Lenders try to repossess homes for credit card debt

Published ¤ 25/06/2009

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Borrowers homes are at risk after a huge increase in lenders demanding to secure debt against properties.

Debt charities have attacked high street banks for repossessing homes to recover debts of just a few thousand pounds.
Thousands of borrowers struggling to repay credit cards or personal loans are at risk of losing their homes because lenders are increasingly keen to secure debts against a borrowers property, Citizens Advice warned today. The charity has reported a huge increase in the number of charging orders made against homeowners struggling with unsecured debt.
David Harker of Citizens Advice said: "Some creditors are using the court process as a tactic to intimidate vulnerable debtors into paying unaffordable amounts. The law leaves debtors far too exposed to unfair treatment and the risk of losing their homes."
A charging order secures a debt against a property, and allows creditors to apply for an "order for sale" to recover the debt by forcing a sale of the property. It means borrowers could lose their homes over potentially very small sums of money.
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Times Online
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