At home with PAP

A pre-action protocol for residential mortgage possession claims based on arrears was forward and came into force on 19 November 2008. It covers first mortgages and subsequent mortgages and, as to the latter, whether regulated or unregulated under the Consumer Credit Act 1974. Among the worthy provisions of the protocol— consideration to be given to postponement of a possession claim where the borrower can demonstrate that reasonable steps have been or will be taken to market at an appropriate price in accordance with reasonable professional advice; reasonable steps to be taken by the parties to discuss the cause of the arrears, the borrower’s financial circumstances and proposals for repayment of arrears; lender referral, where necessary, to appropriate sources of independent debt advice; written reasons by the lender within ten days for not agreeing any proposal for payment made by the borrower; and consideration to postponement of a claim where the borrower has made a genuine complaint to the Financial Ombudsman Service.