Can a Bank Refuse Power of Attorney in Michigan?

Before July 2024, the answer was effectively yes — Michigan banks routinely rejected valid POAs and demanded their own proprietary forms. The Uniform Power of Attorney Act (UPOAA) changed that. Under the new law, a bank that refuses a properly presented POA faces court-ordered acceptance and liability for your legal fees.

The New Rules Under MCL 556.220

When an agent presents a notarized (acknowledged) power of attorney to a financial institution in Michigan, the bank must do one of two things within seven business days:

1. Accept the POA and process the agent's requested transactions, or
2. Request additional documentation — specifically, an agent's certification (under MCL 556.403), a translation (if the document isn't in English), or an opinion of counsel

If the bank requests additional documentation and the agent provides it, the bank then has five business days to accept.

A bank cannot refuse a POA simply because it isn't on the bank's own proprietary form. That practice, which was widespread before the UPOAA, is now explicitly prohibited.

What Happens If a Bank Refuses

If a financial institution wrongfully refuses a valid, acknowledged POA, the agent can seek a court order compelling acceptance. Under MCL 556.220(4), the bank is liable for:

• Reasonable attorney fees incurred by the agent in obtaining the court order
• Court costs
• Any damages caused by the delay

This fee-shifting provision gives the law real teeth. Before the UPOAA, pursuing a bank refusal through the courts was prohibitively expensive for most families. Now the bank pays your legal costs if they're wrong.

When a Bank Can Legitimately Refuse

The UPOAA doesn't require banks to accept every document blindly. A bank can refuse or delay acceptance if:

• The POA is not notarized. A witnessed-only POA is legally valid in Michigan, but it doesn't trigger the mandatory seven-day acceptance timeline. Banks can take longer to verify witnessed-only documents.
• The bank has actual knowledge that the POA has been revoked or that the principal is deceased.
• The bank has a reasonable basis for believing the POA is invalid — for example, the signature appears forged or the document is clearly incomplete.
• The bank has reported suspected financial exploitation of the principal to the appropriate authorities. In this case, the bank can refuse to process transactions while the investigation is pending.

How to Present a POA to Maximize Acceptance

1. Get the POA notarized. This is the single most important step. A notarized POA carries the statutory presumption of genuineness and triggers the seven-day acceptance requirement. Cost: $10 or free at most Michigan banks and credit unions.

2. Bring the Agent's Acknowledgment of Duties. Under MCL 556.402, the agent should have a signed acknowledgment of their fiduciary obligations. Banks may request this.

3. Prepare an Agent's Certification. MCL 556.403 allows banks to request a certification — a sworn statement by the agent that the POA is still in effect, hasn't been revoked, and that the principal is still alive. Having this ready eliminates the most common delay.

4. Pre-file the POA. Don't wait for a crisis. Walk into the bank with the executed POA, the acknowledgment, and a valid ID while your parent is still healthy. Ask the bank to note the POA on file. When you need to act later, the document is already in their system.

5. Bring a copy of MCL 556.220. If a branch manager pushes back, having the statute in hand — with the seven-day deadline and fee-shifting penalties highlighted — often resolves the issue immediately. A polite but informed request is far more effective than arguing.

What About Credit Unions and Brokerages?

The UPOAA applies to all "financial institutions" as defined under Michigan law, which includes banks, credit unions, and savings institutions. Brokerages and investment firms may have additional federal regulatory requirements, but the state-law acceptance framework still applies to Michigan-chartered institutions.

For federally regulated brokerages (like Schwab, Fidelity, or Vanguard), each has its own POA review process that may run parallel to the UPOAA requirements. Getting the POA on file proactively with these institutions avoids the friction entirely.

The Michigan Power of Attorney Kit includes a bank acceptance defense guide that cites the specific UPOAA provisions, formatted as a document you can hand directly to a bank manager alongside your POA.

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