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law change to tackle repossessions
June 9, 2009
The Scottish Government will change the law to make it harder for lenders to repossess residential property.
New rules will require lenders to show that they have considered every reasonable alternative to repossession before taking action. And the courts will have to assess whether banks have look at all the options before approving a repossession. The law will also ensure that the protection available through the Mortgage Rights (Scotland) Act 2001 applies in all repossession cases and not just those where the home owner defends the action.
The Government set up The Repossessions Working Group was set up in January 2009 with membership drawn from lawyers, mortgage lenders, debt advisers, and consumer interests. The group was asked to consider whether existing legal protection for homeowners is adequate and, if necessary, to make recommendations on how it might be strengthened.
Cabinet Secretary for Health and Wellbeing Nicola Sturgeon has confirmed that the Government will act on the group's recommendations.