Law centre challenges unfair
mortgage arrears charges

Release: Wednesday, 31 October 2007

Glasgow's Govan Law Centre has launched a website to help mortgage customers get unfair mortgage arrears charges refunded. 

The new campaign is being backed by Citizens Advice Scotland.  Most lenders impose a default charge or penalty of between £35 to £55 each month while a customer is in arrears with their mortgage.  Govan Law Centre (GLC) believes these charges may be legally unfair and are truly penalty charges.

GLC's Principal Solicitor, Mike Dailly said:

"We see mortgage arrears charges as a major issue in Glasgow and the UK generally.  Around 1 in 10 borrowers in the UK will have been hit with these penalties and it is not uncommon to see homeowners subjected to repossession proceedings for mortgage arrears only to discover that £500 to £1,000 of 'arrears' consist of mortgage arrears charges".

"Once someone starts getting hit with these charges it is very difficult to get out of mortgage arrears.   We believe these charges are very similar to credit card charges - where the customer fails to make a monthly payment. It is now universally accepted that these charges were unfair with almost all UK credit card companies have now reduced their charges".

"We aim to work with Citizens Advice Scotland and Scottish CABx to demand refunds for hardworking low paid workers and those in arrears due to illness, relationship breakdown or other life crisis".

 

ENDS

The new site is located at:  www.mortgagecharges.info