Debt and Manic Depression ??

thegirlyarwood

Hi I am after a bit of advice

My sister has been diagnosed with bi-polar syndrome, otherwise know as manic depression and is unable to handle her financial affairs herself at the moment.

It has come to light that she has signed an agreement with a company called 'Log Book Loans' who have given her 2k secured against her car. The problem I have is that she has limited recollection of signing this agreement and had she been of sane mind would not have signed at all.

Does anyone know how she stands legally? I understand there may be some means for a legal right of redress but am unsure what to do and at the moment as she has been sectioned under the mental health act I am acting on her behalf with all her creditors.

Any advice would be greatly appreciated.

It does not appear that this company is registered with the FSA also.

Thanks

amosworks

Bump!
Sure some legal eagle will be along to help hun. Sorry to hear about your sister, but hopefully things are on your side.

lynzpower

hello there
iM sorry to hear of your situation.

I would firstly ask has she signed over her affiairs to you? Ie acting as ( god the terms escaping me now) her and on her behalf. It is probably worth speaking to the social worker in the unit where she is to get more advice on it if no one here is able to come up with the answer. Otherwise no one will speak to you under the Data Protection Act.

I would also speak with consumer direct to find out the answer to this. All organisations have some level of duty of care, however, they may be breaking the law anyway as a finance co that are not registered with companies house.

I really dont know and sorry I cant offer more, but these are my first thoughts

EDIT ( power of attorney, thats what I was looking for before)!

thegirlyarwood

thanks for the help so far.

I am obtaining a letter from her psychiatrist today explaining the illness and the reasons why she is unable to handle her financial affairs herself. Hopefully this will suffice in the meantime. The problem with her illness is that if you approach her with request for power of attorney then this may provoke an 'episode' which will halt her progress so far.

I have contacted this company and advised them that this is what I would be doing but as you can imagine they were no help at all. There are lots of other debts and creditor letters being received and most are putting things on hold until they hear from her doctor which is great.

Any further advice would be greatly appreciated.

Furthermore the total amount of interest quoted in the agreement with Log Book Loans was 259%, surely that can't be legal?

MrsTinks

The best place for legal help on this seems to be CAB... Ultimately I would contact them and ask them for help about the legal side fo things to do with your sisters affairs as she is sectioned. I would lso contact any help lines that you can find for where she is sectioned as places like this often have a lot of help available to relatives of people in their care.

Best of luck!

lynzpower

thegirlyarwood wrote:

thanks for the help so far.


Furthermore the total amount of interest quoted in the agreement with Log Book Loans was 259%, surely that can't be legal?

:eek: :eek: OH MY GOD :eek:

Jesus wept, thats insane.

PLease report this to trading standards as a matter of urgency.
Hopefully there is some reason why this outfit can be closed down, and or prosecuted.

lynzpower

just called them up to clarify what the APR is ( god im bored :rotfl: and what a surprise the person on the phone "didnt know" " couldnt tell you" etc.

This is disgusting.

spud30

I just had a look at Log Book Loans website.

They secure loans against cars by taking the log book away from the owner.

APR isn't mentioned anywhere on the website.

MinnieSpender

Theoretically, a person with a mental disorder can make a contract, and it can be upheld, although there are rustlings in Parliament to clarify matters. You might find the information on here useful:

http://www.citizensadvice.org.uk/index/pressoffice/press_index/press-50122.htm

[STRIKE]Have you contacted the loan company to explain the situation[/STRIKE]? EDIT: we appear to have crossed posts here!

I think in the first instance you should have a word with your local CAB to see how they can help. Good luck.

KittyKate

spud30 wrote:

I just had a look at Log Book Loans website.

They secure loans against cars by taking the log book away from the owner.

APR isn't mentioned anywhere on the website.

Is that legal? If it is, it's decidedly dodgy. It'd be cheaper to buy a new car, at their rates, by the sounds :S

Mike_St_Helens

1st of all... I have some experience in Power of Attorney... Make sure you have a solicitor involved, then you can act completley on her behalf if she agrees and the finance co's must abide by this.

Is her car on finance ?

If so the 'log book loan' is not enforcable as the car is theoretically the property of the HP co.

Good luck !

MD