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Lack of support from Barclays: Debt and Mental Health

RFMS
Posts: 13 Forumite
Hello
I have been on MSE a couple of times regarding difficulties a relative is having with his mental health.
He has been sectioned now for over 6 months and he is likely to be in hospital for at least another few months but probably much longer.
He has a loan with Barclays Bank (~£13k) and he has run out of money. He has no assets and sends any and all money he gets to his family for essentials. He is very distressed about this.
We have read this very useful document from MSE:
http://www.moneysavingexpert.com/images/attachment/mentalhealthguide.pdf
Some really useful advice from this guide:
It says many banks now have specialist teams to deal with customers with both debt and mental health problems. We seem to be finding it impossible to get my relative in contact any sort of specialist team at Barclays that understands how to deal with people with Mental Health difficulties. He keeps on getting diverted to Consumer Finance which seems to actually be a Collections Department and from what I can tell they don't seem to be handling the situation properly.
I have also been into the branch to attempt to get information on any specialist department but they said this was the first time they had this type of question and couldn't find any information that covers this situation. Also they couldn't go into specifics about my relatives account unless I had power of attorney, which I want to avoid at this stage if practically possible.
The doctors have also provided a Debt and Mental Health Evidence Form (DMHEF) stating his condition and inability to work or conduct daily tasks. The doctors said the bank would likely take positive steps to support the situation e.g freeze the account until he gets better or in rare cases write off debt. We sent this off but the bank rejected it on the basis that according to the doctors notes, his condition was a pre-existing condition before he took out the loan. However I called the bank with my brother and explained that under Mental Capacity Act (more great advice from the MSE guide) banks cannot enforce contracts if the customer had insufficient mental capacity to make that decision at the time and we would ask they freeze the account until he is better and can handle the situation. They said they could no longer comment now that the form had been rejected.
This is all very distressing.
Does anyone know how we can get in contact with the right people at the bank to get the right support?
Thank you
I have been on MSE a couple of times regarding difficulties a relative is having with his mental health.
He has been sectioned now for over 6 months and he is likely to be in hospital for at least another few months but probably much longer.
He has a loan with Barclays Bank (~£13k) and he has run out of money. He has no assets and sends any and all money he gets to his family for essentials. He is very distressed about this.
We have read this very useful document from MSE:
http://www.moneysavingexpert.com/images/attachment/mentalhealthguide.pdf
Some really useful advice from this guide:
It says many banks now have specialist teams to deal with customers with both debt and mental health problems. We seem to be finding it impossible to get my relative in contact any sort of specialist team at Barclays that understands how to deal with people with Mental Health difficulties. He keeps on getting diverted to Consumer Finance which seems to actually be a Collections Department and from what I can tell they don't seem to be handling the situation properly.
I have also been into the branch to attempt to get information on any specialist department but they said this was the first time they had this type of question and couldn't find any information that covers this situation. Also they couldn't go into specifics about my relatives account unless I had power of attorney, which I want to avoid at this stage if practically possible.
The doctors have also provided a Debt and Mental Health Evidence Form (DMHEF) stating his condition and inability to work or conduct daily tasks. The doctors said the bank would likely take positive steps to support the situation e.g freeze the account until he gets better or in rare cases write off debt. We sent this off but the bank rejected it on the basis that according to the doctors notes, his condition was a pre-existing condition before he took out the loan. However I called the bank with my brother and explained that under Mental Capacity Act (more great advice from the MSE guide) banks cannot enforce contracts if the customer had insufficient mental capacity to make that decision at the time and we would ask they freeze the account until he is better and can handle the situation. They said they could no longer comment now that the form had been rejected.
This is all very distressing.
Does anyone know how we can get in contact with the right people at the bank to get the right support?
Thank you
0
Comments
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unless he owns his own house has he considered a DRO (debt relief order)?
might be worth reading up on if it might apply0 -
My first thought was a DRO as well, would he be well enough to speak to anyone about it?ISA £1675
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May be worth posting something on twitter if you have any followers as lots of coy's seem to monitor twitter for comments & it may give them a bad rep, so stuff gets sorted. Same with face book.0
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Barclays are bloody awful to deal with in my experienceDecember 2011 £180000 :eek::eek::eek::eek:
LBM January 2013 £96000
July 2014 £690000 -
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One thing that may be hampering things is that on the one hand you are saying that your brother? doesn't have capcaity to manage his finances but on the other it doesn't seem like anyone else has the proper authority to do so either? I would imagine that this makes it difficult for Barclays. I don't know if they are allowed to deal with another family member in this situation?
Irrespective of that if they can't or won't sort it out then you will need to put in a formal complaint to them. If they are still unwilling/unable to sort it out then you can refer it to the ombudsman. I don't believe you can go to the ombudsman until you have exhausted the banks complaints procedures and although you have been complaining to them, it doesn't sound like it has been recorded as a proper, formal complaint and doesn't sound like it has been dealt with by complaints.
Get a formal complaint in (write a letter and keep a copy) and wait and see what happens. Then take it to the ombudsman.
Best of Luck
dfMaking my money go further with MSE :j
How much can I save in 2012 challenge
75/1200 :eek:0 -
You say he has no assets so he could potentially go bankrupt. Obviously it doesn't sound like he is in a place where he can make that sort of decision but it is obviously a possibility for the future.
Could you clarify for whether he owns his own home or rents?
dfMaking my money go further with MSE :j
How much can I save in 2012 challenge
75/1200 :eek:0 -
Hi - sorry for the delay in responding, it has been a tough few days getting a proper hold of the complete situation.
He does not own any property or car, and does not rent. He has been in a locked ward in a mental health hospital for months now.
It also appears his outstanding loan is larger than I expected. About £14,500k
His family have moved to away, I cannot determine how long ago but it appears that he has been overpaid child benefit. This will likely put him over the 15k mark for a DRO.
I have called step change and they have booked us in for a telephone appointment later this week.
I have to say Barcalys have been terrible, I have been promised that they will call me back to at least inform we who my brother should call but as it has been pointed out on this thread that I have no power of attorney and no one else does. So everyone is very limited in what we can do however Barcalys should be more considerate here considering the situation.0
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