advisory Committee of the Representative Payee Program of Montgomery County

Need to schedule a call or meeting with me? Click here: https://meetme.so/LeahNichaman

[Anonymous]

I believe there is a form under the Resources->sample forms section of the AADMM site. Depending on what level of access you need, the account owner may be able to set up an additional online banking login for you to use. Many banks offer different security levels such as just able to pay bills or view data but not transfer funds.

[Anonymous]

Thank you, everyone! That was very educational and comforting.

[Author]

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