lose a home can cause sorrow for families, some people are forced to make their homes at risk because of the debts of as little as £ 600, the Office of Fair Trading (OFT) has found.The regulator is clamping on lenders who say clients at their homes against debts non-hypothèque.
Four providers have been ordered to "concerns" about how certain consumer debts are applied.
In a minority of cases throughout industry, lenders sent paperwork "oppressive and misleading" to borrowers.
TrendThe process of securing these debts is known as a charging order.
Financial companies have the right to ask a court to prioritize pricing when borrowers were unable to track payments on the debt card credit, loans or hire purchase commitments.
This command converts these unsecured debt secured on the property of the borrower's debt.
For the past five years, the number of loading orders requested rose from 45 000 to 164,000.
Only a relatively small proportion of orders lead to people forced to sell their home.
"" Our investigation identified cases require orders are used to secure the debt less £ 600 .the lenders have the right to use the commands of pricing, but must be proportionally, said Ray Watson, Director of the OFT credit to the consumer. "
"When we consider the using demand levels to be unjust or oppressive, we take measures to protect consumers.
"Pressure".The OFT said four branches of the main lenders accountable for how they use orders.
The four are: Alliance and Leicester finance, personal HFC - part of the HSBC Group, American Express Services Europe and financial services - home part of Cattles.
Each of the four has cooperated with the OFT during the investigation and made changes to the problems identified, said of the regulator.
In General, to the whole of the sector inquiry, the OFT has found that some providers omitted to take into account the circumstances of the customer apply considerable costs to bring the debt collection agencies, have no proper controls in place in the decision-making process of the lenders.
