Debt charity criticises Rock repossesions
Sunday, October 19, 2008
A debt charity yesterday called on the Treasury to put pressure on Northern Rock to change its approach to repossessing properties.
Credit Action said that the nationalised bank was twice as likely as other lenders to repossess a home if borrowers fell behind with their mortgage repayments. Chris Tapp, director of the charity, said its eagerness to repay the government meant it was treating struggling customers harshly.
More than 19,000 homes were repossessed in the first half of this year, 4,000 of which were seized by Northern Rock.
The bank's chairman, Ron Sandler, said: "I would deny strenuously that we have been overly aggressive."
Since it was nationalised in February, Northern Rock has cut 1,500 jobs and reduced its lending to help repay the government. In the nine months to September 30 it had repaid £15.4bn of the £26bn it owes. However, the bank's mortgage arrears figures jumped by nearly 60% in the past three months.
Read more at Guardian Online
Labels: northern rock, uk mortgage market, uk repossesions
