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

Kat76

After NRAM's CCA regulation breach, it paid out interest to <£25K loan customers with existing loan accounts back in December 2012. As our loan had already completed, we didn't get a letter about this and it was only the MSE newsletter that alerted me to this matter. I rang NRAM and was informed that letters would be going out to all those with "completed" loan accounts in June 2013. Needless to say this never arrived. I chased them by telephone and letter, and amazingly last week a letter dropped through the letterbox to confirm a refund of ~£3K would be being issued as a cheque shortly.

If anyone out there had a completed loan and thus still hasn't had the due compensation / interest returned, chase them - it's worthwhile!!!!

:money: Thanks Martin and the gang for putting me on to this one!

Twit_Head

Hi
Apologies if I'm not in the correct place as I see this thread has not been used for some time.
Advice needed please as I am very, very confused!
I was originally unsure if I had taken out PPI with a Northern Rock loan, then became even more confused by CCA discrepancies.
I took out an unsecured loan for £8000 with Northern Rock in Feb 2006. All went well then unfortunately my income dropped dramatically and I went onto a debt management plan in August 2009. I was able to make a full and final settlement, and the account was marked as settled in November 2011.
I don't believe I ever had the original credit agreement and in a blitz of tidying up last year (after DMP settled didn't think I'd need the paperwork again) I have shredded all my statements etc.
My account number has 16 digits which reading this thread disqualifies me from CCA recompense? Searching the NRAM site I see it says customers will be contacted but I wonder if a settled DMP account would drop off the radar?
So confused - who can I contact, what further steps can I take to check out both PPI and CCA without going through claims firm?


Very grateful for any help and advice. Thank you.


'Twitty'

IainHL

Twit_Head wrote: »

My account number has 16 digits which reading this thread disqualifies me from CCA recompense?

A 16 digit account number was a Northern Rock unsecured personal loan. They managed to get all the paperwork for them correct (and in fact have now, or are in the process of, selling those off to a couple a third parties).
This NRAM incorrect information on statements and redress of interest relates only to secured loans and unsecured loans attached to a mortgage ("Together" mortgages).

Twit_Head

IainHL wrote: »

A 16 digit account number was a Northern Rock unsecured personal loan. They managed to get all the paperwork for them correct (and in fact have now, or are in the process of, selling those off to a couple a third parties).
This NRAM incorrect information on statements and redress of interest relates only to secured loans and unsecured loans attached to a mortgage ("Together" mortgages).

Ah now it all becomes clear........
Thank you for your fast and concise reply.


'Twitty'

clivejive56

IainHL wrote: »

A 16 digit account number was a Northern Rock unsecured personal loan. They managed to get all the paperwork for them correct (and in fact have now, or are in the process of, selling those off to a couple a third parties).
This NRAM incorrect information on statements and redress of interest relates only to secured loans and unsecured loans attached to a mortgage ("Together" mortgages).

Are you sure about this? How do you know that they managed to get the paperwork right for their unsecured personal loans with 16 digit account numbers?

NRAM either don't know what they are doing or they are deliberately misleading the consumer. You could be doing the same thing unless you have good evidence to back up what you say.

A letter from NRAM merely stating that loan documentation is fully complaint is does not constitute positive proof.

clivejive56

lennonc1 wrote: »

This is what they have done wrong!

The regulations state that the following information will have to be included in each statement. The information is comprehensive. The list is as follows:-

show the dates explaining the period covered by the statement;
give the debtor’s name and address (so far as you know it);
give your name and address (which might be an internet address) and a telephone number. If the debtor has been given details of a particular employee or category of employees, the appropriate telephone number should be given;
the account name and number;
the principal amount of the borrowing provided or to be provided, shown as one figure (it is unclear at the moment in an hp agreement whether this will be the amount financed or the total amount of the credit, including the part-exchange allowance);
the applicable interest rate or rates during the period of the statement, and if they varied, when the variable rates applied. If the interest is pre-computed and rolled up with the principal at the beginning of the credit period (as it will be in hp), then you have to give the interest rate quoted in the original agreement along with a statement explaining how and when interest charges are calculated and applied;
the date the agreement took effect;
the date of the first movement on the account;
the duration or minimum duration of the agreement;
the opening balance at the start of the statement period;
payments made under the agreement during the period and debits to the account during the period;
interest or other charges payable by the debtor which become due on the account during the period, whether or not they relate to that period;
any movements on the account during the period not relating to payments, interest or charges;
the closing balance;
a notice telling the debtor he can settle his agreement early;
a notice warning the debtor that if he pays less than the agreed payment, the debt may take longer to clear and may cost him more;
in hire purchase agreements, a repeat of the hirer’s right of early termination under the halves rule;
a statement about complaints and disputes and the possibility of using the Ombudsman;
where PPI is included with the agreement, they will allow the amount required in respect of the PPI funding to be amalgamated with the main funding (if that is how the agreement is set out) but the debtor is given notice that he can request separate settlement figures for any insurance funding element from the creditor in writing.

Can you please say where you found that text. It is not an exact copy of the Statutory Instrument but more like an opinion of what those regulations actually mean.

If text which you have quoted is correct and will hold up in a Court of law then I believe that thousands more people with unsecured loans with NRAM will be entitled to refund. (yes, I am talking about the ones with 16 digit account numbers!) My case is currently with the Financial Ombudsman!

IainHL

In that case to amplify what I originally said:
From my own experience, and as far as I am aware, they managed to get all the paperwork for them correct (and in fact have now, or are in the process of, selling those off to a couple of third parties).

Perhaps, clivejive56, you would care to enlighten us all as to what you think they got wrong?

foxy02

Hi All,

I have a secured loan and an unsecured loan on top of a mortgage from Northern Rock, how can I check if I'm eligible for this refund?

Many Thanks

IainHL

foxy02 wrote: »

Hi All,

I have a secured loan and an unsecured loan on top of a mortgage from Northern Rock, how can I check if I'm eligible for this refund?

Many Thanks

If you were eligible you should have had it some time ago. Have you moved, or paid off the loan (though I do notice you say "have" rather than "had")? Do you still get correspondence from NRAM (you should get at least an annual statement for each distinct loan)? Was your unsecured loan greater than £25k?


If NRAM cannot contact you then they wouldn't be able to give you redress.

esmerellda

I wonder if anyone who has had loans etc with Northern Rock in the past or who used to work for Northern Rock can give me some insight into their accounting acronyms used on customer accounts records; be much appreciated.

cdad miscellaneous debit
Pac agent payment
PP payment
Woab bad debit write off
uddc payment
Won write on payment
Pacx agent recall
Woff write off