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

cot1198

InkZ wrote: »

Lets face it, there just isn't £270 million pounds of cash sat in a bank account ready to pay NRAM customers that have suffered no loss due to a technicality on a statement, no matter what your sense of entitlement. If they do it for a handful then they have to do it for everyone.

It doesn't really matter how unjust people feel they are being treated, the money isn't there, so any complaining is basically a waste of time.

I'm going to sit here and wait for my cheque as an ex customer and then I'm going to use it to pay off some of my new mortgage.

It is our time to waste and we think the fight to be treated as equally as ex customers is worth it.

Can I ask you if NRAM had tried to get out of paying cash payments to ex customers as you are would you not be fighting to get back what is rightfully yours? I think you would.

Do you think everyone affected by the breach in CCA regulations has suffered no loss because of this 'technicality'.
If you do this means you also and all the other ex customers.
So really you should contact NRAM and tell them you have suffered no loss because of their little technicality and you do not want to take their money. Would you be willing to do that?

There seams to be an underlying feeling that ex customers are right to take the cash because they have paid off their loans like good responsible people and will use the money to pay off other debt. While existing NRAM customers are money grabbing moaners who want the money to go on holiday or go on a spending spree. After all they are still with NRAM they must be bad people. And I for one am sick of it, if it is OK for ex customers to take NRAM's money then why not existing customers. If you are willing to take NRAM's money even when you think they have done nothing wrong and you have suffered no loss then you do not have the right to have a go at people who are fighting for their right to be treated equally.

Sorry rant over

Evenfields

What you also need to remember is that NRAM have altered the terms of the loans. By simply re-applying the contractual interest back to the account, the loan term changes and is then not for the amount of time stated in the original contract and so in doing this, NRAM have changed the term of the loans and therefore altered the loan contract without the customers consent. NRAM would need to get the customer's agreement to do this and get them to sign a new CCA contract with the amended terms. The only way IMHO for NRAM to correct this mistake IS to pay back this interest to people in a separate form i.e. cash or cheque as it is a separate matter.Why they think they can do it this way is beyond me. There is no provision in the contract to simply alter the term as they wish. It's nonsense and just an easy get out route as no 'money' has to be found.

InkZ

Lol, I think you'll find I didn't pass any judgement on anyone or call anyone a money grabber and as above you are welcome to waste your time as much as you like. One fact remains though, none of us have suffered any loss and the fact that the loans will be adjusted is an incredible result and I am perplexed that people are feeling hard done by, but each to their own.

Evenfields

InkZ wrote: »

Lol, I think you'll find I didn't pass any judgement on anyone or call anyone a money grabber and as above you are welcome to waste your time as much as you like. One fact remains though, none of us have suffered any loss and the fact that the loans will be adjusted is an incredible result and I am perplexed that people are feeling hard done by, but each to their own.

Nobody here is wasting their time!

Making sweeping statements about none of us have suffered any loss is just silly! You do not know that and is incredibly naive.

The reason NRAM had to 'redress' the interest payments was that they breached the loan agreements or contracts by not adhering to the law that regulates them, the Consumer Credit Act. I think you'll find that if you flipped the situation and if you or any other customer breached the terms of their loan agreements, NRAM would not hesitate to use this law to make you adhere.

The point is they NRAM are not in charge, they are merely consumer credit licence holders and they have to adhere to the law whether they want to or whether it's convenient or not. They have chosen this bizarre method because it means in real terms, they don't have to come up with the ready cash, but that's their problem not the customers! This method of redress goes against the CCA as I pointed out in an earlier post.They cannot decide for both parties, the customer and the lender. They are bound by the CCA and so are the agreements.

If you've got your lot and are happy with it then I suggest you jog on in the nicest possible way.

InkZ

Evenfields wrote: »

Making sweeping statements about none of us have suffered any loss is just silly! You do not know that and is incredibly naive.

I struggle to believe that you have suffered loss because you weren't reminded how much you originally borrowed each year but then I suppose it is entirely possible.

My original point is that I think complaining is a waste of time because they aren't going to pay out millions of pounds they haven't got. I don't care what your reasons are for thinking you are owed something and as above you are all welcome to invest your precious time to get an outcome that will likely not happen and I wish you the best of luck with your endeavours.

lennonc1

It is up to the individual to decide if they have suffered a loss, I would say I have from the moment I took northern rocks together mortgage.
We should have been consulted in this matter, not them deciding and dictating everything.
Our circumstances have changed as we now are both not working, I am on maternity and my partner has just been made redundant, so no way to pay our mortgage....I might just ask nram to use the 3,500 they adjusted our account with and use that to cover mortgage for next while as they seem to be able to change terms and conditions then surely I am too!! :-/

Evenfields

InkZ wrote: »

I struggle to believe that you have suffered loss because you weren't reminded how much you originally borrowed each year but then I suppose it is entirely possible.

My original point is that I think complaining is a waste of time because they aren't going to pay out millions of pounds they haven't got. I don't care what your reasons are for thinking you are owed something and as above you are all welcome to invest your precious time to get an outcome that will likely not happen and I wish you the best of luck with your endeavours.

What you are failing to take on board (again) is the following:-

NRAM do have the money.

Despite being a large financial institution with huge resources and with plenty of warning that this part of the CCA was being amended and the consequences, they failed to check that they were complying.

Failure to adhere to sending correct statements means that as well as being unable to charge interest, they are also unable by law to enforce the loans for e.g. take a customer to court for arrears in order to obtain a county court judgment or reposessed etc. So if they have done so during the period of years when they were in breach, then customers would have suffered loss.

'thinking you are owed something' Inkz that is not in dispute! It is the method of repaying the money to customers that Northern Rock weren't lawfully entitled to take. NR know they owe customers money, it's the fact they and only THEY have decided it's in THEIR best interests to alter figures on balance sheets. Altering the figures, alters the length of a loan which is a prescribed term on these loans. On this thread we believe that is wrong and there is nothing in the CCA to support this move by NR.

The money paid out in unlawful interest was real hard cash that went from the customer and into NRAM's account as cash.NRAM were not entitled to it, they therefore need to pay it back to the customer in the same way it came.

Unless you've been under a stone these past few years, then you'll know that NR have been extremely fond for e.g. of taking any struggling customers to court for arrears, especially in loans and mortgages.

'they aren't going to pay out millions they haven't got' ???

Flip that on the reverse. NRAM expect struggling customers to pay out what they haven't got......or they take them to court.

InkZ

Like I said, good luck with your endeavours.

jonomassey

Just thought I would bump this up to the top again. Has any ex-customers heard anymore from NRAM? I sent a message regarding my change of address etc and got no response so I'm thinking of now making a official complaint.

Thanks

daisymay2008

jonomassey wrote: »

Just thought I would bump this up to the top again. Has any ex-customers heard anymore from NRAM? I sent a message regarding my change of address etc and got no response so I'm thinking of now making a official complaint.

Thanks

still heard nothing they have until 21st June then I can and will complain to FOS, that will be over 6 months since I raised the issue with them, which I feel is disgraceful, something tells me they are stalling for a reason, either they are hoping ex customers will forget all about it or they are trying some kind of low baller and use some lame excuse not to pay out