In Ayr v. BOS plc, the pursuer had contended that on a clear construction of standard condition 12, sch 3, Convenyancing and Feudal Reform (Scotland) Act 1970 and other provisions in that Act, the lender had not been entitled to recoup its legal expenses against its customer because it had failed to serve a pre-litigation 'calling-up notice'. In light of RBS v. Wilson and others, it ought to have done so.
Wednesday, 28 December 2011
Lender refunds repossession expenses charged to customer in part: new GLC legal argument
In Ayr v. BOS plc, the pursuer had contended that on a clear construction of standard condition 12, sch 3, Convenyancing and Feudal Reform (Scotland) Act 1970 and other provisions in that Act, the lender had not been entitled to recoup its legal expenses against its customer because it had failed to serve a pre-litigation 'calling-up notice'. In light of RBS v. Wilson and others, it ought to have done so.
Saturday, 24 December 2011
GLC progresses challenge to mortgage arrears charges under Financial Services and Markets Act 2000
GLC progresses challenge to mortgage arrears charges under Financial Services and Markets Act 2000
Friday, 23 December 2011
GLC recruitment: new Govanhill Public Legal Education Project
The successful candidate with work with both partners in GLC's professional legal practice. Applications in writing with C.V. to Principal Solicitor, Govan Law Centre, Orkney Street Enterprise Centre, 18-20 Orkney Street, Glasgow, G51 2BZ. We will not accept employment agency applications.
The closing date for applications is close of business on Thursday 26 January 2012. Applications thereafter will not be accepted. GLC aims to be an Equal Opportunities employer.
GLC recruitment: new Govanhill Public Legal Education Project
Decision on 'Pre-action Requirements' in Scottish repossession test cases expected February 2012
Decision on 'Pre-action Requirements' in Scottish repossession test cases expected February 2012
Thursday, 8 December 2011
Action needed to tackle 'debt farming' of UK consumers in mortgage arrears: launch of Govan Law Centre report
GLC is calling upon the regulator to consider requiring both 'sub-prime' and 'prime' lenders to undertake a review of their active mortgage accounts with a view to voluntarily reimbursing (by way of a credit to the consumer's mortgage account) all of their customers who have been charged unnecessary, unfair, repetitive or excessive charges. To some extent this process is currently happening for the mass misselling of Payment Protection Insurance by authorised firms and financial intermediaries.
Action needed to tackle 'debt farming' of UK consumers in mortgage arrears: launch of Govan Law Centre report
Friday, 18 November 2011
Time to tackle shark practices of debt companies and their Scottish solicitors says GLC
"Govan Law Centre is considering all legal remedies available to our clients against such companies and their Scottish solicitors - including where appropriate 'naming and shaming' - however, it is quite clear there is a major regulatory role here for the Law Society of Scotland which needs to be addressed, a need for the OFT to intervene, and ultimately a pressing need for the Scottish Government to review the ability of their own Mortgage to Rent scheme to be de-railed by unsecured creditors with relatively tiny debts through the inappropriate use of inhibitions".
Time to tackle shark practices of debt companies and their Scottish solicitors says GLC
Saturday, 12 November 2011
Move to end time bar for abuse victims
Currently actions relating to personal injuries have to be brought within three years, or in the case of children within three years of turning 16, unless certain exceptions apply or the claimant can persuade the court that it would be equitable to disapply the time bar. A Scottish Parliamentary committee will shortly examine a Scottish Government proposal to extend the time bar to five years, but campaigners say this does not go far enough.
Move to end time bar for abuse victims
Tuesday, 27 September 2011
Public consultation on Property Factors (Scotland) Act 'Code of Conduct'
Compulsory registration for all property factors and a tribunal based dispute resolution process for homeowners will be introduced.
Minister for Housing and Transport, Keith Brown said: "Property managers have an important role to play in maintaining and improving housing stock condition and open space. While the majority of property factors provide a good, effective service, the Scottish Parliament voiced concerns about how some property and land management services are delivered".
