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Citizens Advice response to CML repossession figures

12 August 2010

Citizens Advice Chief Executive Gillian Guy said:

“While it is good news that numbers are down, is still worrying that 9,400 households have been repossessed and others are still struggling to meet their payments. The Citizens Advice service saw 25,360 mortgage arrears problems in the quarter from April to June 2010 and it is widely expected that this is the calm before the storm with the impact of public sector cuts still yet to come.

“Therefore it is crucial that further measures are put in place now in preparation. Both lender forbearance and the current package of policy measures have made a real impact to ensure people aren't losing their homes unnecessarily so we are urging lenders to continue to treat people in arrears fairly and we are calling on the government to maintain the mortgage rescue scheme and existing help towards mortgage interest payments for those who have lost their jobs.

“It is also vital that debt advice for homeowners continues to be a funding priority, 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.

“It would also be a timely opportunity to introduce a statutory debt management plan to ensure that people in arrears are able to pay their debts according to priority, not who is shouting the loudest which can make the difference between keeping or losing a home.

“Anyone struggling with mortgage payments should get free, independent advice as early as possible (go to New windowwww.adviceguide.org.uk for more information and contact details of your nearest Citizens Advice Bureau). Even if you are facing court action it’s not too late – you should be able to see an adviser on the day of the hearing who in most cases can help you stay in your home.”

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.