Abacus Daily Debt News

Repossession scheme helped 33,000

A repossession initiative that was launched by the government helped some 33,000 people avoid eviction over the Christmas period, it has emerged.

Justice minister Bridget Prentice observed that the loss of a home is "one of the most traumatic events" that can occur, adding that the government has been striving to ensure that debtors are given all the assistance available before this becomes unavoidable.

This, she continued, includes "financial assistance and debt advice".

It was also announced that the Ministry of Justice has brought out a new scheme that will give homeowners the opportunity to seek court protection when they are faced with repossession.

This is intended to close a loophole that could see lenders sell properties without owner consent or court approval.

In related news, recent figures from the Financial Services Authority revealed that in the third quarter of 2009, fewer houses were repossessed, totalling 14,000 for this period - a drop of five per cent below the peak seen months before.

By Sarah Adie