Public consultation on Property Factors (Scotland) Act 'Code of Conduct'
Monday, 12 September 2011
GLC's Principal Solicitor wins Solicitor of the Year
The prestigious award was determined by an independent panel of Scottish judges, chaired by former Secretary of State for Defence, the Rt Hon Lord Browne. Mike is now the only solicitor to have won the award twice, having previously won in 2007.
The award for Legal Personality of the Year was given to Maggie Scott QC and Legal Academic of the Year went to the late Elaine Tyre. The 2011 Lifetime Achievement Award was given to Lord Rodger of Earlsferry who sadly passed away earlier this year.
GLC's Principal Solicitor wins Solicitor of the Year
Sunday, 11 September 2011
Heather goes to Holyrood
Heather MacKay |
During her internship, Heather will gain experience working in the Scottish political process and will have the opportunity to further understand the system of law-making in Scotland. Heather will be spending time in Holyrood and local parliamentary constituency offices.
Heather said: "This is a fantastic opportunity and I am extremely excited to be able to take part in the internship programme. I am looking forward to putting the skills and experiences I acquire to good use upon my return to Govan Law Centre in December.".
Heather goes to Holyrood
Thursday, 25 August 2011
Recruitment: Temporary position for qualified solicitor at GLC
Recruitment: Temporary position for qualified solicitor at GLC
Wednesday, 24 August 2011
Former Deputy Editor of The Sunday Post appointed by Govan Law Centre
Among Colin's many achievements at DC Thomson was the establishment of the award-winning CHAS (Children’s Hospice Association Scotland) campaign, which Colin ran single-handedly for four years from 2001-2005. During that period The Sunday Post raised a record £4 million which helped build and run Scotland’s second children’s hospice, Robin House, near Loch Lomond. In addition, Colin created the highly-successful Scottish Curry Awards.
GLC's Principal Solicitor, Mike Dailly said: "We are delighted to welcome Colin Grant to Govan Law Centre as our media consultant. Colin is an outstanding journalist with a first class track record and Govan Law Centre's Board of Trustees is confident he will make a major contribution to our work".
Former Deputy Editor of The Sunday Post appointed by Govan Law Centre
Tuesday, 23 August 2011
GLC launches new 'Schools Trust' for Govan kids and invites grant applications from schools
Govan Coat of Arms with motto 'Nihili Sine Labore' (Nothing Without Work) |
Individual grants are unlikely to be awarded in excess of £250. There is no formal application form and no additional prescriptive rules as the GLC Schools Trust believe that local schools will be in the best position to know what would be a good use of grant funding.
GLC launches new 'Schools Trust' for Govan kids and invites grant applications from schools
Tuesday, 2 August 2011
GLC backs Scottish Government's position on RBS plc v. Wilson
GLC's Principal Solicitor, Mike Dailly said: "Calling-up notices are the equivalent of 'default notices' for consumer credit debts and they serve a useful purpose in enabling the debtor to address problems before litigation can be raised. The only difference with a mortgage is the fact it is secured on heritable property and it is therefore entirely consistent to support the requirement for lenders to serve calling-up notices prior to entitlement to raise litigation. It is in the interests of both parties, lender and borrower".
"It is also instructive to note that some lenders and their solicitors did generally serve calling-up notices and did so as a matter of good practice without any difficulty".
"GLC rejects the Council of Mortgage Lenders (CML) assertion that the Wilson decision may not be in the 'best interests' of borrowers. For those with no prospects of retaining ownership or occupancy of their homes a calling-up notice can act as a spur to selling their property with or without their lenders assistance, and for those that need more flexibility to pay their debts the calling-up notice acts as a spur to take advice to set up a repayment solution which the lender would have to explore in any event in terms of the Pre-Action Requirements'.
"What the CML calls 'delay' is in fact a sensible and reasonable opportunity for practical solutions to be brokered and found to enable the mortgage to be paid, arrears cleared and homeowners to retain their homes. GLC is pleased the Scottish Government has acted to safeguard the rights of vulnerable homeowners in Scotland".
