Lenders will no longer be allowed to send out thuggish debt recovery letters under new rules proposed by the Treasury following a campaign by TV money pundit Martin Lewis.
The Treasury said the use of legalistic language and block capitals in default notices will be restricted and that the letters will have to be easier to understand and less intimidating. Borrowers will also have to be told about where they can obtain free debt advice.
Currently lenders have to comply with a 1970s law that dictates the text of official default notices issued by the banks. Concerns about the format of the letters intensified after the introduction of mortgage holidays during the pandemic, when banks were forced to send the letters because the payment break…
Read the full article at: https://www.theguardian.com/world/2020/oct/07/lenders-told-not-to-send-out-thuggish-debt-letters-under-new-rules
