MP WARNS OF CREDIT TRAP FOR THOSE WITH MENTAL HEALTH PROBLEMS

12.00.00am UTC (GMT +0000) Tue 6th Jan 2004

Guildford MP, Sue Doughty, has written to the Treasury to raise the issue of safeguards to protect mentally ill people who run up debts on credit cards and hire purchase.

She became aware of the problem when it was raised by the family of a constituent who, during bouts of mental illness, ran up huge debts. Although at other times he was well aware of the problems he would have in paying off the money, he was unable to stop himself entering into credit agreements.

Sue said:

"There is a loophole here which needs to be addressed. I want to know how the Government are viewing this problem, particularly as we expect bills to come forward soon on both Mental Incapacity and Consumer Credit.

"With aggressive promotion by lenders, household debt has soared. Bailiffs are now being called in to deal with debt arrears a staggering 20 million times a year. Unmanageable levels of debt, financial insecurity and threats from bailiffs will seriously undermine any improvements in the health of a person suffering from mental illness."