GLC backs Scottish Government's position on RBS plc v. Wilson
Friday, 29 July 2011
Solicitor of the Year nominee for GLC
Solicitor of the Year nominee for GLC
Monday, 11 July 2011
Risk of homelessness to private tenants from Scottish housing associations' debt recovery practice
GHA's CEO, Martin Armstrong |
"It can be a frightening experience for our clients to have sheriff officers come to their door to serve such documents on a regular basis, and in our experience the service of schedules of arrestment is causing significant distress and inconvenience to ‘innocent’ private sector tenants".
Risk of homelessness to private tenants from Scottish housing associations' debt recovery practice
Monday, 4 July 2011
Law centre opposes closure of Glasgow's Bilingual Support Unit following 'flawed' consultation process
(2) Financial savings alone seem to be driving force
(3) Flawed consultation process
(4) Failure to meet with needs of children with little or no English
(5) Failure to meet needs of Roma children
With respect to the need to undertake a proper consultation at a meeting on
GhLC Associate Solicitor Lorraine Barrie said: "Glasgow City Council’s public sector duty under the Equality Act 2010 states that an Equality Impact Assessment document should be produced, containing sufficient information to show it has paid ‘due regard’ to equality duties in its decision making. In that regard, we have referred the Council to the recent case of R (W) v. Birmingham City Council [2011] EWHC 1147 where the High Court found that ‘where a decision may affect large numbers of vulnerable people … the due regard necessary is very high’ (at para 151). We believe that is the case here. Further, the court held that ‘consideration of the duty must be an integral part of the formulation of a proposed policy …’.
The Equality and Human Rights Commission’s guide for decision makers states “whether it is proportionate for an authority to conduct an assessment of a financial decision depends on its relevance to the authority’s particular function and its likely impact”. We would argue that as the proposal is likely to have a significantly adverse impact on the learning of all of the pupils who attend the BSU and future pupils, we believe the ‘due regard’ duty is very high, and accordingly GCC are required to carry out an equality impact assessment.
The only mention in the document of the Equality Act 2010 is as follows: “The proposed Service reconfiguration supports the Council’s responsibilities under the Education (Additional Support for Learning) Scotland Act 2004 (Amended 2009) and the Equality Act 2010”. This bald statement in our view, completely fails to demonstrate whether GCC have given “due regard” to their legal duties to equalities; particularly where the due regard duty is ‘very high’
We would hope GCC will produce an Equality Impact Assessment, and make its consultation public, otherwise it may render itself vulnerable to legal challenge under the 2010 Act".
Govanhill Law Centre's full consultation response is here (opens as PDF).
Law centre opposes closure of Glasgow's Bilingual Support Unit following 'flawed' consultation process
Friday, 1 July 2011
GLC challenge proposed care package cull for severely disabled Glaswegians
GLC challenge proposed care package cull for severely disabled Glaswegians
Wednesday, 29 June 2011
Christie Commission Report: GLC says hundreds of millions of pounds could be saved by earlier, co-ordinated, intervention in homeless prevention
GLC’s prevention of homelessness senior coordinator, Alistair Sharp said: “At the moment our innovative earlier prevention of homelessness systems have a 84% success rate, resulting in a potential saving of £48m per annum if rolled out across the City of Glasgow – or potentially several hundreds of millions of pounds per annum if replicated across Scotland”.*
“We are further developing and progressing prevention and partnership through a new innovative process of early intervention with our partners. This will allow us to provide services at a much earlier stage to protect people in their tenancy’s and owner occupancy by providing legal advice and representation, money and benefits service and access to other targeted support from the voluntary sector and social work services teams.”
GLC's Principal Solicitor, Mike Dailly said: "Govan Law Centre would like to see an amendment to the Homelessness etc., (Scotland) Act 2003 to require all local authorities in Scotland to provide a co-ordinated earlier intervention prevention of homelessness system. We have seen the impact and success that such an approach can have in the Southside of Glasgow, and there is no reason that such an approach could not be delivered across Scotland".
