Lenders rush repossessions
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Mortgage lenders are ‘banging through’ repossession cases to beat the introduction of tighter court protocols requiring them to offer more concessions to struggling clients.
The Bankruptcy Advisory Service, an independent debt advice body, said banks were pushing ahead with repossession cases as quickly as possible.
‘Pre-action protocols’ issued by the Civil Justice Council come into force on 19 November. This will make repossession a ‘last resort’ preceded by discussions between the parties on extending the term or changing the type of mortgage, deferring interest payments or capitalising arrears.
Court figures show that the number of repossession cases jumped 70 per cent between March and June.
Gill Hankey, director of the Bankruptcy Advisory Service, said: ‘There’s no doubt that lenders are banging through repossession cases. Lenders should be considering all the common sense things before tipping a family out onto the street, but they aren’t.
‘I’m not convinced that all the banks and building societies will comply with the new protocols.’
A Council of Mortgage Lenders spokesperson said: ‘It’s up to each lender to decide when to enter a repossession claim.’
She said rising repossession rates were not due to the forthcoming court protocols, because Financial Services Authority rules along similar lines already exist.
‘It’s much more likely to be down to the worsening economic environment,’ she added.
Shelter chief executive Adam Sampson said: ‘The protocols are a major step forward in helping thousands keep their homes.’
Readers' comments (1)
Mina Savis | Sat, 22 Nov 2008 23:02 GMT
Unfortunately despite Mr Brown's hard efforts to stave off repossession my lender has not followed any part of this protocol and now is evicting me. Where is the justice in this.
I have written to them and explained I am seeking advice and will write my proposal to them but they have gone ahead and applied for eviction order. They have added all their legal costs to my arrears and have not reduced payments or added my arrears to my mortgage nor have they increased the length of mortgage.
Where should I go from here? Any advice will be highly appreciated and this may be helful to other people who are in my situation as well.
Many thanks
Mina Savis
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