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Lenders 'piling on extra charges'

Industry Insurance News - Published: 15/02/2008
Lenders 'piling on extra charges'
Lenders are not doing all they can to support mortgage-payers faced with repossession and instead are "piling on extra charges", according to the Citizens Advice Bureau (CAB).

In a statement, it says that, contrary to what many are preaching about helping out customers who are in dire straits, companies are all too quick in taking borrowers to court rather than putting in place a repayment plan.

The CAB says that in 2007 it saw 57,000 people - an increase of 11 per cent on the previous year - going to them with problems associated with mortgage and secured loan arrears.

It wants there to be a better benefit system for debtors struggling to cope, saying income support for people with mortgages (ISMI) was "completely inadequate".

The CAB went on to add: "We also want to see tougher enforcement of existing regulation of mortgages, and for the same regulatory system to apply to all mortgages and other secured lending in future, instead of the fragmented regime that currently applies."

It concludes by urging anyone "who is falling behind with payments on a mortgage or secured loan to seek, free, confidential advice from any Citizens Advice Bureau".



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