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Consumers 'should be protected from bills of sale lending practices'
There is no place in a 21st century consumer credit market for bills of sale, it has been suggested.
According to Citizens Advice chief executive David Harker, such products are not compatible with the principles of fair trading.
He said: "There is no consumer protection and people can end up in serious debt and risk losing their car and even their home when they borrow money this way."
Bill of sale agreements effectively pass over ownership of goods to creditors.
As long as the borrower keeps up with repayments, they can keep the products, but if they default, the creditor can repossess them without a court order.
According to Citizens Advice - which operates a network of more than 400 bureaux across the UK - around 33,000 bills of sale agreements were made last year.
It suggested that those targeted for the agreements are often people with poor credit records and it advised consumers who are having problems with the arrangements to seek help as soon as possible. 
23/12/2009 14:09
News category: Consumer