Getting debts written off on mental health grounds

stupidaspie

Early this year, my mum, who's on Universal Credit, took out a £37 a month phone and tablet contract with EE. The paperwork says it's a no change of mind policy. She never seems to remember this when she brings the subject up, saying she's going to try to get out of it. On the face of it, it sounds impossible, but is it?

I've heard of people getting debts written off on mental health grounds. I think there is a mental health issue, but I'm not sure if she would accept this or be willing to 'use' it. She's been on antidepressants for two years, had input from mental health services which she may have discharged herself from, and many years ago there was a hospitalisation, but I don't know if they're sufficient grounds to get debt written off.

[Deleted User]

Only if she made the lenders aware before applying for the money.

Did she tell them?

stupidaspie

I'm pretty sure she didn't.

paulburns1984

To complicate things, the key aspect is whether she had mental capacity to make the decision to lend the money at the time. Having a mental health problem doesn't automatically conclude that you lack mental capacity. On the contrary, a person is assumed, under the mental capacity act, to have capacity to make decisions for themselves unless proven otherwise. It would likely be difficult to prove this retrospecively. You might be able to appeal to the good will of the lender, but I wouldn't hold my breath.
There's an ethical aspect here as well as all too many people are currently using mental health problems as a get out of jail card (not suggesting this is the case here btw), so you may want to consider whether she did actually lack capacity or if you're just looking for something in hope/desperation.

stupidaspie

paulburns1984 said:

To complicate things, the key aspect is whether she had mental capacity to make the decision to lend the money at the time. Having a mental health problem doesn't automatically conclude that you lack mental capacity. On the contrary, a person is assumed, under the mental capacity act, to have capacity to make decisions for themselves unless proven otherwise. It would likely be difficult to prove this retrospecively.

I think she's got undiagosed BPD if that means anything to you. A lot of her behaviour is implulsive and self-soothing (like spending money she hasn't got), and she seems to have a very tenuous grasp on reality (doesn't seem to realise/care that she's storing up difficulty).

monetxchange

I think lack of mental capacity would extend more to things like her being unable to understand that it would cost her money or that she didn't understand the basics of being contracted into something. It seems more like she does understand the concept but disregards consequences - I think more a ground for help to avoid this happening again, not one for getting the contract written off.

Exodi

stupidaspie said:

She's been on antidepressants for two years, had input from mental health services which she may have discharged herself from, and many years ago there was a hospitalisation, but I don't know if they're sufficient grounds to get debt written off.

If that was sufficient grounds to get debt written off, I think most of the financial sector would be bankcrupt, especially announcing it retrospectively.

Andyjflet

I work in the finance sector, and part of my obligation under the FCA is to understand that if the person doesnt seem right or they dont seem to understand their obligations then I should terminate the application and seek further advise. Its hard to spot as I do get people walking in the door buying £100k cars on the spot. After doing it for so long though I know the signs and the discussions follow a path of then what I would consider normal or abnormal capacity to grasp their commitments.