May 22, 2009
More Needs To Be Done For Repo Victims Say Experts
New research by leading UK advice agencies shows that some lenders are still not fully using Government schemes to help struggling homeowners, in particular those with secured loan problems.
AdviceUK, Citizens Advice, the Money Advice Trust and Shelter have conducted a survey of their advice experts to see how Government mortgage repossession schemes are working on the ground. It found that while 51% of advisers surveyed reported an improvement in mainstream lenders practices, only 20% of advisers report that sub-prime and secured loan lenders’ arrears collection practices have improved.
National Debtline also conducted a survey of its clients, which reflects the experiences of advisers. Only 39% of callers in arrears with their secured loan who were offered an affordable solution.
Joanna Elson, chief executive of the Money Advice Trust says: “As many as 800 repossessions happen a week; it is vital that lenders adhere to high standards. I welcome the fact that 51% of those surveyed found mainstream lenders’ practices have improved; clearly we need to ensure that this applies to all lenders.”
David Harker, chief executive of Citizens Advice says: “The results of these two surveys show that currently, mainstream lenders are doing much more to help struggling homeowners than sub-prime and secured loan lenders. We want all lenders to be doing as much as possible to prevent people losing their homes. This means providing an understanding and constructive response and helping their customers come to a manageable solution.”
“Citizens Advice Bureaux in England and Wales saw a 49% increase in the number of new enquiries about mortgage and secured loan arrears last year. People who are struggling to pay their mortgage should speak to their lender straight away and seek advice.”
SOURCE: CAB, Money Advice Trust, 15/05/09
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