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RBS to give struggling homeowners more time to pay

(Agencies)
Updated: 2008-12-01 16:51

LONDON -- Royal Bank of Scotland Group PLC said Monday it would give homeowners who miss mortgage payments at least six months before starting repossession action, double the three months it used to give.

Royal Bank of Scotland Group PLC said Monday it would give homeowners who miss mortgage payments at least six months before starting repossession action, double the three months it used to give. [Agencies]

The move comes on the first business day after the British government took majority control of the bank, buying a 58 percent stake for 15 billion pounds ($23 billion) and an additional 5 billion pounds worth of preference shares.

"We are determined to serve customers well in the difficult times ahead and have commitments to government that we intend to meet in letter and spirit," Chief Executive Stephen Hester wrote in the Financial Times newspaper.

RBS also said it would make sure its clients had the opportunity to seek legal advice before starting any repossession action.