Mortgage possessions - Gordon feels your pain

Mortgage repossessions are rising at the fastest rate since 1991. According to the MoJ quarterly figures [pdf]:

  • Possession claims in the first quarter of 2008 were 38,688, 7% more than in the last quarter of 2007. The rise over the last year was 16%.
  • 27,530 mortgage possession orders were made on a seasonally adjusted basis, 17% higher than in the first quarter of 2007 and 9% higher than in the fourth quarter of 2007. 
  • 47% of mortgage possession orders were suspended compared to 47% in the first quarter of 2007 and 46% in the fourth quarter of 2007.

Caroline Flint and the Chancellor announced a £10 million package of measure to ’support homeowners facing difficulties with their mortgage’.

This package includes measures to ensure that financial advice and support is available for borrowers who may need it and includes an additional £9 million extra funding for face-to-face debt advice provided by third sector partners including Citizens Advice Bureau.

Let us unpick this a little. That is £9 million over three years, so £3 million a year to ‘third sector partners’. Citizens Advice claims advice is provided at 3000 locations, so, if equally distributed, that is £1000 per location. Of course, it won’t be equally distributed - some will be used centrally or for training and I would be surprised if certain bureaux weren’t targeted, particularly those that run Court advice, but it doesn’t actually look like much.

The other £1 million (over three years!) is presumably to fund the other promises:

  • expanded access to free legal representation at county courts throughout England for households at risk of repossession;
  • strengthened National Housing Advice Service to provide a new comprehensive debt advice service
I take this to mean a bit more support for duty scheme possession solicitors. Does anybody know about the ‘National Housing Advice Service’? It has slipped beneath my radar, or do they mean Community Legal Advice?
The press release adds that this £10 million
builds on the services already in place, backed by £560 million Government investment, such as face to face debt and financial advice, a national debt helpline, homelessness prevention work by every council, legal aid, and financial support for low income households who may face short-term difficulties in repaying their mortgage.
Uh huh. Few mortgage repossession cases are eligible for legal aid. Council ‘homelessness prevention’ is hardly of use and ‘financial support’ amounts to limited payments of interest only, after six months of eligibility.
The government is also talking to the main banks on avoiding repossessions. However, my anecdotal experience, also reported by Shelter, is that it is sub prime mortgagees, second mortgagees and secured loan holders who are pushing for repossessions, often with relatively low amounts at stake. Given the great frenzy of cashing in equity over the last few years, this could present a very large ongoing problem.
Meanwhile, the Civil Justice Council are consulting on proposals for a mortgage possessions pre-action protocol. The consultation paper is here [pdf] and the consultation ends on 23 May 2008.

The value of disinterest

That’s disinterestedness, not uninterestedness, should anybody who went to school after about 1990 be reading this. Does nobody really read Kant any more? But, in a rather dismal demonstration of the trope of irony, this is likely to be an outright rant on the virtues of disinterest.

While most of us were focussed on the immediate effects of the Civil Legal Aid reforms on the financial viability of the private legal aid firms and the not-for-profit sector, there is another aspect which threatens not so much the viability as the foundational values of practice in the area. It has certainly not gone unnoticed, but perhaps had fewer headlines and caused fewer concerns. What is worrying is that the evidence that this will be a bad thing is not projective, but already with us.

I’m not talking about the evidence that the fixed fee legal helps have already pushed people into cherry picking simple matters, worrying though that is. It is rather a question of the current and future funding of advice work.

The LSC’s reforms are supposedly focussed on increasing access to advice. To that end, CLACS and CLANS are proposed - centres or networks that have a virtual monopoly on legal aid  funded advice provision in the area. The idea being that clients who usually have a plurality of problems can have the full range addressed - or at least receive advice on them - in one place. This, in itself, is not a bad idea.

But CLACS and, to some extent, CLANS are supposed to receive funding from a range of sources, not least (not at all least) local authorities. For example the (as yet failed to be established) Leicester CLAC or the (on hold for years at best) Cornwall CLAN. Why is this a bad idea? Why should a decently funded ‘holistic’ advice provision be objectionable?

