The Council of Mortgage Lenders and the Building Societies Association have attacked Liberal Democrat plans for compulsory financial advice when repossession claims are issued.
LibDem leader Nick Clegg recently called for compulsory advice on repossession claims to ensure “repossession is a last resort”. He said advice should be independent but did not clarify the source of such advice.
The CML and BSA say lenders and societies already encourage customers to take advice numerous times before a repossession claim is issued but customers rarely engage with them.
CML head of member and external relations Sue Anderson says: “People strugglingto pay their mortgage are free to seek advice and many lend-ers offer independent advice but customers often avoid engagement. I support the concept but I am not sure if it would add much in practice.”
BSA PR and policy manager Neil Johnson says: “Individuals are already contacted as soon as there is a problem to look at ways of dealing with the situation. This proposal may even delay people contacting their lender.”