Try offshore accounts where the wealthy put their money Tax Haven, It has not dissapeared off the face of the earth. Any mp's been reposessed lately or had charges on their property for getting into arrears . The banks have robbed us for years now tax payer has to bail them out. We get no help

Ms carr, worc's, england

The security has nothing to do with the loan itself. Its a court mechanism open to all judgement creditors. There has been no mis-selling at all. Why do so many people think they can spend the banks money and then not pay it back. Stop absolving yourselves and take some responsibility.

Stephane, Manchester,

If loans are sold as unsecured, but in fact are ultimately secured against your property, well that's a case of lenders mis-selling you the loan.

Mark, Liverpool,

Repossession of real property for unrelated debts, was one of the economic reasons for the revolution of the North American Colonies in the 1770s. I thank G-d I live in the US, where the credit card issuers are forbidden from seizing homes and lands for credit card debts.
God Save the Queen.

David Walker, Stephenville, United States

If all unsecured credit advances where just that, UNSECURED, with no opportunity in law of being retrospectively attached to any assets whatsoever, ‘enlightened self interest’ would engender in all lenders the complete discipline of not advancing monies beyond the borrower’s ability to repay.

Nigel Fenwick, BATH, UK

How is this a "loophole"?

Orders for Sale are expressly provided for in the Civil Procedure Rules!

James, Manchester,

Both lenders and borrowers both have some responsibility....But Banks are without doubt failing to face up to their own mistakes, are being bailed out and bonuses continue.

The moral story is - money has no morals. Failed Banks and failed governments simply making someone - anyone - else pay.

Paul, London,

What about the people who could pay but have been made redundant and have (for whatever reason) been unable to find another similarly paid job? The job market is not as elastic as many people imagine - and they are the ones who need a fairer deal.

Julian, Hampton, England

No matter the size of credit card debt, it is still an Unsecured Loan and as such there should not reasonably be a charge on a persons home.
The banks and credit card companies are at fault by offering credit to the 'risk' market.
Banks must become more professional in the way they conduct busines

Joe, Caen, France

The Times thinks it is ok for a person to take out a loan and not pay it back? So if a company does not pay another company - would the baliffs not be sent in? No sympathy. You take a loan, pay it back or expect to be taken to court.

Bob, London,

Again we see that behind the glossy and consumer friendly advertising campaigns used by the banks, there is a very real and very hungry monster lurking, and it's more than willing to bite off the hands that feed it, yours. Banks want your money, and they'll get it one way or another. Viva le profit!

Tone, london, uk

This is the second time I've seen charging orders described as 'obscure' and a 'loophole'. They are not obscure, and express provision by statute is hardly a loophole! If a judgment debtor offers to pay a judgment by reasonable instalments the court will usually allow this rather than enforcement.

Hannah, West Midlands,

Doens't the bank that holds the mortgage on the house have first claim on the proceeds? I woud think in the current situation there wouldn't be much left for anyone else.

Jonathan, NYC, USA

"...because homes repossessed in this way did not appear in the official statistics issued by the Council for Mortgage Lenders."

Are there any official statistics which we can believe? They seem to be about as toxic as the CMOs.

jeannie, Perugia,

The banks have no power to "order" the sale of homes with charging orders on them. They have to apply for another court order first. Judges won't make sale orders for small amounts of money. The most the banks will get out of this ploy is payment when the owners sell the property eventually.

Kevin Beach, Crawley, England

What is happening to this country? Are we, the taxpayer not bailing out these banks....just for them to be able to change the current legislation to come down harder on the very people who are keeping them in business? Have i over simplified the situation?

Worthy, Chorleywood, UK

What a horrible world this has turned in to. I want no part of it anymore.

collin brown, cotgrave, nottingham

Why am I not surprised?

mark walker, Bristol, UK

And we are forced to bail out these EVIL institutions, what real need does the average man in the street have for these PARASITIC COMPANIES.

Simply SAVE if you desire something ,and RENT a home.