The answer can be found in part in a simple swap of near synonyms. In place of ‘advice’ try ‘assistance’. (In fact, this should be adopted by the LSC - in place of acts of advice, record acts of assistance). Assistance means aid in resolving or mitigating the problems. Advice merely means being told what the problems are and, at best, what the advisee might do about it themselves. It is a question of action over information.

In a few recent posts on his blog, Housed has expressed his frustrations with being a CLS funded housing advisor in a CAB. The specific source of the frustration has been that the management of the CAB, which receives local authority funding, has been reluctant to support litigation against the local authority as landlord or housing provider. (See here, and comments here, for example).

As far as I can tell, there is no suggestion that the LA has ever leant on or threatened the CAB in terms of funding in any way. There is no suggestion that the funding was given conditions or limitations. But, but, but…

Where a local authority is a major funder, it is inescapably the case that an advice provider, at least at its management level, will have relations with the local authority in mind; they will always be concerned with the attitude of the local authority to them. This will inevitably filter down, in one form or another, to the frontline. It will shape the actions the body will support or encourage, although not necessarily consciously or as a matter of policy at all.

I should be clear that some LA funded bodies can and do avoid or mitigate this pressure, but that does not mean that it will not always be there. For this reason, I don’t think that Housed’s experience is in any way an isolated or extreme example.

The principle of legal aid funding used to be to enable people to obtain independent legal advice and assistance. Note the independent. I want to be clear - advice without the will to back it up with wholehearted assistance where it is needed is next to meaningless. For those in the greatest need, improved access to advice is often a nonsense unless they can also access legal assistance that is unaffected by any other consideration. After all, very often where legal action is needed, it will be against the local authority in one manifestation or another.

The great and saving merit of private legal aid solicitors (and non-LA funded not-for-profits) is that we are disinterested. We have no interest in bringing or not bringing an action against a local authority beyond the merits of the case itself. We also have no fear or concern in bringing such a case. We are in principle, and to date in fact, beholden to nobody. We are in principle, and to date in fact, free to consider a case on its merits without any back of the mind niggles about pissing off a local authority funder or losing the favour of the local bigwigs. Our greatest virtue (apart from being bloody good lawyers) is that we genuinely don’t give a toss what the landlord/benefit provider/housing authority/local councillor thinks of us, or what financial levers they might otherwise bring to bear.

To anybody wishing to raise an objection at this point, of course this does not mean we are disinterested in any specific case we are engaged in. Our job is to represent the client’s interest. And, of course, if it is a case where costs may be obtained against the opponent, we have a direct financial interest ourselves - albeit one that the CPR (and LSC merits based funding) ensures is pretty closely tied to the merits of the client’s case.

The truly terrifying prospect, which is already with us, is that ‘advice’ replaces, rather than augments, ‘assistance’. That LA funding, whilst apparently arms-length, weighs on the mind of the advice provider and shapes, however unconsciously, what they will do for the client.

If this funding format is extended to whole regions, supplanting and replacing the independent sector, then frankly, God help any clients with a difficult case against the local authority.

We in the private/independent sector do, of course, have one huge interest; one which is not ours alone. That interest is that the LSC does not continue on the path of abandoning the principle of independent legal advice and assistance regardless of government policy - which is to say that access to the law to defend one’s legal rights should remain the prime aim of public funding.

[Edit 10/05/08] William Flack, in a response piece to this post on his blog, has suggested that my view of independent solicitors is somewhat rose-tinted. That could well be the case, but what I was concerned with in this post were the structural pressures of funding.

No doubt there are dodgy practices concerned with, shall we say, maximising the return from the Legal Services Commission. In most instances, these practices will not actually affect the client - in civil matters at least - although the pressure to string things out may. (There may also be an issue when bringing cases against private individuals or bodies - will there be the money for a costs award when the claimant wins?).

