MP hails Mortgage Strategy as GE cancels repossession

MP SIOBHAIN McDonagh has thanked Mortgage Strategy for helping save two of her constituents from repossession over a high interest loan of 21.9% from GE Money.

But the Labour MP says she still has concerns over the way the loan was sold and its high rate which she described as “astonishing”.

As exclusively revealed in Mortgage Strategy two weeks ago, leader of the House of Commons Jack Straw pledged to report GE Money’s chief executive Brad Cooper to trade and industry secretary AlistairDarling about the loan.

This followed McDonagh’s claim that a couple living in her constituency, Mr and Mrs Webster, had been taken advantage of and faced repossession from igroup, a division of the company.

Although GE Money Home Lending, igroup’s parent, had already pre-arranged to see the Websters, following a meeting on November 3 between McDonagh, the couple and Andrew Punch, chief operating officer of GEMHL, the lender said it will now not repossess the property.

McDonagh says: “We thought the meeting was constructive. GE Money confirmed that it will not repossess the property.

“I feel this is the right decision for the Websters who are vulnerable and naive with their finances, but I remain concerned about the high interest rate of the loan and the circumstances in which they were sold it. I also want to thank Mortgage Strategy for highlighting my concerns as this helped GE Money to listen. Now the Websters must decide if they are happy. If we need to take further action we will.”

A spokesperson for GEMHL says: “We’re pleased that our dialogue with McDonagh has brought about a satisfactory conclusion to a matter we have worked hard for some time to resolve.