IN SHORT NEVER, EVER TAKE ON DEBT/CREDIT.

WITHOUT CREDIT/DEBT BANKS ARE POWERLESS/IMPOTENT.

Andrew, Haworth, England

I’m watching a film at the moment about a man who rescues a girl he found covered in blood and dumped in an alley. He nurses her back to health but it turns out that the girl is a vampire and once back on her feet she goes on a killing spree. He even brings her fresh victims. During the adverts I read the report above about the activities of Northern Rock. Someone needs to go round there with a stake and a mallet.

Ray, Chorley, Lancashire

well done new labour youve slipped another unknown law in again.but will the credit card companies now have to have a finacial health warning in big bold letters before people sign for a card? i doubt it

mike, peterborough, uk

OFT says "Those contacting debtors must not be deceitful by misrepresenting their authority and/or the correct legal position" & specifies "pursuing third parties for payment when they are not liable".

Sell our house for my wife's debts. Sounds like pursuing me for her payment when I am not liable

George Brink, Hinckley, Leics, UK

fat greedy pigs!! and still you wonder why everything else is spiralling out of control!

S.T, Cambridge,

This is morally evil, offering unsecured credit then once someone cannot pay taking their home, often leaving the state to pick up the cost of another possible broken family.

Would they not be better off lending from a loan shark?

Adrain Impey, Hartlepool, England

In Portugal I've heard the state bank, which also issues Mortgages, instead of simply foreclosing on people is said to be buying back their homes and then renting them back to the buyer. There is also the possibility that they rentee can in the future buy back his house at a preferential rate.

Rob, Lisbon , Portugal

As an ex-debt adviser, I agree it's appalling creditors will have increased power to use Charging Orders. But the house isn't seized until subsequent Order for Sale is made - rare for courts to allow such applications. Good point re vanishing difference between secured and higher % unsecured loans.

Russell Cavanagh, Sheffield,

The main criteria why the Government baiked out the Banking System with Tax payers money.
Because if a scenario arose whereby the Banks went into liquidation ,thus losing savers money,there would have occurred total anarchy amongst law abiding.citizens.
Westernised democracy fears that happening

Garry, Richmond, United Kingdom

This is (yet another) financial outrage. The reason banks get away with charging the usurious rates they do on credit card debt is because it is precisely how it is described - "unsecured debt" . Banks are taking a risk on default because it is "unsecured" and so charge higher rates.

Tony, Morgan Hill, California, USA

for all those who say dont borrow, u have to borrow for you house and larger items and pay it off... most people did before the crash and at the time had csh left over, now their house is worthless and risk job losses, hindsight is no reason for banks to say its a bad debt. income down, intrest up!!

Rob, London,

no one can budget if your morgage goes from 500 to 900 a month.... its not the same situation were in when we borrowed, bank got it wrong but their saved, we get it wrong and we still loose after we help the banks out. downsize fine but what if ur already at the lower end as most of these people are

Rob, London,

Charging Orders are not obscure or a loop hole. A bank cannot 'order' the sale of property under a charging order. The court has discretions whether or not to grant the order and, later, a sale.

Toby Jones, Johannesburg, South Africa

There was a case where a man was awarded compensation by default after the bank's defence team failed to appear at the court hearing. The bank refused to pay. So he sent in the bailiffs, who proceeded to seize computer equipment as security. Perhaps someone will use a charging order against a bank?

Michael, Edinburgh,

I thought in the English Language that UNSECURED meants exactly that. So how come this sort of thing is happening, this means that no-one but no-one should borrow money or have a credit card. If this should happen guess who will suffer YEP the BANKS AS PROFITS DIVE. Who picks up the bill Tax Payer

chris, Bonnes , France

"Don't borrow the money if you can't pay it back. Simple really."

The banking system is based on borrowing and lending, and mortgages are loans too. Have you considered that people might have borrowed assuming that they have a job and a regular salary, only to find that it's no longer true?