However, this is different to funding issues which impact on not only what type of matter can be handled but, most importantly, against whom a case will be taken. In that respect, the independent solicitor is in a more disinterested position.

Cardiff homeless - tactical lessons?

Thanks to Housed and Garden Court’s bulletin for the pointer to this Ombudsman’s report [pdf] on Cardiff’s failure to provide temporary accommodation pending enquiries on what was a prima facie case of ‘not reasonable to remain’ homelessness.

Cardiff were operating a ‘housing options’ filtering scheme and refused to accept Mr F as homeless until he had notice of eviction.

I don’t want to go through the details - which will surely sound very familiar to most housing advisors. Instead, I wanted to look at the case in terms of tactics for advisors and the utility of various routes.

In this case, the Ombudsman awarded compensation of £1500. It is not clear when the complaint to the Ombudsman was made. However, Mr F’s first approach to the Homeless unit was in March 2006. He was not put into temporary accommodation until about August 2006, after a possession order was made, and this was apparently after the Ombudsman had begun investigations. The Ombudsman’s report is dated 16 April 2008. So, although the report is completely devastating in regards to Cardiff’s then practices, it was of little avail to Mr F at the time to complain to the Ombudsman, as he was still not taken into temporary accommodation until after a possession order, despite the investigation. The report then took at least 18 months to appear.

Mr F did have the help of a solicitor during the period March - August 2006. The solicitor apparently repeatedly called and wrote to the HPU during this period, pointing out the conditions Mr F and his family were living under, the intentions of the landlord and also supplying evidence of medical concern about the impact on the health of the infant son.

In that sense, the solicitor provided all the information that Cardiff could reasonably have required to actually make a decision, let alone find that a s.183 HA 1996 duty was triggered. But Cardiff didn’t respond. A passage from a solicitor’s letter from May 2006 (two months in) is quoted in the report:

Mr [F] is living in accommodation which is currently being extensively renovated by his landlord. We have spoken with the landlord and in the landlord’s opinion the premises are not fit for habitation, and as you will appreciate Mr [F] is extremely limited in the accommodation which he can obtain bearing in mind his limited resources.

Whilst we appreciate that the landlord has given him Notice to Quit, it does appear that the premises may be unreasonable for him to occupy at the present time and we would be grateful if you would kindly look into considering his homelessness application on that basis.

Cardiff simply ignored this and the other letters and calls. Although they had no justification for ignoring them, (and tried to blame an individual officer), I’m not surprised at the lack of response.

I have no idea if the solicitor was a housing specialist - they are said to be the ‘family solicitor’ - and I don’t want to be particularly harsh, not knowing the circumstances of their instruction. But I do think there is a general tactical lesson to found here.

In my view, when your client’s circumstances are such that there is a clear prima facie housing duty under s.183, pending enquiries, one needs to give the recalcitrant local authority all the reasons why the duty has been triggered, and the history of the client’s presenting to the LA.

But one doesn’t ask the LA to look into it, one insists that they respond, via a Judicial Review pre-action protocol letter before claim. And one insists that the LA respond pretty much immediately, with a deadline beyond which an application for Judicial Review with interim injunction application will be made with no further notice. Copy the letter to the LA Legal Services. Then, if there is no reaction in time, make the JR application. (Assuming there is time, I’d usually want to get Counsel’s advice and drafted grounds pre-issue, of course).

Sadly, asking the LA to kindly look into it will often at best get a delaying response, at worst achieve nothing at all.

