Duty of Care to Gamblers

[PlanB]

Re: Duty of Care to Gamblers

[QUOTE=leclerc;327980]

With Gambling their is usually other debts but as the OP has asked the simple question, so to speak, of whether the bank has a duty of care to someone with a Gambling Addiction then the answer is NO.

However, if the question was whether the bank has a duty of care to a customer who is in financial difficulties(section 9, Lending Code which is where the issue of Mental health and debts comes from) then the answer is YES.

PlanB the OP ask the former question rather than the latter one

Which is why I am asking the latter question on his/her behalf

[leclerc]

Re: Duty of Care to Gamblers

Does the bank owe a compulsive gambler, (following disclosure of a gambling addiction) a duty of care to restrict transactions and prevent the overdraft from being used to gamble with. If the bank has a policy to restrict borrowing and this is not followed could this give a right of action to the account holder in a civil court to reclaim all gambling losses or is this too remote?

The above is the question and the answer is No they do not have a duty of care.

If the question is whether there is a claim actionable in court if they do not follow the Lending Code then the answer is NO.
PlanB I'll answer the question asked rather than second guess other things which unfortunately, I do not think is one that is viable on Financial hardship.

[Eloise01]

Re: Duty of Care to Gamblers

I am going to sort of sit on the fence - I know, so unusual for me! I think everone has a point here, but surely the issue must be mental competance. If I have the mental competance to have a bank account I would be very annoyed at any bank who told me what I could and could not spend my money on. If I don't have the mental competance to manage my affairs, then I shouldn't have a bank account that I am in control of. Addictions are a terrible thing - but whilst I cannot blame people for their addictions, nor is it someone elses fault. Doesn't matter whether it was online gambling or cocaine. If you can't afford it, you shouldn't buy it. Easier said than done, I know - but there is help available, and the first step to that help working is that it isn't somebody elses fault.

[PlanB]

Re: Duty of Care to Gamblers

The above is the question and the answer is No they do not have a duty of care.

If the question is whether there is a claim actionable in court if they do not follow the Lending Code then the answer is NO.
PlanB I'll answer the question asked rather than second guess other things which unfortunately, I do not think is one that is viable on Financial hardship.

Point taken.

Plan B likes to see if posters have other options if Plan A isn't viable

Is there any court action in this instance

[PlanB]

Re: Duty of Care to Gamblers

I am going to sort of sit on the fence - I know, so unusual for me!.

:scared:

[MissFM]

Re: Duty of Care to Gamblers

Wouldn't the bank have a duty to restrict borrowing having an instruction from the client not to advance money for certain activities regardless of any vulnerabilities? Don't you have to honour a contract to sell money as well as to buy it?

[leclerc]

Re: Duty of Care to Gamblers

None, and I am not sure I like the use of the word "mental competence" in Eloise's post. There are things such as power of attorney over accounts where the person is "non compos mentis" ie alzheimers/Parkinsons disease.....

[matth200]

Re: Duty of Care to Gamblers

Can you tell us more about any formality of the disclosure (was this in writing?). Was the overdraft facility increased after this disclosure? Was there a DD facility set up to the gambling website (was it online gambling?). Has this situation resulted in a default on the account? Is that bank chasing a debt through the county court? Please feel free to give us all the facts before we can offer help and support

The disclosure was in writing. The bank concerned marked the account holder as not vulnerable and ignored the disclosure despite a clear admission from the account holder about their addiction. They then proceeded to allow the overdraft to be increased 15 times over a 2yr period. There was no DD facility however the account holder was allowed to use the overdraft and make debit card transactions to gambling websites and the bank did not prevent this.

[leclerc]

Re: Duty of Care to Gamblers

Wouldn't the bank have a duty to restrict borrowing having an instruction from the client not to advance money for certain activities regardless of any vulnerabilities? Don't you have to honour a contract to sell money as well as to buy it?

There is no way of restricting an account for certain activities apart from stopping the card in its entirety.

[leclerc]

Re: Duty of Care to Gamblers

The disclosure was in writing. The bank concerned marked the account holder as not vulnerable and ignored the disclosure despite a clear admission from the account holder about their addiction. They then proceeded to allow the overdraft to be increased 15 times over a 2yr period. There was no DD facility however the account holder was allowed to use the overdraft and make debit card transactions to gambling websites and the bank did not prevent this.

How are the vulnerable? What do you understand by that definition of a vulnerable customer?

[matth200]

Re: Duty of Care to Gamblers

I appreciate that you may not necessarily agree that the bank would ordinarily have a duty of care, however I would simply say that the bank concerned had an Executive Policy to "place restrictions on the account" when they become aware of a gambling problem from either the account holder or a family member. In fact the bank went further to state that they believe they would be at fault if they did not restrict borrowing or place restrictions on the account.

[MissFM]

Re: Duty of Care to Gamblers

Leclerc, can't you block certain activities on your account by prior arrangement?

[matth200]

Re: Duty of Care to Gamblers

There is no way of restricting an account for certain activities apart from stopping the card in its entirety.

I'm sorry but this is not correct. Banks can and do restrict debit and credit cards for business customers to prevent them being used for gambling transactions. They simply have to restrict it by merchant code. There is a great deal the bank's could do.

[wales01man]

Re: Duty of Care to Gamblers

After the first couple of times when the bank allowed the overdraft surely the person realised what was happening?
All seems strange are they now in a position not to repay the money wheras before they were?

[jon1965]

Re: Duty of Care to Gamblers

Hi
First off to Inca
Gambling is an addiction just as much as alcoholism or drug addiction and is an illness. There is something within the make up of addicts that causes this. That is a recognised fact.
Now as some of you know, my life has been pretty much ruined by an addiction to fruit machines, I have lost my job, nearly gone to prison and arguably been on the edge of a breakdown due to it all. I am not proud of it however I need to admit it.
There was someone on here recently who was an addict and had gone overdrawn by a lot but thought it wasn't an addiction.


As for the bank, I am afraid that they can not be expected to police an addicts gambling, however if they have let the O/D go unauthorised you may have a claim against them just as, if you had asked them not to increase the O/D limit and they did without any request.

I am not sure what help can be offered but rest assured that most people will not judge you, I can say without any doubt that PlanB Flaming Parrot Labman and more will be supportive/