CML criticises Scottish government over repossession case

Fri, 29 Jul 2011

The Council of Mortgage Lenders (CML) has criticised the Scottish government's failure to step in and stop changes to repossession regulation following the case of RBS vs Wilson.

As a result of the court action, lenders north of the border must serve borrowers with a calling up notice and wait two months before they begin repossession proceedings.

According to the CML, this is in the best interests of neither the lender nor the distressed borrower as delays can push up costs for both.

Putting proceedings off for a further two months allows interest to pile up and puts the home at risk of property price reductions.

CML policy adviser for Scotland Kennedy Foster explained that it is disappointing that the Scottish government is not willing to address the issue, despite the fact that a recent consultation showed support for changing the rules.

"While the industry waits for the Scottish Law Commission's review of this area in the next couple of years, borrowers and lenders will face adverse consequences through higher costs and extensive delays," he warned.

In other news, the Consumer Credit Counselling Service recently expressed its concerns about the debt burden on Britain's low income households.

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