A man who is a ward of the county mental health dept. wants a loan for a camper trailer. He has SS income and works part time for mental health. He has a great beacon score and pays on time. The camper trailer is way overpriced so he is refinancing his pickup to cover the collateral. Does he have the mental capacity to enter into a contact? It just doesn't feel right to let him get taken for a ride...

IMO, you're treading on thin ice. It's not your place, nor are you probably qualified to know whether this person is mentally incapacitated or not. Just because he's a ward of the county health department does not mean he's necessarily mentally incapacitated (although that would be one's first thought). If you truly feel this person does not have the mental capacity to enter into this contract then I would advise contacting your bank's attorney on how to properly proceeed.

Why not call the case worker who is also responsible for what happens to this individual. They may provide a lot of assistance in establishing the capacity of the borrower to enter into contracts.

If the individual is a ward, that means he has a guardian. I think you need to understand the scope of the guardianship before you proceed. Definitely get your legal department involved.

As pointed out, a ward of the court will have a guardian. That guardian is responsible to the court that appointed him or her. That makes this a fiduciary ownership. Check with legal, check with the guardian, and get a copy of the guardianship papers before you go any farther.