The Christie Commission reports that as much as 40% of all spending on public services is spent on social problems which could have been prevented in the first place and by ‘prioritising a preventative approach’ and developing ‘a radical, new collaborative culture’ with the public and voluntary and private sectors working in partnership could cut demand and ‘big bills’ in health, social care and justice.
Govan Law Centre’s Prevention of Homelessness Partnership is made up of Govan Law Centre, Money Matters Money Advice Centre and Glasgow South West Social Work Services and in 2010 won the Scottish Social Services Accolade for Partnership Working in Adult Social Care. The Prevention of Homelessness Partnership project has prevented over 2,000 people and their families from homelessness since it began in 2005. Successful in both creating a collaborative culture through its multi disciplinary/agency partnership approach and by making prevention paramount for homelessness prevention in Glasgow South West.
We have already proven the impact of cost reduction to the public purse as reported in an independent evaluation of the Prevention of Homelessness Partnership project (2009). By preventing over 2,000 people and their families from eviction, repossession and homelessness the cost savings to the public purse can be calculated in terms of: the estimated economic costs of eviction and of a typical homelessness case being £23,074, (it can be as high as £83,000 for the most complex case); the cost of each case to local authorities and the housing provider is £15,000. (SCSH briefing Tenancy Failure and How Much it Costs & Crisis: How Many How Much). This shows that massive cost savings are achievable.
* Our estimate is based on our previous 84% success rate in preventing homelessness in relation to Glasgow City Council section 11 notification data (providing the number of cases taken to court for eviction and repossession in Glasgow – in 2010/11 (12 month period) there were 2,485 section 11 notices in Glasgow alone); utilising an average figure for the cost to the taxpayer for providing a range of housing, social work support and health service costs per household in the sum of £23,074 (COSLA Prevention of Homelessness Guidance, 2009).
Christie Commission Report: GLC says hundreds of millions of pounds could be saved by earlier, co-ordinated, intervention in homeless prevention
Monday, 27 June 2011
GLC welcomes FSA intervention to prevent 'double charging' to Scottish homeowners threatened with repossession
GLC welcomes FSA intervention to prevent 'double charging' to Scottish homeowners threatened with repossession
Monday, 23 May 2011
GLC challenges excessive mortgage charges
GLC's Principal Solicitor, Mike Dailly said: "Although some lenders have already been fined for excessive mortgage arrears charges, the reality is such charges have simply been added to customers' mortgage accounts. Lenders should voluntarily refund excessive charges, but they won't, which is why GLC hopes to establish a quick route to refunds for our clients".
GLC challenges excessive mortgage charges
Friday, 20 May 2011
Bank charges fight still alive: GLC guest comment on MSE
In a guest comment piece on MoneySavingExpert.com, Mike argues that last month's High Court defeat of banks on mis-selling payment protection insurance (PPI) may present the catalyst for change that consumers having been waiting for. That case clarified the precise status of the Financial Service Authority's (FSA) rules.
Consumers may found upon the FSA's new banking rules to argue that overdraft charges are not 'fair' to the individual customer who has to pay them because their price is calculated to cross-subsidise 'free banking' for customers who remain in credit. They can use them to seek financial redress. Read Mike's article here.
Bank charges fight still alive: GLC guest comment on MSE
Tuesday, 10 May 2011
GLC to launch series of financial services test cases
More details to follow in due course.
GLC to launch series of financial services test cases
Monday, 2 May 2011
GLC supports Margo's proposal to cap interest rates in Scotland
The proposal is in response to the growing prevalence of loans and credit at excessive rates of interest - often several hundred to several thousand percent - all at time when the banks' base interest rate is historically very low: currently 0.5%. The UK removed interest rate caps in 1974, however, consumer interest rates caps are common in Europe and many US states. Excessive interests rate are lawful in the UK.
