Lenders Slam Repossessions Blacklist

Citizens Advice Bureau (CAB)

Lenders have attacked the methodology of a Citizens Advice Bureau (CAB) report that seeks to name and shame lenders with the most repossession court hearings in relation to their market share.  It reports that GE Money Home Lending, Halifax, Kensington Mortgages, Southern Pacific Mortgage Limited and Abbey as being the lenders undertaking the most repossessions actions in January 2007.  

But the report then goes on to say that when they are “normalised” according to market share, these results change.  It states that sub-prime lenders are taking repossession actions that are disproportionate to their market share.  It comes as no surprise that sub-prime lenders figure prominently in the Citizens Advice Bureau (CAB) report, as they generate loans for individuals with problematic or non-existing credit histories, according to Lehmans.  

Our view

Utter twaddle.  If you take on ‘higher risk’ lending business and charge more for it in fees then you have to take the ‘blacklist’ repossessions flack when they are published and not ask for benchmarking figures.  

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