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Red2Black backs new approach to mortgage arrears


Debt recovery specialist Red2Black Collections is backing Government calls for a more sympathetic approach to homeowners with mortgage arrears.

Red2Black Collections, which offers outsourced collections at every stage of the debt collection life-cycle is backing the government’s new approach as a positive step to ensuring best practice in mortgage arrears, ensuring repossession is always the last resort, not the first.

The ability of Red2Black to offer outsourced collections is becoming an increasingly popular method of debt recovery for prospective clients, offering them more time and resources to adapt to the current harsh market conditions.

March 2009 figures from Credit Action, a debt charity, show that one home is currently repossessed every 10 minutes in the UK, along with 2,831 people being made redundant every day. These figures are tipped to increase with more homeowners getting into financial difficulties.

Nick Cherry, Director & General Manager of Red2Black Collections Ltd commented: “The introduction of the new government rules are an important and positive step to ensuring best practice in mortgage arrears.

Engagement with borrowers for an amicable solution can demand significant investment in both time and personnel and many creditors are now seeing the benefits of turning to specialist outsourced service providers to offer these additional solutions.”
He added: “We operate arrears and debt counselling visits to enable creditors to engage with borrowers and understand their circumstances. All possible avenues of avoiding repossession are also explored with borrowers such as pro-active risk profiling; extended terms, change of product, payment holidays, deferring interest or capitalising arrears.

“These are all done with a view to preventing the necessity of court action. Our aim is to keep more families in their homes and avoid the misery of repossession.”


 Red to Black Collections
 Debt Collection Agency
 Debt Recovery
 Asset Recovery

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