I have no doubt that I might be regarded as unduly aggressive in advocating these tactics. But, as the Cardiff Ombudsman’s report makes clear, one is properly insisting that the LA comply with their legal duty, not asking a favour or trying to persuade them to do the right thing. It is worth looking at the response of the then operational manager of Cardiff’s homeless services to see why the ‘giving the LA the information and asking nicely’ approach might well be of little utility. In interview with the Ombudsman, the manager:

was unable to give my investigator the current definition of homelessness saying that it had been a long time since he had looked at the legislation. When asked to expand on the statements in the formal response as to the overriding priority being given to homelessness prevention, the Operational Manager moved away from this position saying that he had not wished to convey an impression that considerations about homelessness prevention would over-ride the assessment process as a matter of course but went on to say that local authorities in Wales have a performance indicator to reduce homelessness applications, this being a consideration in future grant awards and it is appropriate that the options of advice and prevention should be a first response.(33)

So he didn’t know the law and was pre-occupied entirely with reducing homeless applications. Given Councils’ policies (and Government pressure), it is not surprising that these should be the concerns of homeless units. (That this is about policy driven practice, rather than any individuals working in HPUs, should be clear).

The merit of the aggressive (but still polite, of course) approach is that it bumps matters up to Legal Services immediately, who are, at the least, going to have to deal with the more obvious legal deficiencies in their client’s dealings. If this doesn’t get results straightaway, carrying through the threat with an application for JR with injunction application focuses minds wonderfully.

The benefit of the approach is the likelihood is that the client’s application will be accepted and they will receive temporary accommodation quickly. It is therefore hugely in the client’s best interests.

However, there is a caveat. Should the LA choose to fight the JR, rather than act to remove the grounds (effectively settling the case), it will take months to years to get a substantive hearing at the Administrative Court. There is no one simple answer to what happens to the client in the meantime - it entirely depends on the ongoing situation.

There will also be people, I have no doubt, who will object that making applications like this is why the Admin Court is bunged up and that this is a needless waste of the Admin Court’s time. I entirely agree. It shouldn’t be necessary to have to threaten and make applications in this way, only for the LA to back down in the light of its indefensible position.

I should also be clear that I am no fan of making an application as a threat, regardless of the details of the client’s case. But where the client has a viable case, their interest is paramount, and if the LA’s inaction means an application, so be it.

As a post-script, I’d like to mention that I will put up a related post shortly about issues of independence and the ability to take an aggressive approach to local authority decisions (or lack of them) in this way, provoked by some posts on Housed’s blog.

Mental Capacity

William Flack has made another considered post on the issue of mental capacity for the purposes of Civil Procedure Rule 21 on his blog. He has also begun a wiki on the topic, which could be a very useful step. (For those not sure what a wiki is, see here, in self referential kind of way).

Contributions are apparently invited, but, despite me having enthusiatically created a user account, there doesn’t seem to be a way to add to or edit the pages at the moment - looks like an issue with permissions, I hope.

Edit 6/05/08 - One has to be added to those permitted to edit - and then it works. Anyone interested should contact William Flack to get permission, which can be done via the Wiki page, I think. Think up a decent username first!

World famous round here 2

Nick Holmes of Binary Law, renowned throughout the legal information tech world as being a very nice man indeed, has been generous enough to include Nearly Legal as one of his Blawgs of Note in an article for Legal Executive Journal, April 2008. Apparently, the article also featured a Family Lore post and one of mine alongside the article.

Nick’s blawgs of note included Family Lore, Charon QC and Impact. And who in their right mind could argue with that?

In paper based media, Nearly Legal has now featured in or written for, in chronological order, The Specialist Paralegal, the Solicitors Journal and the Legal Executive Journal. Sweet and Maxwell or indeed Rupert Murdoch where are you? I may need a job in a few months time…

While waiting for Weaver 2

The Joint Committee on Human Rights has recommended that the Oftenant regime and the Housing and Regeneration bill extend the scope of the Human Rights Act to Registered Social Landlords. In response to the Housing Federation complaining that this would limit their ability to raise private finance by making them public bodies, the committee said:

there was ‘no basis’ to the belief that giving associations a duty to act in accordance with ECHR rights would change their status from private to public ‘for any purpose other than the applicability of the Human Rights Act’.

So there. But while this is not a bad idea at all, at least as far as it might help with the most egregious forms of RSL behaviour, it is unlikely to make it into the Housing bill at this stage (even though it is being frantically amended).