DJ, Loughborough, UK

Is this how the bailed out banks say 'thank you' to the taxpayer ?

Jimmy, Camberley, UK

I'm confused by the part that says that creditors will be able to sucure a charging order without obtaining a judgment first. As I understood the change in law will allow creditors to obtain a charging order on instalment orders made by the judge without any default, but not to avoid court initialy

Mark, Worthing,

Some comments here sicken me to the stomach!! YES! we have had irresponsible lending (which the taxpayer will fit the bill for), and god help us all it it ever happens again! But GE WIZZ!! take some responsibility of your own actions! NO ONE forced you to have the loans!!!!

l, gwent, uk

Banks and financial institutions run this country and have done so for decades. What passes for democracy and freedom is no more than a charade to hypnotise the great mass of the unthinking and brainwashed population. Wake up Britain and take back your country from usury and corruption.

Joe Blanco, London, UK

I am bemused by some comments.

What happened to responsible borrowing?

I, and many others like me, practice "safe financial management". Why should we subsidise those who do not

Prices of goods in shops include an element to cover shoplifting - bank costs are levied to cover defaulters.

R Bingham, Lauzun, France

I agree if this applies to the greedy homeowners, who wanted to exploit the housig market back then and wanted to make a quick buck. In the process they have overstreched themselves. So that's called punishment for them now. Serves them right.

James Cole, London, UK

This is an old story - but hang on no one forced anyone to borrow people have to responsible for their own actions.

Gary, Swindon,

If a loan is an unsecured loan, then it should be just that, unsecured. There is a ridiculous amount of small print when signing up for a loan and this is all the more sinister if there is the possibility of losing your home concealed within.

Stephen, Belfast, N Ireland

Rather than penalise the taxpayer twice - bank bail out and home repossession - the banks and credit card companies should be themselves taking the brunt.

If government had any teeth at all instead of bumping their gums they should legislate to stop this now. At a stroke the culprits pay.

Charles Dowie, Epworth, UK

The whole crisis that has rebounded on borrowers and left them struggling to meet repayments was caused by the same banks massive negligence. The banks should be constrained by legislation to help people remain in their homes until the upturn happens. Eviction puts the expense back on the taxpayer

Richard, Kingston, UK

I know of someone who lost his home for non payment of Council Tax.
People have to take responsibility and stop trying to keep up with the Jones's for all you know that top of the range kitchen could be on the never never?

Stephen Holmes, Withington, UK

Absolutely disgusting. Banks magic their money up based on having a minimal reserve and credit cards are an extention of this fraud, yet they legally have the power to take someone's home. Our monetary system is a circle of debt in which most people must live in order to survive

Jon, Bournemouth,

If northern rock is nationalized, can we apply for judicial review as it already becomes part of the government?

Ted Wong, hong kong, hong kong

The banks got us into this mess and we are all suffering. Even now they won't accept responsiblity and are still looking to their own interests to the detriment of the customers who lined their pockets. They are completely despicable.

Anna , kendal, uk

Proof yet again that this country has archane laws. What happened to repsonsible lending? This is unsecured debt and recovery should be against appropriate. The banks seem to want the cake and eat it. Perhaps we should have a Credit Act like South Africa to protect the consumer?

Alex, London, UK

The credit card interest rates are high to compensate banks for the extra risk in making unsecured loans. Now, we hear that banks are trying to convert these into effectively secured loans? The obvious conclusion is that these people are crooks.

Martin Baldwin-Edwards, Athens, Greece

Let's not forget how much money banks spent on marketing and trying to convince everyone that it's ok to become indebted. Gullible consumers could not resist and, combined with the urge to consume, took their first steps towards financial doom - which the banks were fully aware of.

Tam, London,

Don't borrow the money if you can't pay it back. Simple really.

Mr Baker, pontllanfriath, wales

This was the plan all along, money is worthless digits on a compuiter screen, whereas, property has real value. The bankers want all of your property, not their worthless fiat currency that they created out of thin air.

