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

natalie_1982

I got a letter today saying that I could be eligable. Nothing more than that to add really, but I guess the ball is well and truly rolling now.

jamesd

Hevs81 wrote: »

It doesn't seem fair that if They have taken money from me that was not owed that I can't have it back !:mad:

They haven't taken money that was not owed. All of the money seems to have been properly correctly calculated interest that was due on the loans.

However, because they didn't include the initial amount borrowed or some other required words, the law says "the debtor shall have no liability to pay any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it". So they are refunding that otherwise properly calculated interest.

Note that the wording is no liability to pay the interest, it doesn't say anything about having to make lower payments. All NRAM is doing with this chosen method is keeping the payments the same and recalculating the capital amount still owed because none of those payments now would have included any interest. Which has the same effect as a refund deducted from the loan balance.

From the wording of the law it appears that those with a closed loan would be due a refund of interest from the day the first statement was provided or due, until the day the loan was closed.

PAUL67

jamesd wrote: »

They haven't taken money that was not owed. All of the money seems to have been properly correctly calculated interest that was due on the loans.

However, because they didn't include the initial amount borrowed or some other required words, the law says "the debtor shall have no liability to pay any sum of interest to the extent calculated by reference to the period of non-compliance or to any part of it". So they are refunding that otherwise properly calculated interest.

Note that the wording is no liability to pay the interest, it doesn't say anything about having to make lower payments. All NRAM is doing with this chosen method is keeping the payments the same and recalculating the capital amount still owed because none of those payments now would have included any interest. Which has the same effect as a refund deducted from the loan balance.

From the wording of the law it appears that those with a closed loan would be due a refund of interest from the day the first statement was provided or due, until the day the loan was closed.

Therfore surely if the monthly payment is to remain the same then the total payments remaining will have to change after refund applied as we are dealing with a fixed term loan of £x per mnth over x mnths. either the monthly repayment is reduced or the term of loan is.

happyhappyhappy123

amn wrote: »

The point I and I think the other poster is trying to make is that Northern Rock didn't force any of us to take a together mortgage. We all chose to borrow more than the houses value on the hope that prices would increase as had been the trend in previous years. This allowed us to purchase a property when we may otherwise not have been able to.

The fact that the market plumetted and many of us are now in negative equity (myself included) is not NR's fault. It's just one of those things that is unfortunate and we now have to deal with. Personally I have had no issues with NR or NRAM so maybe I have a skewed view.

I'm reading through all these comments and I can't believe the amount of people "blaming" Northern Rock or a Mortgage broker for the fact they have this "stupid" mortgage. Why is it when anything bad happens or a situation goes wrong does everyone look to blame someone else instead of taking responsibilty themselves for signing on that dotted line. I totally agree with the above comments as for whoever has a together mortgage must be sitting in a house you would have otherwise not been able to afford but due to these type of mortages, you could!
This country would not be in the mess it is in today if everyone (and I mean everyone from companies, governments etc) took responsibilty for their actions as well as mistakes and learned from them instead of dancing around looking for others to blame.
I can already hear the "compensation" bandwagon starting their rumblings.
As my gran used to say to me "Suck it up and get on with it" and that's what we should all do.

LovesickFerret

Shellybelly.81 wrote: »

HI, I received a letter today to say I could be eligible. I took out an unsecured loan pre 2008 for under £25k... should hear something in 8 wks but will check statements meanwhile... fingers crossed

Hi Shellybelly,
Did you have a mortgage or just an unsecured loan with NR, please?
Thank you.
Jane.

LovesickFerret

davross wrote: »

Has anyone that has moved to another lender or paid off their loan got a letter yet? Is says on the NR website that if you are no longer a NR customer you will get a seperate letter but doesnt specify when.

We had two unsecured loans with NR, one for £10,000 and one for £15,000. We paid both off early at the beginning of 2011 and moved house a couple of months later. All relevant paperwork was disposed of at the beginning of this year!
My husband today spoke to NR. The first person could not find any information about us or either loan and asked for more details from us about the loans. We did our best to find what we could and my husband phoned them back. They said they would investigate it and be in touch in the next few weeks, but gave us no indication as to whether or not we might be eligable!

Treadmill

happyhappyhappy123 wrote: »

I'm reading through all these comments and I can't believe the amount of people "blaming" Northern Rock or a Mortgage broker for the fact they have this "stupid" mortgage. Why is it when anything bad happens or a situation goes wrong does everyone look to blame someone else instead of taking responsibilty themselves for signing on that dotted line. I totally agree with the above comments as for whoever has a together mortgage must be sitting in a house you would have otherwise not been able to afford but due to these type of mortages, you could!
This country would not be in the mess it is in today if everyone (and I mean everyone from companies, governments etc) took responsibilty for their actions as well as mistakes and learned from them instead of dancing around looking for others to blame.
I can already hear the "compensation" bandwagon starting their rumblings.
As my gran used to say to me "Suck it up and get on with it" and that's what we should all do.

Good thing we are not all you then, this is a bank led recession that we are in brought about by the sloppy practices of the banks, Northern Rock being amongst the worst. Big institutions have to have accountability and paying people money that they are entitled to due to the ego driven bad practice of the banks is all part of this, Northern Rock made a mistake and have taken responsibility and borrowers are doing no wrong receiving compensation for these mistakes.

I just hope they learn in future from this.

Treadmill

LovesickFerret wrote: »

We had two unsecured loans with NR, one for £10,000 and one for £15,000. We paid both off early at the beginning of 2011 and moved house a couple of months later. All relevant paperwork was disposed of at the beginning of this year!
My husband today spoke to NR. The first person could not find any information about us or either loan and asked for more details from us about the loans. We did our best to find what we could and my husband phoned them back. They said they would investigate it and be in touch in the next few weeks, but gave us no indication as to whether or not we might be eligable!

These loans will still be on your credit file, including the amounts borrowed and the date they where borrowed and from whom. Might be a good starting point.

cherylypop

I got a letter from nram today saying they week be letting me know if they owe me anything and how much in the next 8 weeks. I've had a together mortgage since 2007. Would be nice to get a little windfall and interesting to see who gets what. The average of £1700 odd would be nice. The letter says they adjust the balance of the loan rather than giving money.

happyhappyhappy123

Treadmill wrote: »

Good thing we are not all you then, this is a bank led recession that we are in brought about by the sloppy practices of the banks, Northern Rock being amongst the worst. Big institutions have to have accountability and paying people money that they are entitled to due to the ego driven bad practice of the banks is all part of this, Northern Rock made a mistake and have taken responsibility and borrowers are doing no wrong receiving compensation for these mistakes.

I just hope they learn in future from this.

No idea what you mean by "good thing we are all not you then"?????

I also think I have said for EVERYONE to take responsibility and I'm pretty sure I also said the banks. Why should anyone be compensated? Compensation is given to make up for some sort of loss or suffering. Nobody has "lost" or "suffered" due to incorrect format of statements. NRAM have specifically said about redress and this is the correct way to rectify this. My point is about the grumblings and general comments about blaming Northern Rock for giving them the mortgage in the 1st place.