Responding to the increases in repossession court actions released today (May 9) by Ministry of Justice for the first quarter of 2008, the UK's leading debt charity urged lenders to see repossession as a last resort and encourage homeowners to take advice from Consumer Credit Counselling Service (CCCS).

The chairman of CCCS, Malcolm Hurlston, said:

"Today's figures confirm how hard times are. Everyday living costs such as food and utilities are rising at many times the rate of inflation, so many people are bound to find themselves struggling to meet mortgage commitments. Not everyone can be helped to stay in their homes but many can - recently our Centre for Mortgage Arrears and Repossession Counselling helped clients obtain suspended repossessions orders on the very day of the court hearing.

"Better late than never but clearly the earlier that help is sought the more can be done. Britain's secured lenders need to adopt a culture of encouraging homeowners with problems to take advice from our Mortgage Arrears and Repossessions Centre. In the US it has been proven that third-party advice is more acceptable to homeowners and more successful in reaching answers.

"In the end most lenders would prefer not to embark on the costly and problematic process of repossession and they need to step up their willingness to consider alternatives. We welcome the lead being taken by the British Bankers Association and the Council for Mortgage Lenders.

"At the same time government must step up its readiness to help, through the Financial Services Authority and government departments. Its rhetoric favouring homeownership has misled many and it shares responsibility for putting things right.

"Homeowners must be wary of the multitudes of profit-making organisations seeking to make a fast buck by capitalising on their fears.

"Counsellors at our Mortgage Arrears and Repossessions Centre can help draw up a sensible budget and give practical advice on the best course of action."

CCCS mortgage helpline is open 8am to 8pm Monday to Friday on 0800 975 9558.

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For further information:

Frances Walker

0207 636 5214 / 07771 788 713 (out of hours)

Notes for editors:

1. CCCS is the UK's largest debt advice charity, answering 1,000 calls for help a day.
2. CCCS is self-funding. Lenders share with the charity the benefit they receive from its operation, making a donation from the money repaid to them through debt management plans. This allows CCCS to retain its independence and ensure that its advice is always in the best interest of the client. CCCS aims to separate the "can't pays" from the "won't pays".
3. CCCS provided in-depth advice sessions for over 139,000 people with debt problems last year and helped over 86,000 to repay their debts through debt management plans.