Mental Incapacity

[Onetap]

I don't know which forum this belongs in, so the Mods may move it, if appropriate.

I am in need of some advice about a Relative's affairs. He has suffered from schizophrenia for nearly 30 years and lives on ESA and DLA benefits. The DLA benefit was recently stopped.and the DWP had refused to award him the new PIP benefit. I appealed that (sucessfully!). Whilst doing that I delved into his affairs and was aghast at the extent of the financial abuse he suffers.


This is mainly 'friends' borrowing money and not repaying him. He has no assets. He has credity card debts. He has been lending or giving all his money away. I have been made his appointee by the DWP; this arrangement was intended to stop the 'borrowing', but I have found it has not been effective. I am now applying for power of attorney. He is embarrassed by his problems and had assured everyone that he was managing.

Nearly five years ago, one 'friend' took him to a Vauxhall main dealers, and arranged a finance agreement in my relative's name for a van; the friend has the van and had been using it for delivery work. He owes about £10,000 to my Relative. .

I first found out about this around a year ago, rang Vauxhall Finance and told them about the Relative's mental condition. I offered to go to a local Vauxhall dealers with medical documents, which I didn't want to copy and circulate. They obviously didn't give me any information over the phone, but said they'd contact me. They didn't. Some months after that, they approved a change of the registered keeper on the V5 from my relative to his friend. .The van is now SORNed and has no MOT.

I have phoned or e-mailed about 12 solicitors asking for legal advice (I will pay!). None have got back to me; presumably probates, divorces and conveyancing are keeping them all busy.

I need advice on;

1) recovering the van. Can one get a court order to take away an item of property? I have Googled but can only find information on money claims or repossessing a flat or house. The van is still the property of the finance company (GMAC/Vauxhall Finance) but will become the property of my relative in a few months when the payments are completed. The Friend seems to be planning to sell mit then, when a check would show there is no outstanding HP agreements.

2) Is there any legal means (injunction?) of stopping the named main offenders asking him for more money?

3) Is such financial abuse of someone with a mental incapacity a criminal offence and, if so, which Act covers it?

[Amethyst]

Good on your for trying to help your relative and get this sorted out. It does sound like you are doing the right thing applying for power of attorney - are you looking at health/welfare AND financial or just financial ?

Has your relative been making the payments on this HP agreement for the Van throughout the contract ?

[Onetap]

Good on your for trying to help your relative and get this sorted out. It does sound like you are doing the right thing applying for power of attorney - are you looking at health/welfare AND financial or just financial ?

Has your relative been making the payments on this HP agreement for the Van throughout the contract ?

Just financial at the moment, it is more urgent.

He has made all the payments from his account, the Friend's credit rating would have barred him from getting a credit agreement in his own name. The Friend had promised to give him the money every month, but he now owes him about £10,000. The van isn't worth that much, it looks very neglected. It is probably repairable and would be worth something, but is still the finance company's property at present. The Friend also had a credit card, in my Relative's name, on which he spent the maximum £300 every month. I haven't delved into that can of worms yet. I don't think any of this could be recovered from the Friend, he has no property.

[Amethyst]

Your relative can close the credit card as it's in his name - who is paying off the card each month ?

Have you discussed any of this with the friend ?

Registered keeper isnt isn't the same as legal owner - the finance company still own the van and once paid off your relative does - so if the friends plan is to sell it the proceeds need to go to your relative ( although it would likely be better to get the van back, repair and sell it himself)

[des8]

I'm surprised at finance house approving change of registered keeper from the name of the person who took out finance.
It is normally a condition of finance agreements that the person who takes out the finance is the main user.
Any other arrangement is "fronting", and is a fraudulent activity in which the finance house seem to be colluding.

As your relative probably did not have the capacity to make the agreement, and the finance house now are aware of this, they may like to consider action against the friend and some form of recompense to your relative