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More time for struggling borrowers

RBS gives struggling homeowners more time

Monday, 1 December 2008

Writes Hazel Cottrell
hazel.cottrell@consumerchoices.co.uk

The Royal Bank of Scotland (RBS) has guaranteed to give homeowners who fall into mortgage arrears six months grace before starting repossession action.

The Royal Bank of Scotland (www.rbs.co.uk), which owns Natwest (www.natwest.com), today pledged not to start repossession proceedings for six months after a customer first falls into arrears. This is double the three months asked for by the government.

It has also said that customers will be able to seek advice from independent money advice organisations before any steps are taken.

Craig Donaldson, managing director of retail banking at RBS, said: “We hope this will reassure our customers that we are committed to providing them with enough time, professional support and the assistance they need to resolve their financial difficulties.

“The repossession route is always a last resort and one that we look to avoid where possible.”

It is expected that other banks, especially those that benefited from a state bail-out, may follow RBS’ lead as the Government calls for greater help from banks for struggling borrowers and businesses.

Chris Eagle, commercial manager at CreditChoices.co.uk, said: “This is reassuring news at a time when many people fear redundancy. If you are already struggling with your mortgage payments, it’s essential that you seek help and advice.

“For free, independent guidance, try The Citizens Advice Bureau (www.citizensadvice.org.uk) The Consumer Credit Counselling Service (www.cccs.co.uk) or The National Debtline (www.nationaldebtline.co.uk).”

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