Arrears, repossessions and lenders’ duties

The Mortgages: Conduct of Business rules (MCOB) in the FSA Handbook impose duties on both mortgage lenders and mortgage administrators with regard to fair treatment of customers who may find themselves in arrears or ultimately facing repossession. Philip Ryley, solicitor and John Virgo, barrister provide an overview of Chapter 13 of MCOB and consider the outsourcing of arrears handling and repossession work to solicitors.

MCOB Chapter 13 – ‘Arrears and Repossessions’ -applies principally to mortgage lenders and mortgage administrators that administer regulated mortgage contracts or mortgage shortfall debts. This article will focus on the Chapter 13 obligations in respect of regulated mortgage contracts that will apply to lenders come 31 October 2004.