Northern Rock refutes allegations of aggressive repossessions

Posted under General by Alan

Nationalised bank Northern Rock has denied allegations that it is more aggressive in the repossession of properties than other banks and societies. The housing charity Shelter claimed that Northern Rock had repossessed 50% more properties than others.

Contrary to Northern Rock’s denial, the data reveals that in 3 months ending September, it had repossessed 4,201 properties, which is much higher than most other banks and mortgage companies. It is almost 20% more than Northern Rocks’ previous quarter’s repossessions.

Northern Rock has issued a statement denying that it was adopting overly aggressive approach to repossession and claimed it had been taking mortgage customers to court only as the last alternative to recover money.

It added that in certain cases if a reasonable agreement could not be hammered out with the borrower and if arrears were getting accumulated, the bank considered this as damaging to interests of both the parties and resorted to the last option of repossession.

Shelter feels that borrowers should be rendered all the assistance and free independent advice so that they do not lose their homes. The option of repossession should only be exercised if absolutely necessary and unavoidable.

The Government offered a £300 million package last month to help owners facing repossessions. It also acknowledged that homeowners were finding it difficult to make payments and it was finding ways to help them through benefits system.

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