Credit Agreements and Mental Illness

michael1983l

I was wondering if anybody has had experience or knows of somebody who has had experience disputing credit agreements on the grounds of diminished responsibility due to mental illness?

I have a lot of debt and I want to deal with it, but do not feel that I can approach the lenders just yet so I am currently keeping a low profile.

I suffer from Bi-polar disorder and went through an intense period of this illness during of which most of my credit was taken out. Now I am not saying that I am not responsible for the debts, I am just saying that I was unfit to enter into a contract at the time (through no fault of the lender) and I have a file cabinet full of medical records and opinions that would easily back this up in court. I guess I am kind of hoping that I could have the debts reduced to a managable level by the courts. It is nobodys fault in particular but I feel a little agreived to be punished for the next 10 years for something that I would never have done if I was not ill.

Can anybody please share their experience in battling for diminished responsibility or offer any advice that might be useful.

Thanks.

happy_bunny_2

Sorry, no good advice other than have you tried talking to national debt line or another debt charity? They may be able to give you a good contact if its not themselves.

Jonesy88

Hi,

Have you looked at the mse link at the top of the forum/thread which offers advice on money matters and mental health?

[url]Http://www.moneysavingexpert.com/cards/mental-health-guide[/url]

michael1983l

Thanks, I will read that PDF. As regards to the debt charities I have spoken to NAtional Debt Line but they lack the expertise in this area and do not offer much advice. I have been advised to seek legal help but obviously this comes at a cost of which I cannot afford.

michael1983l

Just skim read the PDF and it appears the only options are to continue paying the whole debt, but the lenders have to deal with the debt in house and not sell it on to debt collectors. Or apply to have the debt written off completely on the grounds of mental health, of which I understand is rarely granted. So I guess diminished responsibility does not come into question regarding civil debt matters?

lou1983

Glad your better.Will post some thoughts this evening once the kids are in bed... i am a mental health nurse so it is an area of interest

FireWyrm

In short, there is no 'get out of jail free card' or concept of 'diminished responsibility' (unless the consumer has a physical illness - or is childlike) in consumer law. The problem you face is that anyone can say exactly what you have and then claim that they dont have to or cannot pay back what is owed. Generally speaking, many lending agencies may be persuaded to write off what you owe if you had a physical illness that prevented you from ever working again, or better yet, a terminal illness, but mental illness...nope. You will eventually have to pay all of what you owe and your best options right now are to put in place whatever safeguards you can to prevent this happening again, while you are lucid. In the meantime, you can negotiate with your creditors, but dont attempt to approach it as 'this is a legal matter and you have to... etc' because you will likely be met with disbelief at best and even less co-operation than you had hoped for.

michael1983l

I see what you are saying and agree with most, but I do not think anyone can just claim to be mentally ill especially not Bi-polar anyway, it took 9 months of regular sessions with a consultant psychologist before they decided to diagnose Bi-polar. It is not something they diagnose lightly and I would have stacks of medical records to present as evidence to back up the claims. Still though I think you are right and that they are unlikely to write off the debt as it would set a precidence.

Thomas_Hardy

You are looking to argue that you lacked capacity at the relevant time, and as already mentioned, the threshold for this was high. What else was going on in your life at the time - were you able to hold down a job, were you hospitalised at all?

iolanthe07

As I understand it, you have to have been sectioned under the Mental Health Act to have any hope of convincing a lender that you were not competent to sign an agreement.

michael1983l

Thomas_Hardy wrote: »

You are looking to argue that you lacked capacity at the relevant time, and as already mentioned, the threshold for this was high. What else was going on in your life at the time - were you able to hold down a job, were you hospitalised at all?

I just about held on to my job but my employer was made aware of the situation and adjusted accordingly. I was on lots of medication at the time but was not hospitilised as the main criteria for that is being a danger to myself or others of which I was not in their interpritation. I was classed as extremely high risk for suicide.

Like the poster below has stated though, I think it is unlikely that they would consider this and I accept that really. It is just a shame that my foreseable future is ruined because of the effects of an illness I had no control over.