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

jimmy1000

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.

do you work for NRMA-OR LEMON?

jimmy1000

lennonc1 wrote: »

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.

Hi lemons-what is the new thread please?

cheers:money:

lennonc1

A few points for you jimmy1000

1 - You are now just getting on everyones nerves. And we are not taking any notice of you from now on.
2 - What is with the name calling, so childish and uncalled for!
3 - All discussion is taking place via pm and email now so most of us dont really care about your opinion

The new thread is a private group and need to request permission to join, which in your case would be denied.

I do know you work for them, so all your efforts here are in vain in afraid to say.

tracy7

I didn't blame northern rock customers for the recession I merely pointed out that we are in a recession and cutbacks have been made, that finding money to payout this amount would simply compound the problem further. If it isn't physically available, how can it then be re-circulated into the economy.

I don't think Northern Rock are the best company in the world, given different circumstances I would have made different choices. They gave me the ability to get on the housing ladder, an opportunity I would unlikely have had for a good number of years otherwise and for that I am grateful. I entered into the deal because I saw it as an opportunity to get on the housing ladder and to counter the number of years I would have spent paying dead money as rent, it was a calculated risk that I planned to use in my favour and switch as soon as I was able.

The failing point of many has been to borrow far more than they can afford to repay, taking it over longer, more expensive terms and to continue to live beyond their means. I am guilty of living beyond my means at times but I work damned hard to pay it back and don't expect the world to pay my way or bail me out.

Yes I have accepted the redress, I see it as some recompense for the rate of interest I (we) have paid while everyone else has been on a super low rate of interest. I just view it simply that some balance in the grand scheme of things has been restored. The difference between accepting a reduction in my balance is that it has no impact on anything right now or for the next 10 plus years.

It was an error which was made, a mistake, people are human. It wasn't left deliberately languishing for 4 years it simply wasn't spotted. It may have been a slapdash mistake but an oversight it was. Unless some employee didn't agree with the interest rates we were paying either - LOL - and deliberately let it fester!!! Ooh all jump on that conspiracy theory!

Accepting it as a reduction in balance makes more financial sense than other options, unless of course you are so far up the proverbial creek without paddles that you are blind sighted to and cannot see the long term financial benefit.

Our interest rates have shown a modest reduction parallel to those given by other mortgage providers albeit at a very much higher level so in response to various people saying that mortgage rates could go through the roof I seriously doubt it. Whilst the interest rates of other mortgage providers remains stagnant I dare bet that NRAM's will too, any slight increase in other lenders rates will show a like for like increase in NRAM's. Increasing interest rates to cut off your cash cow - hardly!

Any large increase in mortgage rates in the current climate is not a risk the Bank of England are willing to take due to market instability and fear of a double dip recession, in fact I dare bet that any interest rates which happen in the future will be made in tentative 0.25 to 0.5% increments until the economy is well into recovery.

Yes I care about peoples jobs, about the devastation that is the high street, our services and just about any other sector at the moment. Any human being would be appalled at the living conditions and mental issues now facing a large proportion of people, the decline of institutions which have been built up over many, many years, the huge backwards steps we are taking socially. I know I have principles, morals and ethics, and anyone with an ounce of common sense can see that for themselves. The evidence is there for all to see, anyone with less than the requisite number of synapses to rub together may well find this difficult. Yes I have sarcasm too, it is the lowest form of wit, there I saved you the trouble!

I really don't agree with people goading others, I don't find it funny, interesting or even irritating because quite frankly its pathetic. I tried to put across a viewpoint so that others may actually see things from a different point of view and actually consider that all actions have equal and opposite reactions. So that they might actually realise the benefit of taking a reduction in balance, actually I would have taken that as a given considering this is a money saving website, but it seems not. I'm pretty sure Mr Martin Lewis would recognise this as one of his key principles.

tracy7

lennonc1 wrote: »

I thought this was interesting - nram remain profitable!!!!!!

The remediation is not expected to delay materially the ultimate timing of the repayment of the NRAM government funding, which stood at £19.6bn as at June 2012. The Treasury continues to estimate that it will fully recover all the taxpayer support provided to NRAM.
NRAM has continued to perform strongly and arrears levels have fallen by over 18% over the course of 2012.!
Further repayments of the NRAM government loan have been made. In the eleven months to the end of November 2012, £1,370m had been repaid reducing the total funding balance to £18.5bn.!This brings the total NRAM loan repayments to £3,470m since the formation of UKAR.
NRAM's interim financial results for the 6 months to June 2012 show a statutory profit before taxation of £305m, and NRAM is expected to remain profitable in 2012.

I think it is highly likely that these profits are being used to repay the government and tax payer, that these funds are already earmarked by the government to buffer the effects of spending cuts already in place and those planned for the future.

tracy7

IainHL wrote: »

Could I ask which other forum please? I have an interest in researching this as I believe there is another provider of (secured) loans, CCA regulated, that has been issuing non-compliant statements since October 2008.

Any response received to this perfectly valid question?

lennonc1

tracy7 wrote: »

Any response received to this perfectly valid question?

Yes had been replied to via pm as we are all doing now, saves the hassle and debates on this thread as it is getting us no where.

Evenfields

IainHL wrote: »

Interesting, where does that information come from?

http://www.itv.com/news/story/2012-12-11/northern-rock-270m-payout/

Heres the CEO of UKAR to explain on second video down.

I wonder if they have looked at ALL of the paperwork then how come they haven't spotted the oops naughty Northern Rock you've managed to lend lots and lots of customers over 25k before April 2008 and they're on Consumer Credit regulated agreements then........

Also WHY did it take from discovery in Feb to December to announce then? Why the delay?

Next stop Specsavers

lennonc1

An interesting read!! I have lots of info from you I need to read over, I will send some good links to you when I get to the computer tomorrow.

IainHL

jimmy1000 wrote: »

on a seperate matter NRAM have told me that interest rates will be going up in the next three months by a further .35% which will hit us hard.

Where have NRAM told you this Jimmy? Who in NRAM told you? By what method?

If my memory is correct and my mortgage rate is 4.78% then this will repesent an increase of 7.3% in my monthly payments. Not good, but not devastating.