Martin Lewis's charity raises alarm over security of mental health sufferers' finances
The group wants better options for mental health sufferers to delegate their finances in a secure way
Consumer champion Martin Lewis's charity has raised the alarm after it revealed that one-in-five people suffering from mental health issues are sharing their PIN or bank details with someone managing their finances.
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According to research conducted in 2019, two-fifths of people with mental health problems needed help with managing day-to-day finances.
Consumer champion Mr Lewis says he wants to make it safer and easier for people to get support from a trusted person to manage their day-to-day finances.
Mental health problems such as reduced memory, increased impulsivity or lower moods can make it hard for people to manage things such as bills and accounts.
The charity said financial services firms often do not offer the necessary tools for getting support from a trusted person to manage everyday finances in a safe and simple way.
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For example, only some current account providers offer a carers' card that can be given to a trusted person to buy essentials such as groceries for them if they are too unwell to leave the house.
Some firms will let people allow a trusted person to receive alerts about their account, which can help them spot warning signs that someone might be struggling with their mental health or finances.
People can also use formal tools such as power of attorney to get support with decisions, but Money and Mental Health said its research suggests that many people with mental health problems struggle to use it.
One research participant said they were "coerced" into giving someone they had thought they trusted thousands of pounds.
Other participants raised concerns about losing their bank account as a result of breaching the terms of their contract, or getting their carer into trouble through unauthorised practices for sharing money management, the charity said.
Money and Mental Health is calling for current account providers to consistently offer a standard package of tools to make it easier for people to share money management in a safe and legally protected way.
At the minimum, this should include carers' cards; third-party account notifications that can be received by a trusted person; and third-party payment controls, such as the ability to block certain payments such as gambling, the charity said.
A voluntary agreement among financial services firms could be part of the upcoming Financial Inclusion Strategy, the charity said.
Mr Lewis said: "People want to be responsible for their own money. Yet some struggling with mental health issues know there are times they can't be responsible ... so the responsible thing for them to do at those times is to get a trusted family member or friend to help.
"Yet when they try, often the cogs of the financial system seize up. The tools needed just aren't widely available." he added.
Helen Undy, chief executive of the Money and Mental Health Policy Institute, said: "For many people with mental health problems, getting the support of a loved one to manage money is the difference between keeping their head above water financially or falling into serious money problems.
"It is unacceptable that people have to put themselves at risk of harm to get that support because banks aren't providing the right tools to do this safely and easily."
Kathryn Townsend, head of customer vulnerability at Nationwide Building Society, said: "The findings highlight the need for accessible and flexible tools that enable individuals to get the support they need safely.
The research included a review of the websites of 18 banks and building societies by Money and Mental Health, as well as analysis of the FCA's 2022 Financial Lives Survey. A survey of more than 2,000 people was also carried out by Populus for the charity in June 2019.
A UK Finance spokesperson said: "We recognise that managing money safely is important for all, especially when someone's mental health is under strain.
"Banks have developed a range of tools and services to support customers, such as third-party access options, spending alerts sent to a trusted person and limited-use cards for carers.
"There are, however, legal responsibilities banks must follow to protect customers and putting in place safe and legally protected ways to share account access can be complex.