View more on these topics

Field visits vital part of PAP says The Charlbury Group

Arrears management experts The Charlbury Group, claim that field visits are a vital element of lenders’ adherence to the pre-action protocol introduced by the government last year.

The pre-action protocol, drafted by the Civil Justice Council’s Housing and Land committee took effect from 19 November 2008.

It states that lenders need to act fairly and reasonably with each other in resolving any matter concerning mortgage or home purchase plan arrears; and encourage more pre-action contact between the lender and the borrower in an effort to seek agreement between the parties.

Richard Hurst, director at The Charlbury Group director says: “The challenge for lenders without a branch network is that where a borrower does not answer phone calls or respond to letters there is little option but to proceed down the repossession route.

“We’re finding that lenders are struggling to find enough people ‘on the ground’ to make contact with borrowers to open a meaningful dialogue or, at the very least, to try and open up a line of communication so that all options can be explored.

“We believe that by adding a personal visit to a lender’s pre-action protocol will improve the number of occasions where possession can be avoided and in cases where this is unavoidable they can demonstrate that this additional, proactive step has been taken. This supports the pre-action protocol and also adheres to the principle of Treating Customers Fairly.”

Recommended

Rejected mortgages up almost 400% since 2007

The number of mortgage applications rejected by lenders has increased almost fourfold over the last two years, figures from moneysupermarket.com reveal.

West Bromwich denies Coventry merger talks

West Bromwich has denied that it is in merger talks with rival mutual Coventry and says the future of the society’s national brokerage Mortgageforce is assured.

Overseas deals could pay off for brokers

Mortgage Brain has launched an overseas mortgage service in partnership with Conti, which will pay brokers 25% commission for each completed case.

Default image

Health Shield announces strong results

Health Shield, a corporate health cash plan provider, has announced that it has increased gross annual premium income to more than £25m in another year of strong organic growth.

Newsletter

News and expert analysis straight to your inbox

Sign up