GLC's Principal Solicitor, Mike Dailly said: "Two and half thousands year ago the Romans capped interest rates at 8.3%, rising to 12% some 355 years later. Usury laws have a long history around the world for good reason: it is unjust and immmoral to exploit people and trap them in a cycle of debt due to excessive interest".
"This is a highly complex area of law and practice - not least because unfair lending can occur with hidden charges and extras, as well as APR rates - but I believe GLC has the trackrecord and expertise in this field to support Margo MacDonald, and work with other civic groups in Scotland, to make this fantastic proposal a reality".
GLC supports Margo's proposal to cap interest rates in Scotland
Tuesday, 26 April 2011
Prodigal son returns to Govan after 30 years
GLC's Chairperson, Tommy McMahon, with GCC's Local Heritage Officer Kate Dargie. |
The Aitken Memorial Fountain was created in 1884 and is the only surviving example the decorative, cast iron drinking fountains produced by Cruikshanks & Co.'s foundry at the Denny Works, Stirlingshire.
Hills Trust pupil's impression of the Aitken Memorial Fountain. |
Prodigal son returns to Govan after 30 years
Friday, 22 April 2011
Royal Assent for Property Factors (Scotland) Act 2011
The genesis of the Bill was grassroots. At GLC's fortnightly casework meetings our solicitors would repeatedly flag up the growing number of instances of homeowner exploitation by property factors. GLC's local Board of Trustees were equally troubled with the ability of Glasgow's citizens to be ripped-off with impunity. It was apparent something had to be done to redress the imbalance between the rights of unregulated companies and the rights of Scottish homeowners, many of whom were financially or otherwise vulnerable.
A Bill proposal and consultation paper drafted by GLC was first introduced in the Scottish Parliament by the then Govan MSP Gordon Jackson QC in March 2007, but had insufficient time to progress. The reins were quickly picked up by Maryhill MSP Patricia Ferguson and in October 2007 a fresh proposal and consultation paper was published by the Scottish Parliament. High profile support came from a series of BBC tv and radio investigations and a campaign for law reform sponsored by Glasgow's Evening Times newspaper.
Constant publicity led to the OFT launching a market investigation into Scotland's property factor industry, which had the effect of kicking Patricia Ferguson's Bill proposal into the long grass. Despite the OFT recommending the Scottish Government's favoured solution of 'voluntary accreditation', Patrica Ferguson and GLC ploughed on, gathering support and finally making a winning case for major law reform to protect Scottish homeowners.
GLC's Mike Dailly and draftperson of the Bill said: "We're very proud of the Property Factors (Scotland) Act 2011 because its a victory for common sense, and will help prevent homeowners in Scotland being exploited, while providing a new accessible tribunal remedy with 'legal teeth' if they do get stung. It's also an example and case in point of the importance of local community law centres. Law centres are being threatened in England and Wales, but we need more of them in the UK, not less".
"Without Patricia Ferguson's tireless dedication and hardwork the Bill would not have seen the light of day. We would acknowledge the tremendous support from Patricia's researcher Chris Kelly, the Parliament's excellent Legislation Team, the Local Government Committee and various civil servants at the Scottish Government who all helped to make this progressive piece of legislation possible".
Royal Assent for Property Factors (Scotland) Act 2011
Thursday, 21 April 2011
GLC warns UK consumers 'don't get ripped off when seeking PPI refunds'
The challenge related to rules introduced by the FSA in August last year and whether breaches of FSA 'Principles' (high level general rules) can be a basis of redress for a customer who complains. The banks had unilaterally decided to place all complaints on hold pending their judicial review; the FSA had not issued a waiver to permit them to do this.
Campaigners have estimated that the High Court's decision could lead to three million customers receiving £4.5bn in refunds, consisting of premiums and interest. However, banks said they would continue to put claims on hold until they have decided whether to appeal against the decision, despite a call from the FSA to reconsider complaints immediately.
