Cameron calls for greater protection for homeowners at risk of repossession » Housing » 24dash.com

The Conservative Party today called for greater protection for people in debt who are at risk of losing their home or having bailiffs "steal" their possessions.

Speaking on GMTV this morning, Tory leader David Cameron said no-one with less than £25,000 of unsecured loans or bills should be forced to sell their house in order to make repayments.

He added that in the current economic climate the Government should also scrap plans to allow debt collectors to break into property to reclaim goods.

Mr Cameron said: "The Government are trying to change the law to allow bailiffs to break into your home and take your possessions.

"We think that is wrong. They should not be allowed to break into your home and effectively steal your possessions."

The Tories are calling for plans to allow debt collectors greater powers enabling them to enter property by smashing windows and doors, to be scrapped.

Mr Cameron also called for a change to the system of charging orders.

At present, people or businesses owed money can go through the county courts to get a charging order placed on debtor's property.

This in effect gives them a claim on an individual's home and can force the property owner to sell up in order to repay the debt.

Mr Cameron said that people should try to keep up with credit card bills, but acknowledged that "people do get in trouble".

They should be given help to restructure payments, but those struggling "should not lose their homes", he told GMTV.

"We do not want people's homes being taken away, even when they are making payments through the county courts," he said.

Under the Tory plan, anyone with unsecured debts of less than £25,000 should be exempt from having to sell their property.

Mr Cameron told GMTV: "In this recession, lots of people are going to get into terrible trouble.

"There are problems at the moment with people who get their homes repossessed not because they are not keeping up payments on their mortgage, but because they have credit card bills or other unsecured loan bills. That is wrong."

A spokesman for the Ministry of Justice said: "Given the current economic situation and the Government's determination to see repossessions as a last resort, Ministers are reviewing the implementation of the enforcement provisions within the Tribunals, Courts & Enforcement (TCE) Act 2007.

"The act was given an unopposed third reading in Parliament last year but has not been implemented. The Justice Secretary, Jack Straw, asked his Minister, Bridget Prentice, four weeks ago, to ensure that those measures that best protect the vulnerable at this difficult time were prioritised.

"In particular, there are no plans at present to implement any of the enforcement measures on charging orders, and ministers will not agree their implementation until they are satisfied that they will not have an adverse effect during these difficult economic times."

He added: "The TCE Act also contains a package of measures to improve the help available to debtors with relatively low levels of income and debts. They are particularly aimed at the socially excluded who are disproportionately affected by debt and are generally least able to deal with competing creditor demands.

"These measures include the introduction of a comprehensive code governing when and how a bailiff can enter someone's premises and regulation of the private sector bailiff industry."

Jack Straw insisted none of the powers were in force - and would not be if they threatened to have any "adverse effect" during the credit crunch.

"None of the provisions of the legislation to which David Cameron is referring today have been implemented," he said.

"Indeed, four weeks ago I asked one of my ministers, Bridget Prentice, to review the enforcement provisions of the Tribunals, Courts and Enforcement Act.

"In particular I will not agree to the implementation of measures on charging orders until I am satisfied that they will not have an adverse effect during these difficult economic times."

The Opposition gave broad support to the legislation when it want through Parliament and charging orders were first introduced by Tory PM Margaret Thatcher, his spokesman pointed out.

Adam Sampson, chief executive of homelessness charity Shelter, said: "We welcome any measures that help people who are in debt to keep their home and avoid the nightmare of repossession.

"People know that if they fall behind with mortgage payments, they are at risk of losing their home, but many are not aware of the very real risks they could face by having another debt secured against the value of their property.

"We are pleased that the Conservatives have drawn attention to this issue, and hope that they would consider making these legislative changes if they get into power."