The delegation on the current account involves some risks that it is good to know before deciding if a person deserves our trust. The attention threshold must always remain high.
The bank proxy on the current account corresponds to a power of attorney that the holder grants to a third person if he is unable to carry out specific operations. It is an authorization that is given to carry out some of the most common actions such as making wire transfers, issuing checks, making withdrawals or deposits. Confidence in the person chosen as a delegate must be high but it is not always certain that it is well placed. There are tangible risks in using the power of attorney in question and it is good to know them before making such an important choice.
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Transactions granted by proxy and types of power of attorney
As already mentioned, by delegating a third party to operate on the current account, you authorize it to do so ordinary operations while it is excluded from carrying out extraordinary operations such as signing contracts, withdrawing stocks or close the account. Within the most common actions we mention withdrawals, transfers and payments of various kinds. It is easy to understand how these operations can generate risks for the delegator. To limit the work of the delegate it is preferable to opt for the current account a joint signature. This type of delegation prevents the third party from carrying out any operation without the owner’s consent.
The account a disjoint signature, on the other hand, it allows you to act without consent while the one with mixed signature limits the amount of individual transactions. The greatest risks, therefore, arise if the current account has separate signature.
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Risks of the delegation of the current account
Following the authorization to the delegate to operate on his current account, the bank will not be responsible of the actions performed by the subject. If there were undue withdrawals there can be no type of recourse by the account holder against the credit institution. By signing the proxy, the full assumption of responsibilities is also signed. The holder will not get any reimbursement from the bank and will be forced to initiate a legal procedure to obtain the “stolen” money.
Another risk to be taken into account is linked to the eventuality in which the delegate has debts with the tax authorities. In case of controls, the Revenue Agency could prepare the seizure of the current account of the owner, as established by various rulings of the cassation.
The person chosen to operate on their account must therefore have full and indisputable trust. In any case, it is advisable to opt for a power of attorney only in conditions of extreme necessity. We remind you that the proxy is different from the co-header of the account. The co-holder, in fact, unlike the delegate, is in effect a second holder of the current account and is free to operate without restrictions.
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