Regulator imposes requirements on Royal Bank of Scotland's use of charging orders - a way of collecting unsecured debts that could see borrowers lose their homes.

State-backed bank RBS has been ordered by the Office of Fair Trading (OFT) to stop using controversial "charging orders" to collect small debts. It is concerned about the "oppressive" use of these legal orders, which can allow a lender to make a claim against a borrower's home even if the debt was taken out on a credit card or loan. The regulator has imposed restrictions on the way Royal Bank of Scotland and NatWest, both members of the RBS Group, are enforcing debts on their customers. A bank can apply to a court for such an order if a borrower fails to keep up with their payments on unsecured debts such as a credit card, a personal loan or hire purchase commitments. The charging order secures the debt against your home or other property you own and means you could lose your home if you don't pay back what you owe, although a further application to the court would need to be made to do this....Read more here: OFT bars RBS debt collecting that puts homes at risk