The CML said the decision was made despite the fact most respondents to the government’s consultation would support this approach.
The court case in November 2010 set the legal precedent for lenders to serve a calling up notice and wait two months before starting legal proceedings for repossession.
Kennedy Foster, CML policy adviser for Scotland said: “It’s disappointing to find that, even though the majority of respondents to the consultation agreed with our views that there would be negative, long-term implications from this judgement, the Scottish government has decided to do nothing.
“While the industry waits for the Scottish Law Commission’s review of this area in the next couple of years, borrowers and lenders will face adverse consequences through higher costs and extensive delays.”
