Monday 29th of June 2009
Borrowers need greater protection from lenders that seek to intimidate them into repaying debts, it has been argued.
Citizens Advice noted that charging orders, which turn unsecured debts into secured debts, are increasingly being threatened.
A report from the charity indicated that consumers are being forced to repay more than they can afford as a result.
However, an individual voluntary arrangement (IVA) could help those who are struggling to establish repayment of unsecured loans at a more affordable level.
Commenting on intimidating practices, Citizens Advice chief executive David Harker called for the rules to be changed, stating: "The law as it stands leaves debtors far too exposed to unfair treatment and the risk of losing their homes from unsecured creditors."
Chris Tapp, director of Credit Action, recently suggested that many borrowers who are in difficulty are not aware of the various solutions such as IVA help that are available to them.
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVA questions may help debt-ridden borrowers