Arhur Guy, Gloucester, England

This is simple. People guaranteed the loans, it means the banks have the right to get the money back as people signed up to them knowing what it meant, if they didnt understand they should not have taken the money.
About time people face up to the fact and harsh reality of greed and having it know.

Andy, winchester,

The ultimate prices for trying to keep up with the Jones'!

If you think times are hard, you ain't seen nothing yet!

Richard , Washington DC, USA

What happens if you rent your home?

Caroline, brighton, uk

Should have just let the greedy banks go bust. They will anyway.

Chris, London,

as we have bailed out the banks and financial institutions via our taxes shouldnt they now have a duty of care to help us all the irresponsible posts on this blog forget that they may not be able to meet repayments if serious illness such as cancer affects them nat west are particularly aggressive

penny vizoso, weybridge, england

"If you don't repay debt you pay the consequences.
Frederick, London, UK"

Noone is doubting that.
People just expect a little better from the institutions that have incurred massive amounts of debt which they have no means to repay other than to rely on the government which has no money itself

Nick, Truro,

There is certainly a compelling argument to say that if you have borrowed money you have to pay it back. Unless of course you are being bankrolled by governments, in which case we have to help the banks with their own spending.

Neil, Montpellier,

Everyones credit limit is auto increase if u pay it off, its their tactic hoping you will use it and not be able to pay it off at d end of d month. therefore u payintrest and they make money. the push the limits for their gain not ours. and they never ask if u want a rise in credit.

Rob, London,

This is absolutely scandulous.
We. the people bail Northern Rock out and they take your home off you ??
No mention of bringing the people who caused this rescession to book ????
What a shambles

Graham, Swansea, UK

If people are stupid enough to rack up thousands of pounds of debt that they cannot service, then they deserve to feel the consequences. I hope that their memories from thier years living on credit with make up for the next ten years of misery...

Chris F, London,

Philip, Cheltenham,

Bang on the money (and paid for in full from savings)

Simon, Yorks,

This is outrageous! Unsecured should mean just that, whether personal loan or credit card, people pay the higher interest rate so that their house is NOT involved, how can this be allowed. Our newpapers must take up this scandal, stir public opinion and get the politicans to act.

Alan, Preston, UK

This is irresponsible scaremongering. A charging order in itself does not automatically ensure that the property is sold to pay off the debt and frankly any subsequent order for possession and sale is not likely to be given on such a small debt as the one quoted in this article.

Colin Wynne, Ormskirk, England

Why should we use our tax money to bail them out if that is how we're treated. Lets withdraw all our funds from those two named banks to teach them a lesson about people power

K bateman, Salisbury,

So we have to bail out the banks that fail but if we fail, the banks take our homes! How can that be right? There is something fundamentally and seriously wrong with this system.

jean Tucker, daventry, england

I thought an unsecured loan was exactly that, unsecured, and it was up to the banks to lend with due diligence on the loan being properly serviced. Plus an unsecured loan carries a higher interest rate than a secured loan. The banks want it all their own way, along with tax payer’s money...

K Garner, Ringwood,

Isn't this a sad indicement of modern society, the very people who have caused the current turmoil being allowed to keep their obscene profits and salaries whilst our feeble excuse for a government panders to their every demand for more and more taxpayers money.

James Jamieson, Livingston, Scotland

A major credit card company charging an interest rate of 29% have placed an interim charging order on my jointly owned property. This is an absurdity as secured loans are available at a fraction of this interest rate. I was not advised that my house was at risk when I took out the credit card.

brightmove, Wareham, Dorset

If irresponsible credit card users are bailed out or not penalised, is there not an incentive for the responsible and prudent ones to follow suit.. Yes, dont take their homes, what about their car or that plasma TV that they got with that card!

Ram, london,

The banks lent you the money to buy. If you can't pay them back they take the property that they lent the money on. you have not paid for it until you have no loan against it. Harsh but true.

