1. Expert Q&A: Protecting a person with dementia from financial abuse - Weds 26 June, 3:30-4:30 pm

    Financial abuse can have serious consequences for a person with dementia. Find out how to protect a person with dementia from financial abuse.

    Sam, our Knowledge Officer (Legal and Welfare Rights) is our expert on this topic. She will be here to answer your questions on Wednesday 26 June between 3:30 - 4:30 pm.

    You can either post questions >here< or email them to us at talkingpoint@alzheimers.org.uk and we'll answer as many as we can on the day.

outstanding loan to large bank/ care home fees Which has precedence.

Discussion in 'Legal and financial issues' started by jack sprat, Nov 26, 2015.

  1. jack sprat

    jack sprat Registered User

    Nov 26, 2015
    My mum went into a care home 2012 and i eventually sought deputyship for her 2014. she was self funding, because of the family home.
    It became apparent that since she went into the home Ken(husband) was getting into financial difficulties ( Mums pension and attendance allowance now paying care home fees).
    On investigation i discovered a bank loan (high interest rate) in my mothers name, taken out in 2007, 2 yrs after my mother was diagnosed with Alzheimer's (obviously she could not have instigated this, nor understood what it was about)
    The bank disagreed , when i asked for it to be investigated and outstanding balance quashed.
    i have since contacted the FOS who found against my mother and in favor of the bank.
    Does anyone have any concrete advice about where to go from here.
    I am reluctant to accept this finding, i feel very strongly that banks should be more sensible when dealing with vulnerable elderly people and should ensure they are not sold financial packages they cannot guarantee sustaining.
  2. fizzie

    fizzie Registered User

    Jul 20, 2011
    I am amazed that the bank can justify a loan to someone with Alzheimer's post diagnosis. I thought that if the person did not have capacity then they cannot be liable. There must be some legal recourse on this but i think your only option would be to take the Bank to Court. I wonder if someone would take it on on a no win no fee basis.

    have a look at this

    there is another thread on here too

    someone else will probably have direct experience of this

    Did the FOS give you a final decision or was this initial findings - if the latter you can go back to them
  3. nitram

    nitram Registered User

    Apr 6, 2011
    North Manchester
    You need legal advise.
    My first step would be to try and a get professional medical statement that you mum did not have capacity at the time the loan document was signed.
    Was it signed at the bank or elsewhere?
  4. sleepless

    sleepless Registered User

    Feb 19, 2010
    The Sweet North
    But is it the case that a diagnosis automatically means the person lacks capacity?
    Surely not.
    Or we would not hear so many accounts on here of vulnerable people being left in dire straits because according to some professional 'they have capacity to make decisions'.

    Close family had no idea about my OH's diagnosis and didn't even suspect he had dementia when I told them three years later, so how would someone know if they were meeting them for the first time?

    Yet another Dementia Dilemma.
  5. sleepless

    sleepless Registered User

    Feb 19, 2010
    The Sweet North
    Just to add -- I agree that banks are (and certainly were leading up to the credit crunch) not careful enough when lending large sums. They surely should require proof of income to show that the repayments are able to be met. I wonder did they do this in your mother's case?
  6. LynneMcV

    LynneMcV Volunteer Moderator

    May 9, 2012
    south-east London
    It is difficult isn't it?

    The question is whether or not the diagnosis confirmed lack of capacity or not. My husband was diagnosed in May 2012 but he had capacity. He went on to make a will and to agree POA for myself and our grown up children over his finance and property affairs. The POA was registered straightaway. It wasn't because he lacked capacity, he knew exactly what he wanted to do with the money - what he needed was people to sort out the process for him because that was the bit he struggled with - so at his request we put money in an ISA, some in premium bonds and some in savings.

    Some 3.5yrs after diagnosis he still has as big a say as ever in the finances and I manage our financial affairs as best I can, taking his wishes into consideration as far as possible.

    Just prior to diagnosis my husband took out a large loan in his name via the bank. Yes, he would have had dementia at that point but I can't claim that he lacked capacity given the fact that he made several major decisions post diagnosis - and continues to do so.

    I have since paid off the loan and I'd be lying to say that it doesn't rankle with me that he asked for the loan (and was given it) in the first place - but then everybody makes unwise choices in life.

    I do hope that your mother's situation is resolved satisfactorily, I know how horrible it is to have this kind of thing looming overhead all the time.
  7. fizzie

    fizzie Registered User

    Jul 20, 2011
    That is true you are quite right, my bad, of course diagnosis doesn't mean lack of capacity,not thinking straight sorry. It should mean that there ought to be some kind of warning flags raised though

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