Reclaiming NRAM ERCs .....whats our chances?

edited 3 October 2011 at 8:15AM in Reclaiming Mortgage Fees, Council Tax, etc
1 reply 2K views
picardygirlpicardygirl Forumite
558 Posts
Part of the Furniture 500 Posts Combo Breaker
Last October we redeemed our NRAM mortgage to go to a high street lender to get away from NRAM (and got a good deal) ...... I phoned NRAM and asked if there were any deals they were offering to waiver ERCs, they had previously been offering deals up to end of June last year, but I was told NO, there were no deals available and full ERCs would have to be paid if we redeemed our mortgage .... so we paid our ERCs and left NRAM.

In February/March 2011 NRAM announced they would redeem all ERCs. So i asked/made a complaint to NRAM that we were charged full ERCs four months earlier, and as they were now waiving all ERCs could we have ours refunded, as they had "a deal" on offer til middle of 2010, and we were told quite clearly no deals were available. Following my complaint, NRAM wrote stating they would offer us a deal to refund our ERCs but only if we can prove we borrowed more than £3k more than our redemption statement, plus 8% interest on the amount since October 2010.

We were unable to take this offer up as we had not borrowed additional funds of £3k, we did however, borrow £1000 more and were given access to additional £2400 in way of an overdraft on a new mortgage offer account (barclays) ....... so we took the case to FOS, who agreed to take the case on ....... this was in May 2011.

FOS wrote to us in May saying they had all the information required and an adjudicator would be in touch within 7-8weeks (taking us to July). At the end of July, FOS wrote again saying due to high volumns of work (totally understandable) there would be a delay, but will certainly be contacted within 2 months (mid september). Now we are at the end of September and have received a letter from FOS saying, no further information is required from us and await to hear when the case is assigned to an adjudicator.

We appreciate FOS are over whelmed in complaints and are dealing with as and when possible, but just wanted peoples opinions on whether they think we've even got a chance to get back our ERCs?

We know we signed up to a deal with ERCs and paid them because we broke the contract, but our complaint was NRAM had a 6 month gap of supposedly not offer any deals, to then backtracking and saying they would refund us but only if we had borrowed additional funds, if they had offered us this deal at the time, we would have borrowed additional funds (another £2K) from our new lender to get out of paying ERCs - but they didnt offer this to us at the time!

Any thoughts ...... we wait for the post every day hoping to hear one way of the other ;)


  • picardygirlpicardygirl Forumite
    558 Posts
    Part of the Furniture 500 Posts Combo Breaker
    To all the 252 that have read this post ....... we've had a phone call from the ombudsman today, they agree with us, well sort of!

    Because, NRAM had offered to reimburse us if we could prove we had borrowed x amount of pounds, the ombudsman felt that they should meet up half way with our claim, and have agreed to refund half our ERC's plus 8% interest on the amount!

    We are pleased we've got anything back, the whole amount would have been wonderful, but still a few bob we are getting back.
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