Lenders use harsh tactics to collect Mortgage Arrears

Revival Repossession Solutions have found that some lenders especially the subprime lenders or the third party outsourcers that are now managing some subprime lenders clients, are treating people harshly.

There have been many occasions where we have seen lenders demanding an unaffordable monthly arrangement or a large lump sum towards arrears.

Borrowers have been told by staff employed to collect arrears  that the lender is guaranteed to secure eviction and the only way to avoid repossession is to pay off either all or half of their arrears – This is completely wrong and totally unprofessional.

This is without any detailed understanding of the borrower’s income and expenditure or where the extra cash will come from.

There are lots of people that are at their wits end and end up turning to family to borrow money or worst still – they are forced into the hands of a loan shark.

The collection tactics and arrears management procedure at many lenders, especially sub-prime lenders and outsourced collection companies flout mortgage repossession law and show no support for any of the Governments initiatives which are that Repossession should be a last resort.

Luke Memory, Head of External Affairs of Revival Repossession Solutions  comments, “Indeed, our evidence confirms examples of extremely harsh tactics and awkward processes used. We have repeatedly asked for meetings with the most common lenders and they have so far refused. As such we are in the process of compiling a file of evidence for the FSA to review.

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