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

Evenfields

I think you are being very naive about all this imho.

NRAM are in profit, the money comes from their profits which comes from the likes of yourself and all of the other customers on hiked up rates despite the B.O.E base rate being at an all time low.

There are far more complex reasons as to why they are not keen to payback directly.

The recession is not the fault of the NR customers.

Your argument is flawed. If customers got back the redress in cash, that's 270 million circling in the economy to boost it. It's not going to do any good for consumer spending as a figure on the balance books at NRAM.

I think you should be far more worried that the ex-chairman of Northern Rock who led the bank into the depths of failure has just been elected to sit in the House of Lords.

Also it wasn't a result of an oversight. It was a mistake going back to 2008 after the government took it on. It was basic stuff with law and guidance in the shedloads months in advance of this amendment coming in as law on 1st October 2008.The consequences were there for NRAM and their lawyers to see in full black and white! They then had 4 years to spot it! It was reported it was spotted finally in Feb last year. That's a long time to stand still and let the bill for redress get even bigger.

I admire your strength of feeling but you are barking up the wrong tree.

lennonc1

Evenfields wrote: »

I think you are being very naive about all this imho.

NRAM are in profit, the money comes from their profits which comes from the likes of yourself and all of the other customers on hiked up rates despite the B.O.E base rate being at an all time low.

There are far more complex reasons as to why they are not keen to payback directly.

The recession is not the fault of the NR customers.

Your argument is flawed. If customers got back the redress in cash, that's 270 million circling in the economy to boost it. It's not going to do any good for consumer spending as a figure on the balance books at NRAM.

I think you should be far more worried that the ex-chairman of Northern Rock who led the bank into the depths of failure has just been elected to sit in the House of Lords.

Also it wasn't a result of an oversight. It was a mistake going back to 2008 after the government took it on. It was basic stuff with law and guidance in the shedloads months in advance of this amendment coming in as law on 1st October 2008.The consequences were there for NRAM and their lawyers to see in full black and white! They then had 4 years to spot it! It was reported it was spotted finally in Feb last year. That's a long time to stand still and let the bill for redress get even bigger.

I admire your strength of feeling but you are barking up the wrong tree.

I couldn't agree more. The government is the reason the country is in the state it is, not nram customers, you can't say this directly relates to nhs cuts, I worked within nhs in Scotland and must say such a better service as our ministers have abolished prescription charges, there will always be cuts in public sector jobs unfortunately but it is certainly not our fault nor are we gettin in the way of life saving operations. The money for the army will always be there, that's for sure.
As evenfields says above nram are making a profit and will continue to, they will hike interest rates up this year so essentially clawing it all back, I for one want out, I want to sell, that money will go to the house for selling as I can't afford the estate agent fees as I will have to sell for 10k less that I bought it for 6 years ago. So I'm still loosing!! I'm sure you don't really care about people's rights or circumstances but you do need to get off your high horse and accept it is ok for us to fight back on this.
I have been inundated with messages relating to this and have a large group unhappy and have te right to question it!
You have accepted redress so ou have still taken this money, so you don't really get the right to put people off!!!!!

lennonc1

Scottydog09 wrote: »

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.

Hiya, you can start things now with the fos as you know what nrams reply will be, it's a pretty standard response. I haven't had my final response but I have started proceedings with fos as I know they will say no, best to start early. I wouldn't hold my breath tho as I can see fos taking there side after research I've done, they are meant to be unbiased but will just have to wait and see. I have started a thread for possible class action as I've had so many emails thought it might be the next move.

IainHL

Evenfields wrote: »

Also it wasn't a result of an oversight. It was a mistake going back to 2008 after the government took it on. It was basic stuff with law and guidance in the shedloads months in advance of this amendment coming in as law on 1st October 2008.The consequences were there for NRAM and their lawyers to see in full black and white! They then had 4 years to spot it! It was reported it was spotted finally in Feb last year. That's a long time to stand still and let the bill for redress get even bigger.

Interesting, where does that information come from?

Thrifty_Pixie

why was my thread for ex-NRAM customers merged with this one?? i deliberately started it so that we didn't need to read through pages of cheque vs balance adjustment backbiting...

IainHL

lennonc1 wrote: »

As evenfields says above nram are making a profit and will continue to, they will hike interest rates up this year so essentially clawing it all back

That's the second time I've seen someone suggest that NRAM will be putting up interest rates this year (the first one I saw was the one useful contribution from Jimmy1000!). Where does this information come from?

drussmonkey

IainHL wrote: »

Where does this information come from?

Blind supposition from what I can make out. The only way the SVR or 'Special Rate' would increase would be in line with a BoE base rate increase, which I don't consider very likely at all. The new BoE chief has even mooted the possibility of negative base interest rates, so if anything the rate could go down further (assuming they keep it basically tracked).

lennonc1

IainHL wrote: »

That's the second time I've seen someone suggest that NRAM will be putting up interest rates this year (the first one I saw was the one useful contribution from Jimmy1000!). Where does this information come from?

I was only quoting jimmy1000s very helpful comment on interest rate going up as he works for them and seems to be in the know!! :-/

gavman99

I just noticed that the NRAM website has updated their general info message about this issue to say :-

We have recently sent a further letter to the majority of these existing NRAM customers, providing specific details about the impact on their loan account including the amount of redress, and revised term end date if applicable. We will be writing to the remaining existing NRAM customers in the next 8 weeks.

Looks like up to 8 weeks before I'm going to hear.

lennonc1

Thrifty_Pixie wrote: »

why was my thread for ex-NRAM customers merged with this one?? i deliberately started it so that we didn't need to read through pages of cheque vs balance adjustment backbiting...

Strange, it should still be a seperate thread.