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

StevieG36

I have also lodged complaint with nram about loyalty rate and have been given 'final response' letter dismissing complaint. I should receive loyalty rate after 7 years but once 5th year up they put me on a discounted rate of 4.78%, which is 0.01% below variable rate in order to ensure that I cannot be eligible for loyalty rate, as I do not meet their criteria because I have a discount on my rate of a huge 0.01%.
I should have been given option of taking discounted rate of 0.01% of variable rate from years 6-30 (was in a 5 yr fixed rate) or not given discounted rate until loyalty rate kicks in at year 7, giving me a choice to take the loyalty rate of 0.25% at year 7-30, equating to a saving of £35 per month in current variable rate of 4.79%. I know which one is most beneficial to me.
Yet again another example of no transparency, and quite frankly more miss selling of the mortgage!
When I look at the ofcom watchdog issue investigating and ensuring the transparency of our gas/electric bills, and prices being clear and easy to understand, this makes a mockery of this situation. Energy bills are a year on year thing, where you can break free of that provider every year, sometimes straight away if not on a fixed tariff. People are tied into mortgages for their lives and although financial advice could be sought, these are decisions people take on which potentially affects their whole working life. Is it fair that nram and mortgage companies are allowed to get away with issues such as this?! I believe not!

BritAbroad

kazonuk wrote: »

still no letter from NRAM

has any ex-NRAM customers had anything?

No - I have called twice and received zero information, no holding letters, nothing. I'm not quite at the 8 week point yet, but as soon as I am, I'll be sending a letter.

MisterSpoon_2

At 8 weeks I got another letter telling me they "needed further time to assess things and would contact me within 12 weeks" of that date.

I've not heard anything since. Interestingly on the news this morning they said "Northern Rock had paid out £270m to people" which surprised me.

Guessing nobody has had any cash yet have they?

lennonc1

MisterSpoon wrote: »

At 8 weeks I got another letter telling me they "needed further time to assess things and would contact me within 12 weeks" of that date.

I've not heard anything since. Interestingly on the news this morning they said "Northern Rock had paid out £270m to people" which surprised me.

Guessing nobody has had any cash yet have they?

Have you complained that you dont wish to have redress applied to your account and rather choice of direct payment?

I have had the same letters and still waiting on word, but my compliant will be passed to FOS soon as I post tomorrow.
If we can get enough we are looking to set up an action group, then we can submit a super complaint to FSA, will need backing from a registered consumer group, like Which, we are in correspondence with. Please see this link to other thread -

https://forums.moneysavingexpert.com/discussion/comment/60192961#Comment_60192961

123chase

StevieG36 wrote: »

I have also lodged complaint with nram about loyalty rate and have been given 'final response' letter dismissing complaint. I should receive loyalty rate after 7 years but once 5th year up they put me on a discounted rate of 4.78%, which is 0.01% below variable rate in order to ensure that I cannot be eligible for loyalty rate, as I do not meet their criteria because I have a discount on my rate of a huge 0.01%.
I should have been given option of taking discounted rate of 0.01% of variable rate from years 6-30 (was in a 5 yr fixed rate) or not given discounted rate until loyalty rate kicks in at year 7, giving me a choice to take the loyalty rate of 0.25% at year 7-30, equating to a saving of £35 per month in current variable rate of 4.79%. I know which one is most beneficial to me.
Yet again another example of no transparency, and quite frankly more miss selling of the mortgage!
When I look at the ofcom watchdog issue investigating and ensuring the transparency of our gas/electric bills, and prices being clear and easy to understand, this makes a mockery of this situation. Energy bills are a year on year thing, where you can break free of that provider every year, sometimes straight away if not on a fixed tariff. People are tied into mortgages for their lives and although financial advice could be sought, these are decisions people take on which potentially affects their whole working life. Is it fair that nram and mortgage companies are allowed to get away with issues such as this?! I believe not!

I agree completely. I am in the exact same position, I complained 27th February, but haven't had a response yet. I know it won't go anywhere though. We are on their "special rate" 4.78%. What happened to their loyalty towards us?

craaaigo

123chase wrote: »

I agree completely. I am in the exact same position, I complained 27th February, but haven't had a response yet. I know it won't go anywhere though. We are on their "special rate" 4.78%. What happened to their loyalty towards us?

For me this is a much bigger issue than anything else mentioned in this thread because it is an example of the lender going out of their way to mislead and rip off customers. I can't see how they can get away with this as the terms and conditions of everyones mortgage states that after a fixed period runs out you will move on to the lenders SVR. Then after 7 years you'll be entitled to the discount. I can't therefore see how they can legally turn down anyones request to go onto the SVR of 4.79% in years 5 and 6?

craaaigo

Thats using the example of a 5 year fix mortgage obviously...

123chase

craaaigo wrote: »

Thats using the example of a 5 year fix mortgage obviously...

I know, I had 3 years fixed (which doesn't count, apparentley), then 5 years fixed, then went to SVR at 4.78% for 2 years so far.

But as I was put on the special rate of 4.78% I am not not entitiled to the loyalty discount, even though I had the mortgage with them since 2003.

Complaining to N'ram doesn't get you anywhere, what do you suggest? is there anything else we could do?

craaaigo

123chase wrote: »

Complaining to N'ram doesn't get you anywhere, what do you suggest? is there anything else we could do?

What did they say? I'm 6 years in so have only become aware of this nasty little trick recently and thus haven't spoken to them about it.Its obvious that the 0.01% discount is purely designed to allow them to renege on the 7 year discount. Im interested in how they justify not putting you onto the SVR for the years immediately preceding year 7 when everyones terms and conditions state that this is what will happen when their fixed rate runs out.

lennonc1

We are in the progress of setting up social media and website for all issues with NRAM, this will also be included, we are looking to set up an action group for everyone with a problem with them, seems to be the only way forward as they will see it go public and will have to answer to a super complaint or group action. We can do something about it, I need emails off the folk who would like to included, pm me if you want to join our campaign. The more the better!!!