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Daniel Richardson, Property Receiver and Insolvency Practitioner at CG&Co writes: 

 “INNUMERABLE words have already been written describing what the “new normal” will look like for lenders post-pandemic.

While there’s reticence about the uncertainty currently surrounding this brave new world in some quarters, others prefer to see any change as a decisive opportunity for growth.

Regardless of your approach, the simple fact is this…

After the existing stay on possession proceedings was lifted on Monday, September 21, this new normal has truly started manifesting itself.

It’s worth stating at this point that any lender authorised or regulated by the Financial Conduct Authority (FCA) needs to follow the FCA’s guidance and avoid either commencing or continuing possession proceedings until October 31.

But – for the first time in six months – it’s now possible for possession and enforcement proceedings to be progressed by Property Receivers on behalf of unauthorised lenders once again.

What must happen now?

At CG&Co, we began filing “reactivation notices” as soon as the stay was lifted to restart those possession claims that were issued before August 3, 2020.

Those claims that were issued after this date will be automatically heard and don’t require reactivating.

It’s necessary to demonstrate as part of this notice that a Property Receiver is in possession of any relevant information about a borrower’s circumstances and particularly whether the pandemic has had an effect on them.

The purpose of this requirement – which lasts until March 28, 2021 – is simple. It’s to ensure that the courts are consistently fully briefed.

At CG&Co, we’ve been proactively engaging with borrowers throughout the pandemic to garner this information.

And this was resolutely the right thing to do.

Over the last few days, the early indications have been that hearing dates could take place later rather than sooner.

For example, I’ve heard anecdotally that the first available dates at some large county courts in Southern England are in March next year.

As the courts in England and Wales struggle to catch up with the backlog, it’s likely that those cases with the right paperwork in place will be the ones that are heard first.

To conclude…

It’s imperative to remember that the economic fallout from COVID-19 will ultimately end – and it’s equally important to keep looking for opportunities beyond the current uncertainty.

At CG&Co, we intend to continue working highly proactively on behalf of our clients in the coming months.

In short, we’re determined to return loans to lenders as quickly as possible.

As the new normal manifests itself and greater certainty returns, lenders and brokers must consistently adopt the most proactive approach possible to Receivership.

And it’s equally imperative that they’re supported by the most knowledgeable and decisive team of Property Receivers.”

About CG&Co

Founded in 2012, CG&Co are specialist Property Receivers and Insolvency Practitioners and have the expertise to deal with default customers and return the funds to the lenders swiftly. The key points to our service:

– Partners take a lead role in all cases
– Fast and proactive
– Free pre-appointment review of circumstances
– All costs and fees rolled up to conclusion of appointment (no monthly bills or request to ongoing expenses)
– Reporting requirements agreed with lender

To discuss default cases please contact Daniel Richardson on 0161 358 0210 or daniel.richardson@cg-recovery.com

Daniel Richardson, Property Receiver and Insolvency Practitioner, writes:   “It might keep getting delayed, but it’s going to arrive at some point…

And when the stay on possession and enforcement proceedings is finally lifted, the courts will be hit hardest.

Late last week – just 48 hours before the stay was due to be lifted on August 23 – the government announced its intention to extend this date for the second time.

We’re now working to a September 20 deadline, although the government hasn’t ruled out further extensions if public health advice dictates this.

Put simply, the massive scale of the court logjam is going to manifest itself at some point – and the scale of this should not be underestimated.

Earlier this month, the extent of the problem became even clearer when statistics published by the Ministry of Justice covering April to June showed that, compared with the same quarter last year, mortgage possession claims, orders and warrants fell by 97%, 96% and almost 100% respectively.

What’s more, no repossessions by county court bailiffs were recorded.

So what do lenders need to do at this point in time?

I’ve never been more convinced that a highly proactive approach must lie at the heart of all undertakings.

Put simply, we all have too much to lose by not taking the swiftest recourse whenever default cases arise.

It’s worth stating at this point that any lender authorised or regulated by the Financial Conduct Authority (FCA) needs to follow the FCA’s guidance and avoid either commencing or continuing possession proceedings until October 31.

Bar for future extensions to the stay, those lenders who aren’t regulated by the FCA will – at least from the Court’s perspective – be able to resume stayed possession proceedings after September 20 via a “reactivation notice”.

Significantly, they have to demonstrate as part of this notice that they’re in possession of any relevant information about a borrower’s circumstances.

This includes information about the effect of the pandemic on the borrower, which will enable the court to be fully informed when reaching a decision.

This requirement lasts until March 28, 2021.

Since the lockdown commenced, CG&CO has been ensuring that recoveries are consistently as far advanced as possible, despite the fact that it’s been impossible to arrange face-to-face meetings due to COVID-19 restrictions.

We’ve accomplished this by entering into discussions with borrowers at the earliest opportunity via telephone, email or conference calls.

Consequently, we’re already in full possession of details surrounding the effect of the pandemic on borrowers for existing matters.

To conclude, we’re determined to ensure that the lenders we work for recoup their loans as quickly as possible.

As the new normal evolves and greater certainty returns, lenders must consistently adopt the most proactive approach possible to Receivership.

And it’s equally imperative that you’re supported by the most proactive team of Property Receivers.”

About CG&Co

Founded in 2012, CG&Co are specialist Property Receivers and Insolvency Practitioners and have the expertise to deal with default customers and return the funds to the lenders swiftly. The key points to our service:

– Partners take a lead role in all cases
– Fast and proactive
– Free pre-appointment review of circumstances
– All costs and fees rolled up to conclusion of appointment (no monthly bills or request to ongoing expenses)
– Reporting requirements agreed with lender

To discuss default cases please contact Daniel Richardson on 0161 358 0210 or daniel.richardson@cg-recovery.com