Andy, winchester,

Consumers have the ultimate defence against credit card companies - don't use their cards. Or, if you feel you have to use them, pay them off in full every month by DDM (don't leave it to chance or to you remembering to write the cheque on time). Cut back on spending, save more and prosper.

Huw Sayer, London, England

An order for sale based on a charging order is at a judge's discretion and a judge must take into account the value of the debt in relation to the value of the property and whether there are any children living at the property.

Michael Kilpatrick, Manchester,

Neville, anyone paying a mortgage with a credit card is too stupid to be allowed a mortgage. Nobody forced them to buy a house they couldn't afford. Where were all the cries of foul playing banks when everyone thought they were getting rich on the magic property ladder? Pure greed from all involved.

Edward, London,

disgraceful, there is no protection for a credit card consumer from themselves.

they should do something about consumers forced to build up massive amounts of debt on crap they cant afford. its a national scandal that we allow these people to get themselves in such a mess.

Matthew, Cambridge, England

ew bail the banks out, the gov now owns part of the banks the money they borrowed at the time had lower intrest rates, yet we pay the higher rate coz they changed, but the banks still through us out, they could reduce our payments over a longer term... but their profit is more important

Rob, London,

The blame falls not only on banks and credit card companies. Aggressive debt collecting firms like LINK FINANCIAL who will purchase a credit card debt at 15p/20p in the £ will aggressively seek charging orders, even though they have purchased an original £5000 credit card debt for say, just £1500..

David, Rochford, UK

I say enough is enough. why don't just start a protest. select one bank and withdraw our money. Show them who is in control. Plus t is time they paid back our money from unfair charges.

Andy Greggs, Northampton, uk

Katherine from Blackburn - was it the credit card companies who forced people to spend more than they can afford? To buy a newer car then their neighbour, the latest designer clothes, the expensive summer holiday? No - pure and unadulterated greed driven by the 'I want' culture.

Philip, Cheltenham,

If a judge grant a charging order then he/she should be procuted for bringing the justice system in to dis-arry and barred from his/her office. Its time to teach these money grabbing banks a lession

seng, swindon,

At least the people with credit card debts have had a nice holiday this year and have a big TV to watch the doom and gloom on.

Fred, Moray, Scotland

if you make a deal and break your side of it you must pay the consequences but why the banks want a worthless assets is beyond me, houses are worth squat these days- banks too it seems

peter c, Devizes, Wessex

we got to do something here!...it's a disgrace,
go to the street, protest...national massive day of riots have to come back to the street....ENOUGH IS ENOUGH !!!!

luca , London, uk

This Practice should be highlighted as a warning to those individuals who have been spending irresponsibly beyond their means in the hope that it will have no comebacks.
I strongly support such measures as a deternt to those who think they can buy things on credit and never pay it back.

S Abdul, Nottingham, UK

The fat cat executives of banks and building societies who re-possess homes for minimal debts should be shot for profiteering in this time of financial and economic crisis. Shame on the government for allowing it to happen!

Sidney Griffin, Scunthorpe, Lancs

An unsecured loan is & should remain just that - unsecured. That is why such loans cost more.

As to the rest -it is facile to argue that bonus's have not been set & encourage short termism & lead to repossession with rehousing costs to the public account. Disgraceful that it is done in the Rock

WAK.Coe, Llandudno, Upper Wales

Why is everyone supprised, by what banks are doing. Thats there job thats how they surrvive. The goverment is just talking about how he will help to get public on his side. They are in it together and don't care just as long majority of the public get the message about how they will not take houses

Marko, Birmingham, UK

Its all a scam. Credit card companies have no lrgal right to force a house sale. These are unsecured loads so if the borrower can't pay, thats the fault of the lender because this firm wanted higher interest and lost out. bad luck to the bank. Its similar to buying stocks..which can be worth nothing

seng, Swindon,

So therefore if you are a homeowner your interest rate should be significantly lower on your storecard or credit card. However, if you are a council tenant on benefits you don't have to pay anyway.

rob, ashbourne, uk

the survival everyone need food water warmth and shelter, these should be a right not a privilage and after we bailed them out they should bail us out. theres always a way but they think only of thir profits dont forget 40% lower profits still means their making profits just not as much as they want

Rob, London,

This is neither new or surprising. If you owe money you have to pay it back and a lender must have a mechanism to recover the debt otherwise all of the honest and responsible people end up paying for all the dishonest people. Local authorities use this all the time to claim care costs of the ill.

