NRAM Class Action on redress method.

I’m very interested to see how this all progresses (got my Nram letters & new statements recently). Would so much prefer the money than my term reduced.

As it stands my loan term is reduced nearly 9 years - or in other words i don't see any effect of the redress for 20 years - unless I re-mortgage or move house. 20 years untill it makes any difference AT ALL to me?! 9 years worth of fewer payments does reduce the total interest I’d be paying for the loan but the same amount in cash now could gain nearly as much in interest in a savings account over 20 years. Especially as the 'value' of a payment now of £100 or so will feel far less in 20 years time after inflation. Better yet the same amount in cash could pay off a credit card and save me £1000 in interest a year. my choice, but the current way is by far the worst option.

lennonc1 wrote: »

I know for some it makes sense to have money as our situations are all different and they havent taken that into account.
Have you complained to them and said they have done this without your authority??

After reading through all the helpful comments on these forums I’ve recently sent off a letter to NRAM to complain, no response yet though, for me a cheque would be far more benefit than no loan payments 20 years from now.

(sorry this next bit is a bit wordy - I don't quite know all the correct terms to use)

Am i wrong to think NRAM should be liable for additional compensation for the loss in interest on the value of the redress they've had sat in their bank as opposed to ours from oct 09 to now too? I also struggle to understand if we're loosing out down the line in the lost of interest the redress would otherwise get us should it be in our savings account and sit there for the next 20-30 years while the loan is paid out as originally agreed.

A bit of ‘theory crafting’ to get my head around a couple of issues (correct me if I’m looking at this wrong if anyone would be so kind):
being charged £85ish interest since oct 2009 to now - about 40 months means i've had a significant amount of money not in my bank earning me interest (or not paying off credit cards). It doesn't add up to alot but still nearly £100 if those payments had instead stat in a savings account (£1750 if instead i'd put those payments to pay off a credit card).

The redress for us totals about £3500, and as NRAM have sugested will reduce my loan term to 20 years (down from about 30). A redress of £3500 in a savings account for 30 years at a rate 2% above inflation would result in £6300 (or the equivalent because of inflation 30 years from now). That extra £2800 goes into NRAM's bank, not mine.

In contrast my current loan payments of £100ish as nram are proposing does mean my payments stop 9-10 years early (or something like this if I remember correctly). But 20 years from now £100 will feel more like £55 after inflation, £40 by the time my loan was supposed to be paid off. 9-10 years of not paying those sorts of amounts will add up to what today would feel like £5400. Not the huge saving it might first appear from reducing my loan payment by 9 years. And far less than the ammount i'd gain had the £3500 been sat in a savings account instead.


Better yet, in my case a cash payment today of £3500 for the redress would outright pay off a credit card with 30% interest. to me, having the choice is worth £1050 a year.


For me, it really does seem wrong we have no choice, infact it almost seems (if my fag-packet maths is right) like NRAM don't even loose out much at all.

lennonc1 wrote: »

I was told by trading standards to issue letter before action to their lawyers stating what you want, and that you will report them to the following authorities, OFT, Trading Standards and the FSA, as they have taken a great interest in this, also state that if they agree to pay you then you will not report them to the relevant authorities.

Its this bit i didn't think to include in a letter of complaint. I'm assumig that some point soon NRAM will reply with some 8 weeks holding type letter, i guess it might be good to reply at that point just to make that statement know formally.