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Citizens Advice response to MoJ mortgage repossession figures

9 May 2008

Citizens Advice Head of Consumer Policy officer Sue Edwards said:

“We have seen a very sharp rise in the number of people coming to us with mortgage arrears*, and evidence that in too many case lenders are using court action as a first rather than a last resort.  

“Many Citizens Advice Bureaux run county court advice desks, providing eleventh hour advice to homeowners at risk of repossession.  Research has shown that getting advice – even at this late stage – can help the majority of people come to a workable agreement with their mortgage lender and save their homes, so we very much welcome the government’s announcement of more money for court advice desks.

“But we want to see all lenders doing everything in their power to avoid things getting to this stage.  This means treating borrowers in arrears fairly and sympathetically, and being willing to negotiate with borrowers in trouble.  Our evidence shows that all too often this isn't happening, which is why we need a 'pre-action protocol' - measures to ensure only those cases where no agreement is possible end up in court.”

Notes:

* Citizens Advice Bureaux in England and Wales saw mortgage arrears problems go up by 35% in the first two months of 2008 compared with the same period in 2007.

In December 2007 Citizens Advice published an evidence report, Set up to fail, showing how dubious advice from brokers, irresponsible lending decisions and aggressive arrears management by sub-prime lenders are driving the current increase in mortgage arrears, court action and repossessions.  The report also shows how the regulation and safety nets currently in place are failing to protect vulnerable borrowers.

Set up to fail: CAB clients’ experience of mortgage and secured loan arrears problems.

CAB top tips if you start to fall behind on your mortgage

Notes to editors

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see New windowwww.adviceguide.org.uk
  3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 7.1 million problems from April 2010 to March 2011. For full 2010/2011 service statistics see: www.citizensadvice.org.uk/press_statistics
  4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
  5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.