Lenders Criticised For Bullyboy Tactics

The Office of Fair Trading has warned a number of lenders for inappropriately seeking Charging Orders for unsecured debts as low as £600.  The OFT also criticised a the lenders for distributing “oppressive and misleading” information to borrowers.

Charging Orders, a legal process whereby a unsecured debt is secured against a property,has seen applications triple in 5 years, from 45,000 to 164,000.  Ray Winston, OFT’s director of consumer credit comments “Our investigation uncovered instances of charging orders being used to secure debts of less than £600. Lenders are entitled to use charging orders but must do proportionately”

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