Scottish Labour has welcomed the Royal Bank of Scotland's announcement that they will not repossess the properties of customers who fall behind on payments for at least six months.

Shadow Health Secretary Cathy Jamieson applauded the move and urged other high street banks to follow the lead shown by the Royal Bank of Scotland, which should mean that fewer families lose their homes as a result of the recession.

Ms Jamieson has also written to the Royal Bank of Scotland seeking assurances that customers who fall behind with their payments on unsecured loans will also be treated sympathetically. She said in her letter:

"The Royal Bank of Scotland is routinely applying for 'petition for adjudication' in the Court of Session to transform unsecured debts into mortgages attached to people's homes.

This aggressive practice creates thousands of pounds of legal expenses for home owners who are already struggling and ultimately increases the risk of repossession.

"Most Scots will regard such a sledgehammer approach to debt enforcement from a bank that has received £15 billion from the taxpayer as unacceptable and I look forward to hearing that it will now end."

1 December 2008