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

jimmy1000

cot1198 wrote: »

This is what I put on the FOS complaint form:

We are writing to complain that we donot wish to receive any redress due to us due to NRAM's breach of CCAregulations regarding our unsecured loan by way of taking the amount due offour existing loan balance and reducing the loan term. We wish it to be paiddirectly to us in the form of a cheque as customers who have repaid their loanswill be. We do not see why we should be treated any differently to customerswho have repaid their loans and feel by not giving us any choice other thanreducing our balance we are not being treated as equally as ex customers orindeed fairly. we do not feel that reducing our balance fully compensates usfor the financial loss we suffered. Money was taken in interest from our bankaccount over the period of non compliance and we feel it only fair that itreturns there we would also ask that as NRAM has deprived us of this money andnow must return it that statatory interest is added. On completion of the loanwe agreed to a term of loan and signed accordingly. We would therefore preferto be repaid the amount that has been taken and shouldn't have been and anyinterest so that the original term of the agreement still exists. We have alsoasked that our balance is not reduced with the redress until this matter isresolved

very best of luck lol

NRAM HAVE SPOKEN!:T

lennonc1

PLEASE DIRECT ANY FURTHER LEGAL ACTION DISCUSSED VIA PRIVATE MESSAGE PLEASE AND I WILL GIVE EMAIL.

I have had it confirmed that the likes of Nram and various other DMCs watch these threads avidly. As this is now a legal matter we should not discuss it openly. I will post link to new thread for class action soon. Thanks guys.

jimmy1000

class action:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

good old lemons....

no CHEQUE/MILK VOUCHERS WILL BE GIVEN OUT BY NRAM.

Please do not waste your time-led down the garden path-

NRAM are a very good mortgage company, they listen and take advice and treta you very good to me-to me over the years=near perfection.

please dont listen to othersagain and finally -NO CASH PAID OUT BY NRAM!!!!!!!!:(

jimmy1000

FURTHERMORE...

I have it on good knowledge that NRAM are going to shaft us on interest rates this year-up and above-to reclaim £270 million plus..

so actually their plan is to make more out of us.

which suggest to me-we should take the money off our balance..

cheers
:money:

ANewBeginning

Hi all

I received the standard replies to my emails. Two by email and one hard copy. Anyway - I decided to call up to get an update. I had all my documents out in front of me. So imagine my surprise when I was told that my mortgage 'was not and never had been a Together mortgage, so I was not entitled to any redress'!!!

Well - my paper work states completely the opposite. We borrowed 23950 unsecured loan in July 2000!!!

I was told to send copies of my documents in with a covering letter and it would be investigated. To say I am flabbergasted is an understatement.....

Now my dilemma is do I carry on pursuing redress, or breath a sigh of relief that they have bolloxed up our account - meaning we have lost the Together bit somewhere along the way? We are planning on moving our mortgage next year anyway.

Advice?

lennonc1

Still carry on pursuing it, if you have an unsecured loan under 25k covered by the cca. It doesn't matter wither it is part of the together mortgage or not. Keep on at them, the more of us the merrier.

nearlythere38

Im ex NR also. I phoned up some time in Jan and gave new address etc. Few weeks later got the standard letter saying they would investigate. Nothing else yet

daisymay2008

nearlythere38 wrote: »

Im ex NR also. I phoned up some time in Jan and gave new address etc. Few weeks later got the standard letter saying they would investigate. Nothing else yet

yes i'm still waiting too *yawn* don't see why its taking so long especially since they have sorted all the existing customers now (well those who are happy with the outcome anyway)

Scottydog09

There are so many conflicting stories about what NRAM can and cannot do in these circumstances. Surely there is some fundamental legal guidance on this issue. I didn't for 1 minute expect NRAM to offer to do this easily surely the FOS as an independent party will see sense. As far as I have seen on these forums no one has yet got to the point where the FOS have responded formally to uphold NRAM's position so until they do I am going to put as comprehensive a case to them as I can.......when NRAM finally respond to my complaint that is.

tracy7

I'm going to write this argument in very simplistic terms to avoid the risk of the use of name calling, employment by NRAM or any other conspiracy theory to defer or detract from the real issues at stake here.

I don't work at NRAM, I'm not involved in government policy, I'm just an ordinary person going about my own ordinary, little life, working hard to make something of it and make it all worthwhile. I work in the NHS on the front line and I do this to make a difference to peoples lives.

As I previously stated the actual saving from having the redress applied in such a manner as to reduce the length of the loan has a significant and far higher impact on the amount of interest you pay overall than the black and white saving you will have seen on your new statement.

This is a very generous and far reaching method of redress for something which has had absolutely zero impact on your account, and which was probably the result of an oversight during the changeover from Northern Rock to NRAM at a significant time of change in policy. It is not a policy which has been mis-sold or an agreement which you have entered into blindly.

It cannot have escaped anyones attention that we are currently in the grasp of a recession, with severe cuts being made right, left and centre. It goes without saying that to fund a payout of £270 million in the current climate would be social and economic suicide, having to find this amount of money would cause deeper, harsher cuts to already pared down services and perhaps even higher rates of taxation.

It makes moral and ethical sense to benefit the customer in the long term without risking sliding further into recession and a potentially non-viable and irrecoverable situation. Whilst people may view this as effectively cooking the books it is a win-win situation which addresses the issues and does so in a responsible manner.

For people baying for interest to be paid on top, had this mistake not been uncovered we would all be none the wiser, we would be paying what we agreed. You may try to argue that it is not money you would have chosen to pay had you known but effectively by getting the redress you are getting a repayment of interest by the very fact you will be paying less interest over the term of the loan as a result.

Having to find this extra money for existing customers to be paid upfront in addition to the payments to ex NRAM customers would result in more extreme cuts to services than we are already experiencing, and already knew more cuts were to be expected over the coming years before this story even broke.

It could mean a reduction of beds or staff in our NHS hospitals, it could mean that certain operations or treatments will no longer be available on the NHS, it could mean that buildings fall into disrepair and maybe even closure of more hospitals. This will undoubtedly have a significant impact on the number of patients who are treated.

It could mean that our emergency services become even more pared down, that the fire, ambulance and police services cannot provide the level of care they do now, that lives may needlessly be put at risk and even lost.

It could mean that our armed services may not receive the funding they require to keep themselves safe, that they may not receive the aftercare they deserve should they be injured or maimed in the course of duty. It could mean that terrorism becomes a more harsh reality as a result.

It could mean that our children may be taught in bigger classes due to a reduced number of teachers or that they have fewer resources such as text books, laboratory equipment, sports equipment etc all having an impact on their ability to learn and secure a better future for themselves. It could mean that buildings fall into disrepair and eventually forced into closure.

It may mean that our councils become more stretched with their limited budgets and this could have impact on other services we rely on such as waste disposal, job centres, libraries, provision of services to the vulnerable such as the elderly and children whose families are struggling to feed them, need I go on???

You may think this is all quite dramatic but consider the cuts that have already been made, remember that there are record numbers of people who are unemployed due to redundancies as a result of the recession, that higher numbers of people out of work increases expenditure on benefit with the double whammy of reduced income due to reduced levels of tax now not earnt from those same individuals. We are already stretched beyond our limited resources, there is more demand for those resources which is increasing daily, the evidence for that is in the news of further cuts to be made.

The money has to come from somewhere.