Debt write-off due to mental health illness and long term unemployment

MissNora

Hi everyone,

I’m looking for advice specifically on having a debt written off for my mother due to long-term mental illness and lack of capacity.

A card was posted through her door by ResolveCall, saying they attempted a visit regarding an account. No details were given about the original creditor.

Background (important):

My mum has had serious mental health issues for over 20 years.

She has been unemployed for over two decades and reliant on benefits.

She has never been in a stable position to manage money or credit.

She is currently detained in hospital under Section 2 of the Mental Health Act (28 days) due to severe deterioration, paranoia and delusional thinking.

She does not currently have mental capacity to deal with finances or correspondence.

She has a pattern of throwing away letters and belongings, linked to her illness.

About the debt:

We don’t yet know the original creditor.

Historically, she had catalogue / BNPL-type credit (e.g. Simply Be, Klarna).

Given her circumstances, she should not have been granted credit in the first place.

She was not working at the time and had known, longstanding mental health issues.

What I’m trying to achieve:

My aim is not repayment plans but a formal write-off on vulnerability and lack of capacity grounds.

Questions:

1. Given her decades-long mental illness, unemployment and current Section 2 detention, is this a strong case for permanent write-off rather than temporary forbearance?

2. Once the original creditor is identified, should I immediately request a write-off with medical evidence, rather than engaging with the debt collector?

3. Is the Debt and Mental Health Evidence Form (DMHEF) the correct route to support a write-off request in this situation?

4. Should enforcement and collection activity cease automatically once vulnerability and Section 2 detention are disclosed?

5. Is it appropriate to argue that the credit should never have been issued under FCA responsible lending and vulnerability guidance?

Any advice on best wording, steps, or escalation routes (e.g. complaints / FCA rules) would be greatly appreciated.

fatbelly

At the moment you are not even at the starting point.

A postcard from Resolvecall means nothing. Wait till you get something by post that actually makes a specific allegation about your mum owing money, how much, who to and under what reference, then send a prove-it.

It's probably statute barred and once you point that out, it's game over

elsien

If she’s in hospital under section, if you need to tell them that  they will put any action on hold. 

She may regain financial capacity as her mental health improves so it is probably premature to be looking longer-term at the moment. 

Doing an ostrich impression around debt for some people is an unwise decision not a reflection on their capacity. Even those in hospital under section - Dealing with patients in hospital mental health units  used to be part of my job, and despite their mental  ill health some remained financially  astute. 

I would suggest putting it on hold for now if you are able to ascertain that there is actually a debt and then seeing what happens next. 

Do you hold power of attorney for her because without that you may well find that no-one will talk to you anyway. 

MissNora

elsien said:

If she’s in hospital under section, if you need to tell them that  they will put any action on hold. 

She may regain financial capacity as her mental health improves so it is probably premature to be looking longer-term at the moment. 

Doing an ostrich impression around debt for some people is an unwise decision not a reflection on their capacity. Even those in hospital under section - Dealing with patients in hospital mental health units  used to be part of my job, and despite their mental  ill health some remained financially  astute. 

I would suggest putting it on hold for now if you are able to ascertain that there is actually a debt and then seeing what happens next. 

Do you hold power of attorney for her because without that you may well find that no-one will talk to you anyway. 

No I don't hold power of attorney.  I'm just daughter / main carer so not sure what to do

elsien

As Fatbelly said, don’t do anything for now. One card through the door is fairly meaningless.

Kind_Apple

Hi,

Sorry to hear what you’re going through. I was diagnosed with schizophrenia and just after I left the institution/hospital my sister managed to get almost all of my loans that I had taken out written off. Thank goodness.

I have sympathy for you and want you to know it is possible to get your mum’s loans written off.