HOW TO WRITE A GOOD BANK AUTHORIZATION LETTER (WITH SAMPLES)

Writing an Authorization Letter? So, use this sample authorization letter as a template for your successful authorization letter.

An authorization letter is a document that is written by one person to give authorization to another person to perform a particular task. It’s a legal document that allows someone to do something they would ordinarily not be allowed to do.

It is usually given by a person who is not physically present. The main reasons people write letters of authorization are for medical, legal or financial issues. 

For example, medical records are private, and a doctor would need an authorization letter from a particular patient in order to send that patient’s medical records to someone else.

Legal Documents

Along with sending medical records other legal documents may need to be transferred between lawyers and doctors in the case of a personal injury claim, divorce action or a lawsuit. If a person is going on vacation, they may want to allow a friend or family member access to their bank account to pay bills. 

Other reasons a person may need to write an authorization letter are:

• To give permission for someone to pick up a child from school
• To give permission for someone to pick up packages at the post office
• To give publishing rights
• To allow school children to go on field trips
• To assign duties at work
• To allow airlines to care for an unattended child on a flight

There are three parties involved in a letter of authorization including the first party, the person granting authority, the second party, the hospital, bank or school involved in the transaction and the third party, the person receiving the authority.

The letter is written by the first party to the second party and explains the rights being given to the third party. The third party can be an individual or corporation or other entity. If the second party is not known in the case of an emergency-action letter of authorization, the letter can be addressed To Whom It May Concern.

The letter spells out the specific task that has been assigned to the third party. This can be just about anything, but is usually things like negotiating a contract, taking out a loan in the first party’s name or accessing the first party’s bank account.

according to the law

According to the law, the third party’s actions are binding for the first party. The first party is responsible for anything the third party does while under his or her authorization. For this reason, letters of authorization should not be taken lightly especially if they are financial in nature. 

There are important differences between a letter of authorization and a power of attorney. With authorization, the specific actions are carried out for a specified time. With power of attorney, the agent can continue to act for the first person in any capacity until the first person revokes the power of attorney.

This is done through a written and signed revocation that is sent to the person with the power of attorney and anyone else who knows the agent had power of attorney. In either case, if the first person dies, the power and authorization becomes void. 

necessary information

The letter should include all of the necessary information. For medical records, it should include file number, insurance number and claim information. If it is legal information, the case number should be included and for financial matters the bank account needs to be included.

In most cases the authorized person is a friend or family member and is not paid for his or her help. If the third person is to be paid, it must be clearly stated in the letter. Letters of authorization are rarely notarized. 

The letter should be short and precise. If it has excess information, there may be more than one way to interpret it, which could cause confusion.

The letter should contain:

• The beginning and ending dates of the authorization
• The reason the authorization is being granted
• The duties of the authorized person

Below are sample bank authorization letters. It should be typed in formal business style. Since it is an important document, it shouldn’t be hand written. It should follow legal guidelines, so if it is disputed, it will stand up in court. It should be sent by certified mail to both the second and third party, so each party has proof of when it was sent and received.

Sample 1 – Bank Authorization Letter

Drew Williams
426 Mystic View Turn
Camden NJ, 12345

January 16, 2019

John Dean
ABC Bank
123 Carson Drive
Camden NJ, 12345

Dear Second Party’s Name:

This letter is a formal authorization for Nancy Williams to access my checking account 123456 at ABC Bank to make my mortgage and car loan payments while I am on vacation between DATE and DATE. 

If you have any questions, I can be reached at 555-1212 or at drew@email.com at any time, even while I am on vacation.

I appreciate your help in this matter.

Sincerely, 

Drew William’s Signature
Drew William’s Printed Name

Sample 2 – Bank Authorization Letter

Robert Smith
130 Stewart Rd. 
Jackson, Ohio 45640

June 20, 2019

Oak Hill Banks
12567 St. Rt. 327
Wellston, Ohio 45692
Dear Ms. Jones;

I am writing regarding my account number 345610 that I have with your institution. I have had this account for several years and have enjoyed being a member of this fine bank. I am having some health issues and will have to undergo a major medical procedure. I need to ask that Lisa Smith, my daughter, be appointed representative over my account during my medical down time. 

Please allow Lisa to make deposits, withdraw cash, purchase money orders or cashier’s checks and to have full access to my account. I also have 2 safety deposit boxes with your bank, but she doesn’t need access to those at this time. 

Should I not make it through the surgical procedures, my will allows her access to these boxes. This authorization should be granted from today, July 01, 2019 until December 1st, 2019 unless otherwise notified. 

I appoint Lisa Smith at 9090 David Ave. Jackson, Ohio 45640 to handle my banking. You can reach me on my cell phone at 555-890-7845 if you have any questions. I look forward to continuing my services with you banking institution.

Sincerely,

Robert Smith

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