Mental health and debt

Creditors should operate a suitable business practice for identifying and dealing appropriately with borrowers who they understand or suspect may have mental capacity limitations. 

In Section 7.2 of the Financial Conduct Authority’s Consumer Credit Source Book (CONC) they state that Firms must establish and implement clear, effective and appropriate policies and procedures for:

(1) dealing with customers whose accounts fall into arrears;

(2) the fair and appropriate treatment of customer who the firm understands, or reasonably suspects, to be particularly vulnerable.

Customers who have mental health difficulties or mental capacity limitations may fall into the category of particularly vulnerable customers.

In developing procedures and policies for dealing with customers who may not have the mental capacity to make financial decisions, Firms may wish to have regard to the principles outlined in the Money Advice Liaison Group (MALG) Guidelines "Good Practice Awareness Guidelines for helping Consumers with Mental Health Problems and Debt".