Matthew Wall, Thursday July 17, 2008
'Bully-boy' tactics from lenders are causing real panic amongst debt-laden homeowners, with mediation often bypassed in favour of court action and repossession. Find out how to protect your home
If you thought your home was safe because your personal loan was unsecured, think again.
Borrowers struggling to keep up the repayments on their loans are now finding that lenders are taking them to court and threatening to repossess their homes without bothering with mediation.
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After seeking a County Court Judgement (CCJ) against you, lenders can then apply for so-called 'charging orders' which give them the right to secure the loan on your home. This means that they can then force an ‘order for sale’ and repossess your home to recover their money if you default on the repayments.
Evidence for an increase in such ‘bully-boy’ tactics is overwhelming. According to the Ministry of Justice, the number of charging orders granted in England and Wales soared from 9,207 in 2000 to 97,017 in 2007 – a tenfold increase.
