Northern rock loan over £25,000
Comments
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I am really confused how this would work out for me!! I had a loan of £30k which was interest only repayment.
Northern Rock used the CCA against me when I fell in arrears by issuing a default under the CCA for the outstanding amount (interest only) and got a judgement against me.
Now if the case is that they have to repay me the interest back (or adjust my loan amount) then technically I never was in arrears of the loan??? If I was never in arrears of the loan (if i do get redress) then was the default invalid?
This is such a mess, but no doubt they will find another excuse to justify their actions!0 -
my understanding is that the whole point of redress is to put you back into a position you would have been in at the point the errors starting happening, and that you were not liable to pay interest from that point on until it was corrected.
In your situation, my view (and this is just my view, not a professional view etc) is that they should pay redress and also issue a correction on your credit file to remove the default, assuming you would not have been in arrears. The challenge may well be actually proving that you would not have been in arrears if you were not paying the interest.
You've got a strong case for doing something though; if they've used the CCA against you, they are effetively saying that your agreement is subject to the CCA agreement therefore you should be entitled to the same redress that the <£25k people received.
NRAM can't pick and choose when to use the CCA :-)0 -
Bigjazzy, your the same as me. They used the CCA against me in court and put an attachment of earnings on me too, which now technically they should have never been able to do as you cannot enforce an unenforceable contract.
I plan to confront them about this too!!0 -
A few years ago we fell into financial hardship and asked them if we could pay either the balance or just interest just until we got back on our feet...their response was not a chance and therefore we ended up with marks on our credit files and in the end had to go on a payment plan with a company. Where would we stand?0
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Strangely enough it says settled on my credit file and the negative default come off in 4months time anyway.
The problem is that they got a decree against me and in scotland this lasts for 20 years unlike a ccj which lasts 6 years. I tried to appeal this but the judge wouldnt acccept my argument re cca loan. It was funny as NRAM's lawyer defended this as though it was a cca loan...
There is no way for me to appeal this now as you only have one chance as overturning a decree which went against me. FOS have told me that they will not get involved because Northern Rock got a judgement and even if the judgement was wrong/illegal the fact there is a judgement they will not look at this.
So will will have to wait and see what the outcome is when NRAM come back with their recourse offer.
I am sure there will be tens if not hundreds out there in the same situation as me!0 -
I think anyone who had problems paying, and ended up with arrears would have a case.
Technically, if you stopped paying then they wouldn't be able to take you to court via CCA, would they?0 -
Strangely enough it says settled on my credit file and the negative default come off in 4months time anyway.
The problem is that they got a decree against me and in scotland this lasts for 20 years unlike a ccj which lasts 6 years. I tried to appeal this but the judge wouldnt acccept my argument re cca loan. It was funny as NRAM's lawyer defended this as though it was a cca loan...
There is no way for me to appeal this now as you only have one chance as overturning a decree which went against me. FOS have told me that they will not get involved because Northern Rock got a judgement and even if the judgement was wrong/illegal the fact there is a judgement they will not look at this.
So will will have to wait and see what the outcome is when NRAM come back with their recourse offer.
I am sure there will be tens if not hundreds out there in the same situation as me!
I hear what you are saying, but now this ruling is in place, it may be a different story altogether. Don't give up!!0 -
Whats interesting is that I was on interest only and therefore if the recourse is payment of all interest then, technically i didnt owe any money and as such wasnt in arrears....
will just have to wait and see what the recourse is!
I remeber reading somewhere that the recourse for the >25k loans was for the period in 2009 onwards....also there is mention of secured personal loans as well. The together mortgage of my mine had the mortgage + 2 secured loans + the 30k unsecured loan.
To date NRAM have not provided me with a copy of these agreements or a copy of my signed mortgage agreement!
just dotn know and will have to wait and see.0 -
The "Interest only" bit only applied to the mortgage, the loan element which is in question here was on a repayment basis at the same rate as your mortgage over the same term.0
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goaten2000 wrote: »The "Interest only" bit only applied to the mortgage, the loan element which is in question here was on a repayment basis at the same rate as your mortgage over the same term.
Goaten you are right sorry, been such a long time since I have properly looked at my paperwork. The unsecured loan was indeed on repayment basis. So NRAM will stick to the fact there was amounts outstanding even though what was quoted on the default notice was wrong and just reduce the balance of the amount owed.
They did this with people who had the loan of >£25k. No doubt they will rely on some legislation or previous case which will annul them of any liability that the default notice will have been incorrect on sums outstanding0
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