Jack Straw orders inquiry into repossessions

Jack Straw, the Justice Secretary, has ordered an investigation into a legal loophole that allows lenders to repossess a home without a court order. The inquiry was announced in response to a High Court
ruling that supported a decision by GMAC-RFC, the General Motors mortgage lender, to sell the property of a borrower who was in arrears. It confirmed that mortgage lenders could sell a property without a court repossession order if a borrower fell two months into arrears. Frances Walker, of Consumer Credit Counselling Service, said: ‘This case is shocking and extremely disappointing. The fear is that the practice could become more widespread as the housing crisis worsens.’

Banks increase credit card costs