Tue 31st Oct, 2006
Loans Discriminate Against Disabled
Despite government regulation and groups lobbying for change, banks discriminate against people who are disabled. If they do lend to someone who is disabled, they are chastised. Lloyds TSB defended itself today against claims that it lent £40,000 to a customer who suffered from bipolar disorder.
The man, from Burton-upon-Trent, Staffordshire, built up a £70,000 debt by giving away money to homeless people in the belief he was a philanthropist. He reportedly suffered a form of manic depression, and was eventually forced to seek treatment. Financial advisers at the town’s Citizens Advice Bureau investigated his case and criticised Lloyds TSB for allegedly not making more stringent checks into his condition.
On the other hand, people who are on a disability pension cannot receive a loan, while people who make less, and can find themselves unemployed at any time, can obtain a loan up to three times their yearly income. This prevents these disabled people from purchasing homes and automobiles.
Disabled people receive lower incomes while they need to pay extra costs needed to adapt to their impairment. The problem of lending money that disabled people cannot pay back has resulted in 2 out of 5 seeking loans to try and improve their standard of living.
The Leonard Cheshire disability charity is asking the UK Government and the credit industry in general to help solve the problem. A survey reveals that 9 out of 10 of disabled people run out of money on a regular basis.
The problem is, disabled people who do not qualify for affordable credit, will turn to high interest unsecured loans like credit cards, which will compound the problem.