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The repayments on the five-year loan took half of the 33-year-old's benefits and although his mother Jean did not blame the bank directly, she still believes its actions may have contributed to his death.

The loan came with costly payment protection insurance which, considering Michael was unemployed and lived on benefits, was largely worthless. His application form said that he was self-employed, his salary was paid into an account elsewhere and that he lived at his parent's house. Rudimentary checks would have shown this not to be the case.

Michael's case highlights the challenge that the financial services industry faces when dealing with mental health issues and the problem for parents struggling to cope with their child's illness. At any one time it is estimated that one in six people are suffering a mental illness.

John McFall, chairman of the influential House of Commons Treasury Select Committee, says: 'I have received numerous letters from desperate parents whose child who suffers from mental health problems has received literature from financial institutions offering them loans and credit cards.

According to the Citizens Advice Bureau, people with mental health problems are particularly vulnerable to high-pressure sales methods and offers of easy credit that can very quickly lead to unmanageable debt. It says that too often creditors respond with heavy-handed debt collection tactics instead of offering fair and sympathetic treatment.

Cases seen by CAB officers include a man with schizophrenia being handed a credit card even though he only had a basic bank account with a high street bank. He spent up to the £3,000 credit limit, not realising the implications of having to pay the money back, even though the bank knew he was living on income support.

In its report, Out of the Picture, the CAB claims that the loan application method employed by lenders makes it easy for people with mental illnesses to obtain unsuitable credit. Banks predominantly use credit reference files rather than affordability tests, so if an individual has a clean past they are regarded as a good credit risk.

However, to a certain extent, lenders also have their hands tied. The main problem for bank staff is that they have little information on which to base a credit application decision as they are not privy to customers' health information.

However, Mind wants better training for bank staff in dealing with mental health issues. The Finance & Leasing Association, an organisation that represents consumer lenders, has just produced a training video in conjunction with the CAB. It aims to help bank staff improve the advice and support they give to people suffering mental health problems, particularly when they are in debt.

Many people with mental health problems are quite capable of looking after their own financial affairs, but there are a significant number of people whose capacity to act is limited by their illness.

In this instance, it is possible for them to pass on the control of their financial affairs by handing a close friend or relative the Enduring Power of Attorney. The sufferer must complete an EPA form when they have the mental capacity to do so.

When it is deemed they are no longer mentally capable of looking after their own financial affairs the person named on the EPA form can apply to the Court of Protection to take over.

However, it is still possible for a trusted associate to take control of a sufferer's finances even when they haven't set up an EPA. The associate would again apply to the Court of Protection and once a doctor has assessed the person to confirm they are mentally incapable, it would appoint the friend or relative as a receiver.

Limits on how much involvment the receiver has in managing the person's account can be imposed, such as restricting it to a mortgage or pension plan.

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