HOUSEHOLDS have been warned about an easy pin mistake that could see you lose cash.
New research by Money and Mental Health Policy Institute has found a fifth of people with mental health problems share their pin or bank details with people to get help with their finances.
Martin Lewis’ charity is trying to help people[/caption]
But the move could leave them at risk of fraud and abuse.
Prominent financial savings expert Martin Lewis, who founded the charity, is calling for action to make it safer and easier for people to get support in managing their money.
The new report, based on an analysis the Financial Conduct Authority’s 2022 Financial Lives survey, highlights that four in ten people (42%) with mental health problems have wanted help managing their cash day to day from a trusted person.
Common symptoms of mental health problems such as reduced memory, increased impulsivity or low mood can make it extremely difficult to manage bills.
The report noted that financial services firms do not consistently offer appropriate tools for getting support.
An analysis of the websites of 18 banks and building societies by Money and Mental Health found that only seven out of 18 providers offered a Carers’ Card.
This is a card given to a trusted person to buy them essentials if someone is unable too.
Three out of 18 provided third party notifications.
This is where a trusted person can receive alerts about someone’s account, which can help them spot warning signs they may be struggling.
And only one out of 18 providers enable careers to have partial access and control over someone’s account.
This allows a trusted individual to block or limit certain payments, after being granted voluntary access to there account.
People can also use formal tools such as Lasting Power of Attorney.
This offers a more permanent help, designed for mental capacity issues rather than mental health ones.
But Money and Mental health said its research suggests many people struggle to use it.
People at risk of fraud
The charity argue that a lack of adequate tools is resulting in people with mental health problems resorting to “risky workarounds”.
This could involve sharing pass codes.
One research participant said they were “coerced” into giving someone they thought they trusted thousands of pounds.
Other participants raised concerns about losing their bank account by breaching the terms of their contract.
Money and Mental Health has called for current account providers to consistently offer a standard package of tools to make it easier for people to share money management.
It proposed that all service providers offer carers’ cards, third party account notifications and third party payment controls.
A voluntary agreement among financial services firms could be part of the upcoming Financial Inclusion Strategy, the charity said.
This could be modelled on an agreement among current account providers to make basic bank accounts available to people who did not have one, it suggested.
It also proposed a review of the Power of Attorney system, to consider how it could be changed to better meet the needs of people with mental health problems.
Martin Lewis, founder and chair of the Money and Mental Health Policy Institute, 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.
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.”
What services do banking hubs offer?
BANKING hubs offer a range of services to bridge the gap left by the closure of local branches.
Operated by the Post Office, these hubs allow customers to perform routine transactions such as deposits, withdrawals, and balance enquiries.
Each hub features private booths where customers can discuss more complex banking matters with staff from their respective banks.
Staff from different banks are available on a rotational basis, ensuring that customers have access to a wide range of banking services throughout the week.
Additionally, customers can receive advice and support on various financial products and services, including loans, mortgages, and savings accounts.
