Financial sector gains access to information on Mental Capacity Act

31st May 2007

Banks, building societies and financial regulators can now access information on how the Mental Capacity Act 2005 (MCA) affects their business. ‘Barriers to financial inclusion: understanding the Mental Capacity Act for banks and building societies' launched today by Employers' Forum on Disability (EFD), is the only comprehensive report that examines the MCA from the financial sector viewpoint.

Now that the rights of disabled people with a limited or fluctuating mental capacity are enshrined in the MCA, the financial sector needs to prepare for the impact this will have on their products and services. EFD found that the complex legislation is a minefield for many financial service providers.

Some of the key recommendations of the report are:

• Banks and building societies train staff on how to welcome and serve customers with reduced or fluctuating mental capacity, including knowing what reasonable adjustments should be considered.
• Disincentives to providing time and support to customers who need help using e.g. ATMS, explaining Chip and Signature as an alternative to Chip and PIN should be removed.
• Lenders should disregard Disability Living Allowance when considering a borrower's Financial Statement to repay a debt.

Susan Scott-Parker, chief executive of EFD, says: "From our conclusions we found that in some instances, the very measures introduced to give people that lack mental capacity access to financial services are thwarted by a system that is inflexible, impersonal and open to abuse.

"The overall challenge is for banks and building societies to make their services as inclusive as possible without exposing the financial institution or their staff to greater risk of legal action."

Ends

Notes to editors

Media enquiries, please contact:

Brenda Otema, Communications & Marketing Officer
Employers' Forum on Disability
Email: brenda.otema@efd.org.uk
Telephone: 020 7403 3020

About Employers' Forum on Disability

Employers' Forum on Disability is the employers' organisation focused on disability as it affects employers and service providers. With over 300 members, EFD represents organisations that employ around 20 per cent of the UK workforce.Since its establishment in 1991, EFD has worked closely with government and other stakeholders, sharing best practice to make it easier to employ disabled people and serve disabled customers.

www.efd.org.uk