With regard to the first point it is unacceptable that any lender that might seek an order of sale should not be compelled to use the same wording that applies to mortgage lenders.
This is not a new suggestion. Prior to the credit crunch we asked lenders whether unsecured loans should carry a repossession warning and 80% agreed.
Regarding the MoJ’s recommendation of imposing a credit threshold, my advice would be to prevent the event occurring in the first place.
We recently asked lenders if secondary lenders should be compelled to consider the affordability of all borrowing prior to offering credit. All said yes.
Respondents were then asked if they would welcome tighter regulation of credit card lenders, second charge mortgage firms, retail loan providers and unsecured loans companies. Again, all respondents said yes to credit card lenders, second charge mortgage providers and retail loan firms.
A consistent risk warning for all credit providers highlighting the risk of borrowers losing their homes if they fail to repay could be implemented now.