GLC to participate in free Scottish mortgage repossession conferences

GLC's Principal Solicitor will be speaking at a free conference focussing on recent legislative and case law changes in Scottish mortgage repossession law, in Glasgow on 3 December 2012.

The event is being hosted and sponsored by the Carrington Dean Group. Mike will provide a review of recent Scottish case law, with a focus on statutory pre-action requirements and the issue of legal costs and charges in repossession cases. Other confirmed speakers include, Citizen Advice Scotland, Irwin Mitchell Solicitors and Tom McEntegart, managing director of TLT Solicitors. The conference will include an afternoon panel debate session chaired by advocate and Scottish Legal Action Group chairman, Robert Sutherland.

The conference will be held in the Laprohaig Theatre, Teacher’s Building, Glasgow on the December 3, 2012. A shorter seminar will be held in the Ramada Encore Hotel in Inverness on December 6. Anyone interested should contact alanmcintosh@carringtondean.com in the first instance. Both events are free to advisers and solicitors working in the industry.

GLC to participate in free Scottish mortgage repossession conferences

Lenders new PAR arguments rejected in NRAM, Santander & Nationwide v. Doyle and 4 others

New legal arguments by Aberdein Considine & Co., solicitors on behalf of three UK lenders have been rejected in a Scottish judgement from Sheriff Deutsch at Glasgow Sheriff Court. The judgment pertains to five separate mortgage repossession actions which were heard together earlier this year, with GLC's Principal Solicitor acting for all five defenders.

The 'Doyle judgment' provides helpful discussion on what lenders need to do to satisfy the 2010 Pre-Action Requirements (PAR) Order, with examples of three cases which failed to meet the 'minimum standard' required under the 2010 Order, and two cases which met the statutory test.

The Pursuers' solicitors unsuccessful challenged the ratio in Northern Rock (Asset Management) Plc v. Millar 2012 SLT (Sh Ct) 58, but had also set forward a number of new legal arguments which had not been considered in Millar. A number of new propositions were advanced, including: that the Interpretation Act 1978 did not apply; 'default' was truly under standard condition 9(1)(b); there should be a flexible time for PAR compliance; and that there was no mandatory requirement to comply with regulation 2 of the 2010 Order. All of these arguments were rejected by the court.

The Pursuers' solicitors were able to show that there had been actual compliance with the PAR in two out of the five cases, and accordingly these were continued to determine further procedure, while three actions were dismissed as incompetent. The full judgment is available here (online PDF).

Lenders new PAR arguments rejected in NRAM, Santander & Nationwide v. Doyle and 4 others

Aberdein Considine refuse to give copies of pre-action mortgage documents in Scottish repossession cases

Govan Law Centre (GLC) is concerned to note a change in practice by one of the panel firms of solicitors who represent lenders in Scottish mortgage repossession actions. Aberdein Considine and Co., Solicitors have advised us that they will no longer provide copies of formal mortgage correspondence sent to customers before court proceedings were raised. This change in practice will adversely affect many of our clients in future.

We are required to check such correspondence in order to properly advise our clients of their legal rights.  Not all customers retain all such documentation, particularly where they are under financial pressure or have health or other problems. All other lender’s firms in Scotland currently provide defenders' advisors with copies of pre-litigation correspondence when requested, which is often available in electronic form and can be readily provided by e-mail.

GLC is concerned to note that Aberdein Considine and Co., Solicitors will no longer provide us with copies of formal pre-litigation letters send by their clients. The Financial Services Authority's MCOB rules requires authorised firms to deal fairly with any customer who is arrears of his or her mortgage (R13.3.1).  This extends to agents acting on behalf of firms. Firms are also expected to liaise with a customer’s advisor regarding payment or sale shortfalls.  

GLC does not believe that the policy approach of Aberdein Considine and Co., is in the interests of lenders' customers and appears to be at odds with the FSA’s Principles of Business (Principle 6).Accordingly, GLC intends to formally take these policy issues up with lenders in the first instance. 

Aberdein Considine refuse to give copies of pre-action mortgage documents in Scottish repossession cases

Are UK payday lenders breaching EU irresponsible lending rules?

Are UK payday lenders breaching EU rules on irresponsible lending and if so what does this mean for consumers?  Govan Law Centre publishes a brief thought paper by Mike Dailly examining the 2010 Consumer Credit (EU Directive) Regulations introduction of section 55A and 55B to the Consumer Credit Act 1974. 

GLC and our partners have seen increasing examples of how the need for small, short term loans are being ruthlessly exploited by payday lenders to the detriment of our clients and communities. Households have become entrapped in impossible cycles of indebtedness with monthly default, roll over and eye watering usury interest rate charges.

Often the result of such expensive indebtedness is enforced poverty, personal hardship and threatened homelessness as clients cannot pay their rent or mortgage or buy household groceries as payday lenders hoover money and charges from their bank accounts each month. GLC believes this is unfair, unethical, and against the public interest.

GLC is in the process of actively challenging the right of payday lenders to recover their fees and charges on behalf of our clients and will share any developments in due course.  

Are UK payday lenders breaching EU irresponsible lending rules?

GLC supports Scottish Youth Parliament's One Fair Wage campaign

GLC's Mike Dailly signing the
One Fair Pledge with
John Gillies, MSYP.

The 'One Fair Wage' campaign has been set up by the Scottish Youth Parliament (SYP) to encourage individuals and organisations to pledge their support for a Scottish Living Wage.  SYP believes everyone in Scotland deserves to earn at least enough to live on.

The SYP believe it's obscene for people to be working whilst still trapped in poverty and that all workers - regardless of how old they are - should earn a Scottish Living wage. Govan Law Centre agrees, and applaudes the SYP for launching such a fantastic campaign.

A Scottish Living Wage can make a real difference to half a million low-paid Scots. Over the next year the Scottish Youth Parliament will call on politicians, businesses, councils and charities to pledge their support for a Scottish Living Wage.  GLC hopes you will pledge your support too. It's time for One Fair Wage.

GLC supports Scottish Youth Parliament's One Fair Wage campaign