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A redress scheme set up five years ago to partially refund people who were overcharged power of attorney (POA) fees is still open – and millions of pounds are still to be claimed.
In 2018 the Ministry of Justice (MoJ) began refunding those who had applied for lasting power of attorney (LPA) between 1 April 2013 and 31 March 2017.
Since this scheme launched, the MoJ has paid out £16m.
Here, Which? takes a closer look at why fees were overcharged and explains how you can claim a refund if you think you were affected.
If you'd like to set up a power of attorney for yourself or someone else, Which? can help – prepare your documents and have them reviewed by a specialist from only £99.
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How were people overcharged?
Lasting Power of Attorney is a legal document in which one person (the donor) gives others the right to make decisions on their behalf about financial or medical decisions (the attorney(s)).
There are two types of LPA: property and financial and health and welfare.
LPAs have to be registered with the government by making an application to the Office of the Public Guardian (OPG). The OPG is allowed to charge all applicants a fee to cover its running costs.
Between 1 April 2013 and 31 March 2017, the Ministry of Justice reduced the OPG's operating costs but the application fee stayed the same.
This meant the OPG generated a surplus from overpayments, as people carried on paying the same price.
The cost of applications was eventually reduced from £110 to £82 from 1 April 2017.
In the Office of the Public Guardian 2022-23 annual report it states: 'The MOJ-led historic refund scheme for power of attorney fees is now in the fifth year of a six-year campaign and this year customers received a total of £3,494.81 in refunds.'
Since 2018, £16.9m has been refunded out of an estimated £69m.
The MoJ said this has been split between 330,000 cases, but it estimates there are 1.7m power of attorney applications involved that could be due a partial refund.
However, the actual number of people affected is likely to be lower because each donor may have registered more than one type of application.
Make your money work harder. Get the best deals, avoid scams, and grow your savings with expert guidance for just £24.50 for a year – that’s half the usual price.
Or write to the OPG by post, and send it to: POA Refunds Team, Lower Ground Floor, Office of the Public Guardian, PO Box 16185, Birmingham, B2 2WH.
It may take up to 12 weeks for your claim to be processed, and if it’s approved you’ll be sent a refund via cheque.
If you'd like to set up a power of attorney for yourself or someone else, Which? can help – prepare your documents and have them reviewed by a specialist from only £99.