Fred, Harrogate, England

There does appear to be a sided view towards financial institutes in getting their money back. If consumers want to borrow money then they have to realised they must pay it back.

Thomas, Bristol,

nice, Northern Rock having been rescued with tax payers money is now trying to kick the tax payers out of their homes as well. then they will sell the home and pocket the profits I suppose
Banks changing their ways - when hell freezes over

bill, ely,

If I am owed money by the tax man can I obtain a charging order against the Inland Revenue for their assets? Sauce for the goose etc....

John Jenkins, Thame, UK

The use of charging orders is not new. This a form of enforcement that has been available for a long time and frequently used by the likes of credit card companies. Give the Judges some credit. Orders for sale are not given for small amounts of money. Eviction is always a last resort.

Jenny, Messina, Italy

It can take another several months before banks can apply for an Order for Sale, if they wish to (and not all banks do). And then they have to go before a judge to convince them as to why an Order for Sale should be granted, which can be a struggle. It's not as easy as the article makes out.

Louise, Liverpool,

This practice should be banned, it is a disgrace.
There is NO protection for the consumer from credit card companies, it is scandalous.

katherine langton, blackburn,

i demand the thousand my bank has lost me can i sieze the bank if i go to court?

andy, london, uk

I know a few people that will be thinking it will us next to loose are home.reading this article.they are paying there mortgage with the credeit cards.other loans. petrol.and food.just a matter of time now.when they are next on the list.to be homeless.

Neville,, Newcastle Upon Tyne, UK

This is the equivalent of helping a drowning man out of the water only to have him make off with your wallet. The government bailed out these financial institutions in order to stop this sort of thing happening. Greed, greed and more greed: will these people ever learn?

Roderick Campbell, Christchurch,

my bank has lost me thousands and have made no attempt to pay me back................. can i sieze the bank?

andy, london, uk

Credit card companies entrap and ensnare their customers by constantly raising credit limits without consultation. That surely must count against their ability to raise charging orders against home owners. Japan does better; no more credit until you pay off that months' balance.

Tom Benfordt, Kyoto, Japan

If you borrow money then you have to pay it back and any assets you have should be used first, however, unsecured loans carry a higher interest rate as they are not secured against your property.

This simply means there is no such thing as an unsecure load so they are bad trade descriptions.

joe, Edinburgh, Scotland

hang on - banks include the risk of default into the borrowing rate on 'unsecured' loans, right ? They can't have it both ways surely.

Mr Ray, Bangkok, Thailand

A charging order is what it says, an enforced charge on property, but there are other stages before it can lead to sale, and there may be negotiations with a first mortgage holder who wishes to avoid precipitate sale in, e.g., a negative equity situation .

It is NOT a repossession or forced sale.

Simon Bee, Mons, France

If the banks can still take your property if you are unabkle to pay the debt where is the justification for the much higher interest rates on so called 'unsecured' loans? How can the borrower be asked to pay more in light of extra risk when in fact there is no extra risk to the lender?

Darren Canning, Edinburgh, UK

Why all the fuss? Here's a lesson that all people should learn: Credit isn't 'free' money. If you borrow money, then you must pay it back. Simple. Oh, and... read the small print. No sympathy.

Joe Garrick, Wolverhampton,

If you don't repay debt you pay the consequences.

Frederick, London, UK

You fail to make clear that charging orders can only be made by a judge and even then only after someone has failed to comply with a court order to pay a specified sum. Even once an order is made, a court will be unlikely to order a sale where the sum is small. Only a court can order sale.

Simon Higgins, London,