MSE News: Northern Rock pays £270m to 150,000 after gaffe

Refund_me

Ok - Makes sense now.

It all depends when you took your loan out. If you took it out before 2008 then the CCA regulation in force for your loan is the one which was current at the time of the loan being taken, so therefore only covering less than 25k.

Says so on the NRAM website

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In the case of loans taken out before 6 April 2008, the CCA only applies where the amount we agreed to lend you (the amount of credit) was £25,000 or less.

kelr101

Refund_me wrote: »

Ok - Makes sense now.

It all depends when you took your loan out. If you took it out before 2008 then the CCA regulation in force for your loan is the one which was current at the time of the loan being taken, so therefore only covering less than 25k.

Says so on the NRAM website

---

In the case of loans taken out before 6 April 2008, the CCA only applies where the amount we agreed to lend you (the amount of credit) was £25,000 or less.

What if the paperwork you have regarding your loan (assuming over £25k), is on letterhead stating it is covered by the CCA Regulation? Which many peoples are.

bigbadwolf500

Refund_me wrote: »

Ok - Makes sense now.

It all depends when you took your loan out. If you took it out before 2008 then the CCA regulation in force for your loan is the one which was current at the time of the loan being taken, so therefore only covering less than 25k.

Says so on the NRAM website

---

In the case of loans taken out before 6 April 2008, the CCA only applies where the amount we agreed to lend you (the amount of credit) was £25,000 or less.

Doesn't make sense to me . My mortgage / loan was taken out Jan 2007. The loan (£30K) paperwork clearly states it is regulated by the CCA 1974 even though at that time it only covered loans up to £25K
Really confused...

Refund_me

The fact that the paperwork states that it is CCA regulated when it is not is a different issue. You could maybe get them for mis-selling and therefore get the debt written off - along with any payments you have made refunded.

Luisfilipe

Hello everyone. Me and my Partner took the together mortgage with Northern Rock in the summer of 2004,original unsecured loan was for £20999 when it switched to N-Ram the paperwork they sent me stated that the ammount borrowed for the unsecured loan was for £20735 so a there is a mistake straight away,my Mortgage account doesn't have 16 digits does that sounds that me and my Partner coule be in line for a refund?
Many thanks

Pea2380

My husband and I had a 'together' mortgage with a £30k unsecured loan taken out in June 2007. We have since 'sold up'. I contacted NRAM this morning and gave them our new address so as not to miss a letter! They told me that they were looking in to all unsecured loans, in particular the loans given as part of the together mortgage. Their website seems to be contradictory with reference to whether or not they are looking into loans less than £25K only or those said to have been regulated by the CCA 1974. I suppose all we can do is wait....

bigbadwolf500

Refund_me wrote: »

The fact that the paperwork states that it is CCA regulated when it is not is a different issue. You could maybe get them for mis-selling and therefore get the debt written off - along with any payments you have made refunded.

I like the sound of that. I guess if they use the excuse that my loan wasn't regulated by the CCA and thus I'm not due a refund, I could then go back and challenge that the contract is unenforecable. They can't have it both ways....

Thanatos

To all the people moaning about the taxpayer footing the bill.... this is not actually the case, every single penny of the Northern Rock Bailout will be repaid to the Treasury, in fact they even released this statement:

The bill would not delay the repayment of government funding, which stood at £19.6bn in June. The Treasury said it would fully recover the whole of the taxpayer support for the bank.

They are managing this due to the artificially high interest rate that those who are trapped with Northern Rock are paying, while you are enjoying the lowest rate of tax ever on record...

Oh, and we are also paying tax, despite paying the higher interest rates!

Refund_me

bigbadwolf500 wrote: »

I like the sound of that. I guess if they use the excuse that my loan wasn't regulated by the CCA and thus I'm not due a refund, I could then go back and challenge that the contract is unenforecable. They can't have it both ways....

Only a court can decide if the agreement that's headed regulated, when it was not, is unenforceable

You could argue and say it is unenforceable as its a misrepresentation to the borrower of the protection available, but the court may only rule in your favour if you have not benefited from such an item of protection that would have been available to you - so basically if you have lost out from not having the protection.

Is an interesting one for sure - I am sure they are looking at this now wondering what the best outcome for them is - refunding for all "together" unsecured loan interest amounts or only for those under 25k , risking the backlash of the non-regulated against it being sold as regulated part.

simon_the_poet

Chrisb80 wrote: »

Hi, I too am in a position where I had a £26k unsecured loan that was signed in 2005, which stated subject to the CCA 1974. I also have paperwork that does not comply with the act, so theoretically would comply with the refund albeit the amount borrowed was not under £25k. I don't know where I/we stand on this matter?!

I guess wait for a letter (can't see it arriving somehow!!) and then put a call in...

If anyone finds out the answer please let us know!

Thanks

Just reading through this thread so apologies if this has been answered already.

The 25K ceiling on CCA regulated agreements was lifted for none business loans in May 2008, after that date all loans(except first mortgages) are covered by the CCA