Loans taken on while manic (bipolar)

Voodoominx

Hi all,

I have a number of outstanding loans I took out while manic. This was prior to my bipolar diagnosis although I was under the mental health team.

I wondered if it would be worth getting my care co ordinator to complete a form giving info, with a covering letter from me. The intense period of borrowing over approx 18 months was out of character and, I believe, constitutes irresponsible lending. (I have a debt from a lease car that arose since I've been in treatment and have made a payment offer for this).

Any advice greatly appreciated- I understand the 3 letter process is a load of rubbish, so should I use one, and what do I say in it?

Thank you.

poppasmurf_bewdley

If you didn't know at the time of taking out the loans that you were suffering mental health problems, how on earth would the loan companies be aware? And therefore, how can there be claims of mis-selling?

elsien

If you're looking to get them written off, that's only likely to happen if there's no realistic prospect of recovery and payment.
It used to be easier to have debts looked at if you were bipolar but that's no longer the case.

Have you looked at the ombudsman guidance:

https://www.financial-ombudsman.org.uk/publications/ombudsman-news/138/138-case-studies-mental-health-debt.html

The theme seems to be that if the lender couldn't have been aware of the MH issue and its impact, it's not reasonable to expect them to have acted differently. Would you want a blanket ban on lending because of your MH, even in the times when you are stable?
The letter from your CPN could help if you need to negotiate freezing interest and agreeing a repayment plan.
Have you contacted any of the debt charities for help?

Bermonia

You would always be relying on goodwill from the lenders, as such I would certainly avoid making any kind of threats or that goodwill will get used up pretty quickly.

If you did not inform the lender of any mental health conditions then how could they possibly be responsible for your actions.

diggingdude

At best you will get them to freeze interest i would have thought. They didn't lend irresponsibly