Mum with dementia has signed loan agreement

My 79 year old mother was diagnosed with Parkinsons in 2013 and has the dementia that goes with this condition.She has been in hospital for the last couple of months and will be going into a care home in the near future.
I have been dealing with her mail and affairs,she has had a replacement garage door & windows fitted by a company who cold-called her,she has signed up for loans to cover the work (which I am told has been overpriced-i'm not a homeowner so have no idea if that is so),one of these loans is for 10 years.
I sent a letter to the company from her GP stating she did not have mental capacity to sign the loan agreements,they have rung me today saying they are prepared to waive the loans on the understanding that the outstanding amount must be paid & I should put something in writing to agree this,they will ring back this afternoon to confirm.
I am not going to sign anything,I don't have Power of Attourney & am going through a solicitor to take out a Court of Protection Order which will take months.
Mum has got herself into a mess financially so is very overdrawn,she has a small amount of savings but I don't think they will cover the amount that the company are asking for as well as clear her overdraft.
Any advice would be welcome as I am so worried.
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Comments

  • JJ_Egan
    JJ_Egan Forumite Posts: 20,281
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    Citizens Advice Burea asap.
  • There must be some law (well I do hope so) about having "mental capacity" to make effective decisions.

    In your position, I would be looking to hunt out such a law.

    Hope it works out for you.
  • Nicksmum
    Nicksmum Forumite Posts: 21 Forumite
    I spoke to the CAB who say that I will have a fight on my hands as mum would have agreed to the price,however her mental capacity would be an issue as she wasn't capable of signing up to the agreement in the firstplace!
  • asajj
    asajj Forumite Posts: 5,122
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    please see this example

    http://www.bbc.co.uk/news/business-18374230

    Also Alzheimer's Society might have a helpline to answer your question.
    Hope it will be sorted
    ally.
  • pmlindyloo
    pmlindyloo Forumite Posts: 13,045
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    asajj wrote: »
    please see this example

    http://www.bbc.co.uk/news/business-18374230

    Also Alzheimer's Society might have a helpline to answer your question.
    Hope it will be sorted

    In the case quoted the money from the loan was still in the bank account.

    In this case the OP's mum has had improvements done to the house and doubtless increased its value.

    This, probably, has some bearing on this particular case.

    I am not understating the seemingly 'sharp practice' of what has happened - a loan for 10 years at her age is certainly open to question.

    However, it seems that the company has agreed to write off the loans but requires the outstanding amount - not sure what the OP means by this and how much it is.

    Personally if the amount is relatively manageable I would treat it as a straight forward non priority debt.

    The OP could write to the company with an explanation saying that they are waiting to get permission to deal with the financial affairs and to 'freeze' the debt until this time. This will save any interest being charged and hassling letters.

    Then when permission is obtained a financial statement can be done showing income and expenditure and then the OP can make a repayment offer.

    Just my opinion.
  • converted
    converted Forumite Posts: 152 Forumite
    Unless the law has changed from when I used to deal with debts (which was around 10yrs ago) there are a few points - the contract is with your mum, not you, therefore you should not sign anything to accept responsibility. In order to get their money back they would have to take your mother to court to get the money. The decision would then be down to the court - bearing in mind they would have to take a woman with Parkinson's and possible query over mental capacity to court & show that the person who cold called took her presentation at that time into account. Not good advertising for any company.
  • Mrs_pbradley936
    Mrs_pbradley936 Forumite Posts: 14,559
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    I remember something similar on Money Box a few months ago (Radio 4 Saturday at noon if you want to try and find it). Anyway this lady was a tenant and was persuaded to take out a loan for home improvements by one of the big banks.


    It all came to light when she died and the son went in to close her account and told it would have to go to probate. He said she did not have enough to need probate and low and behold the £25K appeared. This chap contacted Money Box and they helped him get back any out of pocket expenses.


    Not sure what can be done though because they are plenty of older people in full control of their faculties.
  • margaretclare
    margaretclare Forumite Posts: 10,789 Forumite
    I remember something similar on Money Box a few months ago (Radio 4 Saturday at noon if you want to try and find it). Anyway this lady was a tenant and was persuaded to take out a loan for home improvements by one of the big banks.

    A tenant?? Home improvements??
    Not sure what can be done though because there are plenty of older people in full control of their faculties.

    Yes, we are. We can't be discriminated against on grounds of age. Some of us have lived in this wicked world a long time, long enough to have seen it all, heard it all. Although, a tenant being persuaded to sign up to a loan for home improvements is something new.

    As to age, people are commonly living into their 80s and even longer, long enough to pay off a 10-year loan. We had a 10-year loan for our new kitchen, but that was about 15 years ago and we paid it off inside 4 years.

    Your Mum definitely has a case for mis-selling against the company concerned. They know that, and that is why they've made this offer.
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • kindlefirebabe
    kindlefirebabe Forumite Posts: 55
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    It might be worth contacting the Alzheimers Society. They have experience of people suffering from all forms of dementia and Parkinson's Disease. They will have come across this sort of thing before and should be able to advise. Good luck with this. I know what it's like to have to sort out a mentally incapacitated parent's financial affairs. It can be soul destroying.
    Mortgage free 10 years early and retired at the age of 55:j
  • margaretclare
    margaretclare Forumite Posts: 10,789 Forumite
    She was diagnosed with Parkinson's and Parkinsonian dementia in 2013 - that's only last year. When did she sign the loan agreement? Was she in possession of her faculties when she did so?
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
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