This new change to repossession law, contained in the Tribunals, Courts and Enforcement Act 2007, could allow creditors to speed up the repossession process. As this change will cut the time needed for creditors to pursue a repossession claim against a borrower who finds themselves with mortgage arrears and debt problems.

The current repossession law means that creditors can only apply for a charging order, which will secure unsecured debt against an asset, after the debtor has had a CCJ issued against them, and has further fallen behind on payments. The new repossession law,  would allow the lender to secure the debt when the first CCJ is issued, speeding up the process.

More than a million CCJs were issued in 2006, meaning that the change in the repossession law could lead to a huge increase in the number of applications for charging orders which could, in turn, lead to a rise in the number of debtors who face repossession.