Debt and Mental Health

[stephen22]

Good Morning All.

I am working with people with mental health problems as part of a charity. Most times creditors are very understanding.

However, I am after some thoughts on the experienced beagles out there on a situation.

A client has a poor credit history, this started with defaults and coincides with the diagnosis of a mental health problem. Looking at their file you can see loans from provident and other high interest lenders and payday loans. They are now seeking help as they were unaware of the help available.

They were given the loans, and you know the rest. It all spiraled. They had a CCJ issue at the time and we are applying to have it set aside.

My question: With some lenders can we start applying unfair relationships grounds?
Do we plead compassion to these companies.

As a mental health charity, we also looked at the whether these companies, once informed of the person's condition can be seen to be in breach of that.

We also want to try and help those who have genuine and life changing mental health, depression, bi polar and personality disorders and PTSD to get back on track.

My final question: Once we have dealt with the DCA, if they won't budge on removing or amending the credit file, could we argue this.

I know it reflects a person's credit history, but if we prove they were not in a frame of mind at the time and that this created unfair relationship, surely there must be a stated case for it??

[CYNthesys]

Re: Debt and Mental Health

Hi
It is my view that once a lender is made aware of a debtors mental illness, the lender ought to make reasonable adjustments to ensure that the debtor is not treated less favourably than a debtor with full capacity. If it means the creditor has to change his practices, policies and procedures, then so be it.

[FlamingParrot]

Re: Debt and Mental Health

It's not uncommon for sharks like Provident and other doorstep lenders and payday lenders to take advantage of vulnerable people, whether for reasons of age, credit history or poor health (including mental health issues).

There was a BBC program a few months ago on that subject, this article talks about these issues ---> http://www.bbc.co.uk/news/business-19748048

[labman]

Re: Debt and Mental Health

They should be asked to abide by the MALG guidelines in particular, and there are mentions of vulnerability in many other sets of guidelines which may or may not apply to the company in question. The OFT Debt Collection Guidelines also mention people who are vulnerable, and the National Standards for Enforcement Agents if bailiffs are involved.

I provided you with links to all of these prior to Christmas, but if you need them again, just shout.

[leclerc]

Re: Debt and Mental Health

http://www.malg.org.uk/dmhdocslist.html

The above might be what Labman is saying.....

[FlamingParrot]

Re: Debt and Mental Health

These websites provide useful information and resources:

http://www.oft.gov.uk/about-the-oft/...city-guidance/

Debt collection and mental health

DMH Documents

[enquirer]

Re: Debt and Mental Health

Yes, moneylenders are sharks who will take advantage if they can.

On the other hand, one must take care that mental illness is not seen as a get-out-of-jail card that magically absolves the sufferer from all personal responsibility.

[FlamingParrot]

Re: Debt and Mental Health

Yes, moneylenders are sharks who will take advantage if they can.

On the other hand, one must take care that mental illness is not seen as a get-out-of-jail card that magically absolves the sufferer from all personal responsibility.

Some mental health issues can get people deep in debt, gambling addiction being a prime example. Of course in a case like this the lender couldn't be expected to know the borrower has a problem, but the whole issue is not just about responsibility but also the approach taken by creditors. The threatening letters, phone calls and texts they often send could easily send a vulnerable person over the edge.

Threats of doorstep visits frighten a lot of people, particularly the vulnerable, who are not aware that such unwanted visitors have absolutely no rights and are often mistaken for bailiffs. Some payday lenders even threaten debtors with criminal action, which is scary enough even when you have no mental health problems.