Charging orders for debt relief require assessment, says Dallas Matthews

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Charging orders for debt relief require assessment, says Dallas Matthews

Wed 24th Nov 2010

Lenders should assess individual circumstances before applying a charging order on a debt, according to a source from Dallas Matthews.

Chris Jenkins, creative director of the marketing agency, described how it is "concerning" to see financial institutions using such actions to secure small amounts of money.

In his opinion, banks should assess circumstances before utilising a charging order, adding: "Lenders need to make an effort to try to judge each case on its own merit and take into account things like payment history and current situation."

He made his comments in response to a statement by the Office of Fair Trading, which highlighted how several companies have been using charging orders to recoup debts as small as £600, which it deemed can sometimes be unfair.

A charging order turns unsecured debts into secured debts.

Mr Jenkins claimed a person who owes £600 may only have incurred charges for late payments, court costs and debt collection fees.

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