High street bank Lloyds TSB has defended itself from claims that it loaned £40,000 to a man who thought he was a millionaire and travelled the country handing out money to strangers.
The man, from Burtonupon-Trent, Staffordshire, allegedly built up £70,000 debt by distributing bundles of cash to Big Issue sellers and homeless people in the mistaken belief he was a wealthy philanthropist.
He reportedly suffered from bipolar disorder - manic depression - and was later sectioned under the Mental Health Act for 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.
Suman Antcliffe, a CAB money adviser, said: " Although he was on a decent wage, the bank should not be handing out these sorts of sums without doing more checks. He was not a homeowner and had already run up other debts."
A Lloyds TSB spokesman insisted stringent checks were in place for every loan application.
But he said they were unable to comment on the allegations as the CAB had not given them full details of the case.
"We're very concerned that these types of allegations are being published and there is no corroboration about this person's circumstances.
"If we're given the customer's name, then we'll happily investigate it fully," he added.
"If in any case there are allegations that something has gone wrong, clearly we will look at it very, very seriously."
Bipolar disorder is the most common form of manic depression and involves a person experiencing extreme "highs" and "lows", according to mental health charity Mind.
Some people with the condition can experience delusions and in "high" phases may behave extravagantly, including spending money and building up debts.