NRAM stalling on agreed payout.

saverjules

Hi,

I posted here over 28 days ago about getting an offer from Northern Rock to repay the PPI and interest that was owing on my partner's loan - totalling £6000.

£1500 related to a closed loan that had been rolled into the next one - this was received a week ago no problem.

The remaining £4500 related to a current loan and was in addition to paying some off the loan reducing the balance to £860.

When we called to pay the latest installment of the loan (under a new reference number) we were advised the balance was £916. When we queried this and asked where the £4500 cash settlement was they said there was a problem with the figures and it was in a "query pile" - due to the backlog they could not say when they would be able to resolve it.

I am correct in thinking, please someone confirm, that if we signed a settlement offer "in full and final settlement" that they have to pay out - even if they did get it wrong?

I have given them 7 days to resolve, but where do you suggest I go from here - escalation at Northern Rock - or straight to the Ombudsman?

This is so disappointing after what I thought the difficult part, getting them to admit liability, seemed so straight forward.

Does anyone else have any experience of this scenario?

amersall

:mad: Get this escalated to the highest level,did they give you the chance to have this paid by BACS? ask for this now as you have waited long enough and dont want to wait for a cheque to clear,they have done this in the past ,2 of our claims last year were paid by BACS.
Apart from this :rotfl: has the loan balance reduced?.

saverjules

Yes, the loan balance has reduced from £3500ish to 916, but the offer stated refund £4500, and reduce the balance to £860 with the remainder of the settlement.

We were made 2 offers on this loan - one was for the full refund but leaving the account in arrears, the other was to pay off the arrears and be paid the balance as bank transfer - we went for the latter.

Extremely confusing!!!

amersall

What was the total loan balance before the mis sell?.

saverjules

Thanks for replying, I am at home now so here is more detail. The offers were as follows

Option 1
Refund PPI£4826.75
Refund inerest £2543.09

Arrears on account of £2724.30

Remaining loan (after PPI cancelled and including arrears) £3584.95

Option 2
Refund PPI £2102.45
Refund interest £2543.09
Clear arrears of £2724.30

Remaining loan (after PPi Cancelled) £860.65

It was confusing when we got it (a 9 page letter of workings out) but these offers equate to the same figure either way, they just use part of the refund to offset the arrears in option 2 which we accepted.

purple45

If they say they don't know when they will be able to resolve it I'd take it to the FOS otherwise they could keep you hanging on indefinitely.

amersall

Give them a ring and dont stop pestering until they give you the refund that you opted for.
I would hang fire with the FOS at the moment,you could wait a very long time to get this money they owe you,give them chance to sort this out.

saverjules

So, I left it a week and having heard nothing I contacted NRAM again by phone.

The "new" loan agreement that we had received an account number for, with too high an amount compared to the settlement offer, has been voided.

No refund has been paid. A new agreement (unable to give me the account number and no letter received to date) has been set up for less than the settlement offer - £816.

I politely explained that I was dissatisfied, with no breakdown of the £816 figure, no refund, and no letter to explain what was going on.
The lady on the phone said that there were "so many PPI claims there was a backlog". I told her that the hard work had already been done and this was just waiting for the refund, and should not go back to the beginning of the queue again.

I have left it another week - we have received a letter closing the "new" account and thanking us for our custom with NRAM.

I asked on the phone last week if I could speak to someone more senior as I was unhappy with the answers given - I was told there was no one I could speak to. I have found a postal address for complaints to NRAM but can't face another long queue, I need immediate action - we need the money that is owed. Does anyone have the MD or CEO of NRAM Loan's email address?

I fear that if I go straight to the Ombudsman he will tell me to complain formally to NRAM first and so the cycle of waiting for weeks and weeks starts again.

I believe we have been absolutely more than patient here, we waited 8 weeks for our complaint to be reviewed, accepted the offer letter and it is now 2 weeks after the 28 day refund payment processing deadline.

If no email address does anyone have a number other than the standard one?

All advice/responses greatfully received!

Munro_Bagger

My OH accepted an offer made to him on 30/06/11 (the offer was made on 17/06/11). He has been in contact with NRAM each week, and on each occasion, has been spoken to very rude staff. He has also been given the 'we're very busy...there is a massive PPI backlog...Ventura are processing the refunds on behalf of NRAM and it'll take 6 weeks and not 28 days'. He received a letter today saying that PPI had been removed from his unsecured loan, and that they had changed his account number. There was no mention of the current outstanding amount attributed to this account number (which might of been helpful!). Like you Saverjules, he'll have to speak to them again today...and I think I can guess what their response will be!

I've done a quick websearch, and have come up with the following http://www.n-ram.co.uk/company-information/corporate-communications/newsroom/newsroom-2010/2010-10-01.aspx - it lists current names on the board. Hopefully, it's still current.

saverjules

Munro_Bagger wrote: »

My OH accepted an offer made to him on 30/06/11 (the offer was made on 17/06/11). He has been in contact with NRAM each week, and on each occasion, has been spoken to very rude staff. He has also been given the 'we're very busy...there is a massive PPI backlog...Ventura are processing the refunds on behalf of NRAM and it'll take 6 weeks and not 28 days'. He received a letter today saying that PPI had been removed from his unsecured loan, and that they had changed his account number. There was no mention of the current outstanding amount attributed to this account number (which might of been helpful!). Like you Saverjules, he'll have to speak to them again today...and I think I can guess what their response will be!

I've done a quick websearch, and have come up with the following http://www.n-ram.co.uk/company-information/corporate-communications/newsroom/newsroom-2010/2010-10-01.aspx - it lists current names on the board. Hopefully, it's still current.

We got ours in the bank today - have you got yours yet Munro Bagger?

Munro_Bagger

Hi saverjules! NRAM paid the PPI on the account - the outstanding amount was then transferred into a new account, with a new account number. My OH was told that the old loan account would be closed, and he would receive confirmation of this in the post.

My OH received the confirmation this morning BUT NRAM have closed the new account, not the old one!!!! Not quite sure how they've managed to !!!! it up...looks like another phone call will have to be made. Mind you, if they've closed the account, would that mean (*tongue in cheek*) the outstanding amount is effectively written off?!?!?!?