'Power Of Attorney' ???

[bri_ski]

The bank that currently finances my lease (expires this Sept) has offered to sell me a loan to buy my vehicle. In the loan package they have a form that, in effect, assigns them (the bank) irrevocable power of attorney so that they can perform registration and '...other' responsibilities that may be necessary regarding the vehicle. I've never seen this document in any other form of financing and my feeling is there is no friggin' way I'm signing irrevocable power of attorney privileges to a financial institution. Any one come across anything like this?

I'm about ready to call the bank and tell them to take a flying leap, but thought I'd do my due diligence and make use of this forum to get some feed back. Any thoughts?

 

[FSUGUY]

I believe this is the banks way of covering themselves and is becoming more common nowadays. I believe I've signed this a time or two.

It gives them to right to buy insurance,etc... if you fail to and then charge you for it.

think about - it's their auto not yours.

 

[Beaverton]

Generally, a power of attorney enables someone else to sign binding documents on your behalf. This power of attorney is limited in scope to allow them to sign documents necessary to transfer title and the like on your vehicle -- you just want to be sure the that language is clear on the limits of the power of attorney.

The alternative is for you to have the bank collect the documents so you can sign for yourself. But that could create delays or inconveniences for you and the bank, so it's up to you.

The insurance purchase that FSU refers to is ordinarily part of the finance contract, not the power of attorney. This clause requires that you buy and maintain insurance for your vehicle; if you don't then they will buy it for you and add it to your loan. The banks want this to protect themselves.

 

[txyank1]

.....and in most states you sign one of these every time you buy a vehicle from a Dealer.

 

[jackalanche]

NH Nick covered it, as long as it is a LIMITED power of Attorney and such is properly limited to the transaction you are contemplating, you should not freak out and this practice is not uncommon.

I am knda sad, at first I thought this topic was the "Power of Attorneys"!

Jack, Esq.

 

[justhrowit]

I've bought four vehicles in the three years in two different states, and I've had to sign a power of attourny in every purchase. No worries there friend!!!! If you don't sign it, it would be a major hassle for you. You would be in and out of the dealers and banks to sign papers.

As someone said...the power of attouney you are signing is extremely limiting. They are not going to be able to draw out your bank accounts or anything of that sorts.

 

[flynhigh]

Yep, I signed one at the dealer when getting my AV