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

welch9

Hi all,


I am now reading some people are receiving there 3rd letter which tells them how much redress they are receiving. My own situation is a little different, I received the letter in February but mine did not say I was definitely affected. It said due to the complexity of my loan etc etc they were still investigating further.

What does this mean?, why is mine so different and complex?

Has anyone else had the same letter and then had any follow up?

Just so I can give you a picture, I had an unsecured loan for 23k at 7.7% from May 2005 to Oct 2012, which then changed to the SVR November onwards.

Any opnions?,

I work abroad so getting on the phone to them is a little difficult most the time.

cot1198

welch9 wrote: »

Hi all,


I am now reading some people are receiving there 3rd letter which tells them how much redress they are receiving. My own situation is a little different, I received the letter in February but mine did not say I was definitely affected. It said due to the complexity of my loan etc etc they were still investigating further.

What does this mean?, why is mine so different and complex?

Has anyone else had the same letter and then had any follow up?

Just so I can give you a picture, I had an unsecured loan for 23k at 7.7% from May 2005 to Oct 2012, which then changed to the SVR November onwards.

Any opnions?,

I work abroad so getting on the phone to them is a little difficult most the time.

I think they know exactly who is affected, they have known about this for over 12 months. I would say if you have had two letters you will be due redress. There is still quite a lot who have not had their redress applied.

welch9

cot1198 wrote: »

I think they know exactly who is affected, they have known about this for over 12 months. I would say if you have had two letters you will be due redress. There is still quite a lot who have not had their redress applied.

Hope so, just came off the phone to them. They said no further update as yet.They still have 5 more weeks to write to me.

geeka

i'm in the same situation, think its a sit and wait one for us both. see what they reply with. mine is a together mortgage with 3 secured loans all of them individually under 14k.

welch9 wrote: »

Hope so, just came off the phone to them. They said no further update as yet.They still have 5 more weeks to write to me.

tracy7

Evenfields wrote: »

Do you think Martin Lewis was wrong in supporting and guiding customers to reclaim bank charges? Rather than spout about people making unscrupulous claims, why not bang on about the often unscrupulous activities of these banks and financial institutions, which helped fuel the circumstances and weight of national debt they are now all asking us to shoulder.

No I do not believe Martin Lewis was wrong to support and guide customers to reclaim bank charges which were unfair and used as revenue generating tools.

I empathise with people who have been forced or coerced into payments for PPI which they neither wanted nor needed. For those who were actually mis-sold these policies.

What I abhor are the opportunistic companies which have sprung up to take advantage of this successful campaign to clean up the dirty tricks of the banking trade, with the constant pestering by text and phone to take advantage and get a slice of Mr or Mrs Gullibles compensation, that and the people who jumped on the band wagon just because they could, not because they were truly mis-sold to.

It has been allowed to spiral out of control with the consequence that these losses will be tempered by customers by some other means.

This mistake was discovered in February last year. Has it occurred to anyone just what they were doing for so many months?

The money has been paid each month during that time by customers, many who might have struggled or scraped together the monthly payments not aware that NRAM knew they had no right to be demanding payment of interest within these payments.

Just think of the customer who has struggled to make payments and especially during this period has been a few days late and then receives a late payment charge from NRAM.

So the demand that any redress is paid directly is valid as is the 8% interest as they continued to demand payments even when they knew about the mistake many months ago and did not tell customers until December 2012.

This is a very valid point, whilst I do not agree that the payments should be reimbursed in kind during the full period of non-compliance I do agree that any monies taken between February of last year when the discovery of the mistake was actually made and the point of correction should be reimbursed with interest, if requested, because this is the point where they failed in their duty of care to the customer and knowledgebly took illegal payment where it could have and/or can be demonstrated to have caused financial loss. I would argue that interest rates of 8% with current savings rates being so low are unrealistic.

I still maintain that recouping the payment further down the line is still the most beneficial option for existing customers who are not immediately reliant on a quick payout.

IainHL

tracy7 wrote: »

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I would argue that interest rates of 8% with current savings rates being so low are unrealistic.
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The 8% interest that people quote in situations such as these is the County Court Claim Interest rate that people are entitled to include on their claim, should they need to take it that far.

cot1198

IainHL wrote: »

The 8% interest that people quote in situations such as these is the County Court Claim Interest rate that people are entitled to include on their claim, should they need to take it that far.

Quite true, statutory interest

This is the amount of interest that a court would award should you win case of this type. It is quite acceptable then to ask for this interest to be added from the start of your claim.

lennonc1

Yes the FOS can award statutory interest just the same as what a court might grant, that is the point of the fos to stop small cases like this going to court.

jonomassey

I have just come across this thread and I think I might be entitled to some redress as well. I had a together mortgage with a £24000 unsecured loan at 5.99%. This has now been paid off as we have moved house, so I'll be phoning NRAM on Monday to give them my new address details. We paid in total 5 years fixed at 5.99 and then around 7 months at 4.74%. Does anybody know what is being paid out and how it's calculated? I've read around 20 pages of this thread and can't find where it tells you. Many thanks in advance.

lennonc1

From oct 2009 till whenever you had redeemed the loan, calculate how many months from then and whatever your monthly payment was, how much was interest from that?, so in my case 40 months of interest, I pay 95 per month and 75 is interest, I think, so 75 x 40 months....something like that, I will have to look at statements going back til then an highly doubt I have them all. Plus they will have to owe bac and charges, like default charges and direct debt returned charges etc, but best to have your info to check over it.