Building Societies Association
The Home Owner and Debtor Protection (Scotland) Bill successfully completed its passage through the Scottish parliament yesterday. This Bill was originally published last autumn and broadly aims to deliver on the recommendations made by the Repossessions Group (a stakeholder led group representing lenders, legal bodies and consumers) in summer.
In particular it seeks to clarify and strengthen existing protection for homeowners in Scotland. The new legislation provides two important new areas of protection to those homeowners in financial difficulty and facing repossession. Firstly, all repossession orders (excluding voluntary repossessions) must appear before court meaning that a sheriff must decide on the merit of the order in each case. Home owners also have the right to representation at the hearing including lay representation.
Secondly, pre-action requirements will be introduced for lenders ensuring they have considered all alternatives to repossession. These requirements will appear in secondary legislation and are yet to be finalised. The BSA is working with Scottish officials and other stakeholders to develop these further.
