The Ministry of Justice has published a consultation on whether a minimum threshold should be imposed on orders for sale applications (following a charging order) in relation to consumer credit debts only. According to the consultation, the reason for targeting smaller CCA debts is that they are unsecured and the debtors are paying a higher premium for this type of lending at the point of sale without realising the consequences if they fail to keep up the repayments.
There are two questions in the consultation:
- Do you agree there should be a threshold below which a creditor could not enforce a charging order through an order for sale for debts that originally arose under a regulated agreement?
- If so, what do you consider would be an appropriate threshold level and why?