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Southern Pacific warns lenders not to repeat mistakes of last recession

Sub-prime lender Southern Pacific has called on lenders to re-examine their arrears and possessions policies in order to avoid a repeat of the damaging spate of repossessions that occurred in the last recession.


SPML director John Prust says: &#34CML figures show increases in both possessions up 9.6 per cent on 1997 and arrears of 3 to 6 months up 7.5 per cent. The industry needs to adopt a new philosophy for possessions if it wants to avoid the damaging situation which arose in the last recession.&#34


The comments coincide with the publication of a Shelter report which showed that the self employed and those on short-term contracts are three times as likely to be repossessed if they fall into arrears than those on permanent contracts.

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