Asset Management Tips

However, qualifying creditors �those whose debts are able to be brought into an ERO� are specifically prohibited from making any other charge while the ERO is or was in force. The consultation, which has been launched as part of the Tribunals Courts and Enforcement Act 2007, will conclude on April 16.

The Finance & Leasing Association (FLA), which represents the credit industry, said that EROs were a good idea but it raised concerns that some debts, if included in the scheme, could hamper their members’ businesses. For example, it would want to ensure that motor finance companies were not inappropriately restricted from reclaiming their asset if borrowers fell behind with payments.

Some experts predict that EROs could have devastating effect on the payment protection insurance (PPI) market. read more