Money matters: cancelling contracts
If you cannot make decisions for yourself, this is called ‘lacking capacity’. This section explains what happens if you borrow money from a lender when you lack capacity. It also explains your rights to cancel unwanted items you buy, and what to do if you have borrowed money from a loan shark. This section is for people who experience mental illness and their carers.
- If you can’t make a decision for yourself, you may ‘lack capacity’.
- If a lender knows that you lack capacity to borrow from them, they are not allowed to lend you money.
- Lenders can refuse to lend to you if they have a good reason to think you lack capacity to borrow money.
- There are guidelines that could help you to show when a lender has been irresponsible.
- You can make a complaint if you are not happy with the way a lender has treated you.
- There are options for dealing with debts you can’t repay.
- You usually have a 14 day ‘cooling off’ period to cancel items you buy online, over the phone or by mail order.
- If you have borrowed from a ‘loan shark’ you can take action.
This section covers:
- Can I borrow from a lender when I am unwell?
- What can I do if I have a debt I cannot pay?
- How can I complain?
- Can I return goods I bought when I was unwell?
- What can I do if I have borrowed money from a ‘loan shark’?
These pages are created by Rethink Mental Illness' Advice and Information Service. Last reviewed in September 2017. Next review September 2020.
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