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Citizens Advice response to Government announcement on support for struggling homeowners

20 July 2010

Citizens Advice Head of Consumer Policy Sue Edwards said:

“After the election we called on the government to make a long term commitment to help those borrowers most in need in order to prevent a further wave of repossessions. We are therefore pleased that the housing minister, Grant Shapps, has acknowledged that the risk of repossessions remains high, and has recognised the need to maintain a comprehensive package of support measures that help keep struggling borrowers in their homes.

“Lenders, the voluntary advice sector, local and national government have collectively worked hard to minimise repossessions since the start of the economic downturn, and as a result repossessions have been lower than was initially feared. However, the Citizens Advice service still dealt with over 115,000 problems about mortgage and secured loan arrears in the last financial year (April 2009 – March 2010) – a 21% increase compared to the previous year.

“It is therefore also important that funding for debt advice services for homeowners is maintained, including free legal advice in court for those facing repossession action by their lenders, where it is estimated that immediate repossession is avoided in 85% of cases where people attend court and receive advice on the day.

“We would strongly urge anyone struggling with mortgage payments to get free, independent advice on all their options as quickly as possible (go to New windowwww.adviceguide.org.uk for more information and contact details of your nearest Citizens Advice Bureau).”

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.