To ask the Chancellor of the Exchequer what research his Department has undertaken on the conversion by the courts of unsecured to secured loans against borrowers' wishes; and what plans he has to bring forward proposals to amend the regulatory regime affecting such cases.
I have been asked to reply.
The courts do not convert unsecured to secured loans, therefore the Government have not undertaken any research on the conversion by the courts of unsecured to secured loans against borrowers' wishes.
Courts do use charging orders. These are not the same as converting an unsecured loan into a secured loan. The purpose of charging orders is set out in section 1 (1) of the Charging Orders Act 1979 which provides that where a creditor is owed money under a judgment or order of the High Court or county court, a charging order may be made "for the purposes of enforcing that judgment or order" in order to secure payment of "any money due or to become due under the judgment or order". There are no plans to amend section 1 (1) of the Charging Orders Act 1979.