Response - OFT Irresponsible Lending

Given Shelter’s speciality in housing and homelessness, our comments in this consultation response pertain primarily to secured loans (second charge mortgages) secured against residential property.We have noted the rise in repossessions in the current economic climate, including actions taken by second charge lenders. Shelter advice workers have reported some cases where possession orders are being carried out by second charge lenders who have only a relatively small charge in the property, and a worrying lack of forbearance and willingness to negotiate by some lenders We have noted the rise in repossessions in the current economic climate, including actions taken by second charge lenders. Shelter advice workers have reported some cases where possession orders are being carried out by second charge lenders who have only a relatively small charge in the property, and a worrying lack of forbearance and willingness to negotiate by some lenders. We are increasingly concerned about the potential uses of charging orders in the county court by creditors and poor consumer understanding of the implications of these. Greater and protection against irresponsible lending through the licensing regime could help to curb these sorts of problems.