"FLA members are committed to dealing with customers in financial difficulty sympathetically and positively. Charging Orders allow lenders to take a more flexible and long-term approach to helping customers repay their debts, which is exactly what is needed in the current economy. Legal action is only taken when repayment arrangements have failed and it remains extremely rare for a Charging Order to lead to anyone losing their home.
"The CAB's proposals for restricting Charging Orders could result in higher credit charges for all customers, irrespective of whether they are in default. They would also put some creditors at an unfair advantage, with council tax and utility debts taking priority over others. At a time when lenders are doing all they can to help customers with debt problems, these reforms could restrict the assistance they can provide."