Govan Law Centre's Principal Solicitor, Mike Dailly, today warned consumers not to be ripped off by dodgy Claims Management Companies who promise to get you thousands of pounds back for an upfront fee of around £500 hundreds pounds or more.
Mike said: "Many people will be eligible for a refund but not everyone. You can check your eligiblity online using Money Saving Expert's free guide, which also has free style letters on how to complain and obtain a refund. The key point is that you do not need to pay a Claims Management Company or anyone else to get a refund. You can do this yourself by writing a letter. There is no need to go to court. So if you've been ripped off with a useless PPI policy don't get ripped off again when it comes to seeking a refund".
PPI covers payments for loans and credit cards if the policyholder falls ill or loses their job, but the policies are riddled with loopholes, such as exempting claims from the self-employed or those with back injuries, the major cause of workplace illness in the UK.
GLC warns UK consumers 'don't get ripped off when seeking PPI refunds'
Thursday, 14 April 2011
Govanhill Law Centre client wins sex discrimination case
Govanhill Law Centre client wins sex discrimination case
Tuesday, 5 April 2011
Places still available on GLC's Employment law seminar on 14 April 2011
Places still available on GLC's Employment law seminar on 14 April 2011
Monday, 4 April 2011
Scotland ill-prepared for ‘summer repossession spike’ - GLC calls for proactive solutions
- The UK Government’s decision last October to significantly reduce the level of Support for Mortgage Interest (SMI) for those out of work;
- The impact of UK Government public spending cuts on jobs, and the wider impact of welfare cuts too;
- The fact that additional forbearance by lenders – since April 2009 at the request of the UK Government – may now be masking the true number of financially difficult cases; and
- The uncertainty over when mortgage interest rates will ultimately begin to rise.
1. Scrap the restrictive Mortgage to Rent rules introduced by the Scottish Government in March 2009, invest more in the Scheme, and extend this excellent Scottish safety net. In June 2009, we contributed to a report which predicted the Scottish Government’s rules would result in a ‘post code lottery’ for vulnerable homeowners facing repossession with many households rejected due to the restrictive eligibility criteria.[3] A FOI response to Govan Law Centre from the Scottish Government confirms we were correct[4].
For the period 31 August 2009 to 31 August 2010 almost half of the people applying to the Scottish Government Home Owner Support Fund (the Mortgage to Rent Scheme and Shared Equity Scheme) were refused help; out of 719 registered applications, 315 did not proceed.
Worryingly, of those Scottish households turned down for help, 37% were refused help because their home was valued more than the Scottish Government new valuation limit (which is a crude figure based upon the lowest quartile value of houses within a local authority area in relation to the number of rooms); while another 37% were refused help because no local authority of housing association was willing to participate in the Scheme. Clearly, the Scheme is unable to cope with the current demand, never mind the expected significant increase in demand which GLC predicts later this year.
2. Introduce a new ‘Post Repossession Tenancy’ in Scots law so that occupiers whose homes had been repossessed could lease them back from their lender until the properties were sold. At present lenders would be highly unlikely to do this, as they would be granting a Short Assured Tenancy of at least six months, with complex liabilities for repairs etc., However, we know that many properties can take several months or considerably longer to be sold and it would benefit lenders, repossessed occupiers and local authority homelessness departments if former owners could enter into a simple ‘no frills’ tenancy until the property was sold. Former owners who were unemployed or on low incomes would be eligible for housing benefit, and such an initiative would utilise otherwise empty properties in Scotland.
3. Enhance the requirement for early intervention to prevent homelessness in Scotland – we recommend an upgrading of section 11 of the Homelessness etc., (Scotland) Act 2003 to require local authorities to use innovative techniques (such as embedded homelessness triggers within their computerised client contact systems) to detect and prevent threatened homelessness much earlier, and to provide a co-ordinated and holistic response in terms of legal, money advice, welfare rights and social care services.
Scotland ill-prepared for ‘summer repossession spike’ - GLC calls for proactive solutions