Malkavian

So apparently nationalized banks are even more vicious than private ones...

Charities and opposition MPs have urged ministers to act after it emerged that Northern Rock is repossessing 50% more properties than the industry average.

Shelter said ministers had a "moral duty" to help people stay in their homes while the Lib Dems said the figures were "difficult to swallow".

Gordon Brown pledged more help but said ministers did not run the business.

By the end of September, the state-owned lender had 4,201 seized homes, up from 2,215 at the end of last year.

Northern Rock rejected suggestions that its approach to repossessions was "overly aggressive", saying the measure was only ever used as a "last resort".

'Perverse'

But charities have expressed anger that after being bailed out by the government last year, Northern Rock's repossession rate in the first half of 2008 was double that of the industry as a whole.

Shelter said repossessions should only occur if "absolute necessary" and that people should be given every assistance, including free independent advice, to help them stay in their homes.

"It seems a bit perverse that ministers who a few months ago were lecturing lenders about their responsibility towards homeowners in arrears are now allowing companies that are state owned to repossess people's homes so aggressively," said its chief executive Adam Sampson.

"We realise the government cannot avoid all repossessions but it must ensure a dignified and planned exit from mortgages that are held by the newly nationalised banks and hopefully try to allow people to stay in their homes wherever possible."

In July, Northern Rock said the number of borrowers three months or more in arrears on their mortgage payments had doubled in the first half of the year as economic conditions worsened.

Experts said Northern Rock's repossession rate was likely to be higher than average as it offered more 100% and higher loans than most lenders and since many of its less vulnerable customers remortgaged elsewhere after the firm was nationalised.

Government support

The government announced a £300m package of measures in September to help people stave off the threat of repossessions.

Help is being offered for people on benefits to pay interest on their mortgages while people will be able to sell all or a share in their property to a housing association or other social landlord, enabling them to remain in their property.

Mr Brown acknowledged that more homeowners were finding it hard to meet their payments and said the government was looking at further ways to help borrowers through the benefits system.

But he deflected criticism of Northern Rock itself, saying it was "important to note that it is at arm's length from government".

"It is not a company we are running on an everyday basis," he added.

The Lib Dems said lenders should be under a legal obligation not to issue repossession orders until they had explored every means of helping people, including renegotiating their loans.

"People get their household finances in a mess and they can be straightened out through quite simple measures like deferring a payment here or cutting some costs there," said leader Nick Clegg.

"That is probably the best way to make sure we do not simply move to this default position of mass repossessions up and down the country."

Source

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Farra

Malkavian

... But at least, it's not as bad as the Spanish. Though a female dressed up as a naughty nurse (sorry, it's Halloween time ), could collect my debts any time, plus any interest of her choosing.

Could you collect more in a panther outfit?

October 16, 2008 by Shane Borer
Posted in: "Seemed like a good idea at the time", Contract disputes, Special report

Every company deals with a slow-paying customer now and then. Now there are some costumed alternatives that’ll get funds rolling in. Spain’s economy has seen better days. But for debt collectors in the country, business has never been better. El Cobrador del Frac — “The Debt Collector in Top Hat and Tails” — has had to hire 150 new collectors in the past 6 months just to keep up with demand.

The company’s secret: Use costumes and attention to embarass companies and individuals into paying their bills. El Frac, as it’s known, owns a fleet of vehicles emblazoned with the company’s logo on the side. Once arriving at their destination, employees dressed to the nines catch the attention of neighbors and surrounding businesses before doing their work.

So far, the tactic’s been profitable for the company — it has a success rate of more than 60%.

The collection company says it provides a vital service, especially for small- to mid-sized businesses that might not have the resources to collect everything they’re owed.

Of course, the company’s tactics are hard to ignore for many debtors. They’ve been so successful that several other companies in the field are taking similar approaches, outfitting their employees as bullfighters, Zorro or the Pink Panther.

Two other sources of main competition:

1. The Scottish Collector, which sends a bagpipe player in full highland dress to debtors’ businesses or homes, and
2. The Monastery of Collection, whose workers arrive dressed as Franciscan friars and chant until the owed amounts are paid.

But El Frac is still on top of the debt-collection game. When one Madrid couple refused to pay the bill for a wedding reception, the company obtained the guest list. It then called those on the list and said the people would be individually charged for their food and cake because the family wouldn’t pay up. The couple paid the sum within hours.

What do you think? Do these companies have a right to collect payment any way they can? Are their tactics bordering on the verge of harassment, or is all blame on the debtors? Let us know what you think in the comments section below.

Source.

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Farra