OFT challenges lenders’ use of charging orders

Services, part of Cattles plc, over their use charging orders.

A charging order is a court order that places a charge on a debtor’s property, turning unpaid, unsecured debts into secured debts.

Ray Watson, director of consumer credit at the OFT, says: “Lenders are entitled to use charging orders but must do so proportionately. We will take action to protect consumers.”