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Debtors 'could face repossession'

Debtors 'could face repossession'

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People who have taken out loans could find that they are at risk of repossessions as service providers adopt new measures, it has been claimed.

Thomas Charles, a debt consultancy, said that credit card companies are increasingly beginning to "take charges over property" when consumers cannot repay arrears.

Such firms may apply to a court to get existing debts secured against homes as they attempt to reclaim money, stated managing director at the outfit James Falla.

He commented: "So that, potentially, is a longer-term consequence of the situation we've got and one that is perhaps a bit more serious than it has been in the past."

This is a trend that it starting to become a lot more common, the outfit added, as more stringent means are attempted.

In 2007, five per cent of consumers who took out credit cards admitted to lying about how much money they earn, according to uSwitch.com.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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