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

amn_2

Missy_Moo wrote: »

I think I am right in saying the following...

The mistake they made is every time they sent a statement they had to show 3 things. 1. The total amount originally borrowed. 2. The opening balance for the statement period and 3. The closing amount for the period.

Northern Rock only showed the opening balance and the closing balance of the loan. The original amount borrowed seems to have been missed off.

We have a loan with Northern Rock, the original amount we took was 24K in May 2008. We received a letter this morning from them. I have been and looked at the statements and they only show the opening/closing balance, but from around April 2011 I can see the original amount borrowed on the statements.

We will be interested to see the outcome, even if it is taken off the balance and not actually paid to us that is fine with us as we really want this loan to be paid off

I've just checked back through my paperwork after your comment about the original balance appearing in April 2011. I hadn't noticed before but my statement from June 2012 (covering Nov 2011 - Jun 2012) shows the original amount. The previous statement to that does not. SO I guess that means the interest may only be refunded up until June 2012 in my case.

amn_2

Reading the northern rock letter again the balance was only one part of it as it says "certain paragraphs of mandatory wording were written incorrectly" as well. I guess it depends on whether the format change of the statements also corrected this mandatory wording. I guess we'll know in 8 weeks

tomt

I'm most likely one of those affected, with a Together mortgage from 2006, under 25k unsecured part.

Just thinking aloud - if they reduce the balance by the amount of interest that was overpaid, then my product (I think all Together ones are the same) which is fully flexible will allow me to drawdown on any overpayments (or take payment holidays) as long as I pass an affordability test (usual stuff - how much do you earn, your outgoings, balances of other debts etc).

*Technically* I have overpaid by (insert sum awarded) so surely they won't put up a fight to stop me utilising that money in some way?

happymoneysaver1

I've received my letter this morning and After scanning through it this morning I've just sat down to re-read it. Has anyone else noticed the bit on the back questions and answers......

Q3. what period does this cover

"Our review of customer communications covers all documentation that has been sent to you since you first took out the loan, regardless of your specific start date"

It is maybe a longer period than the 2008-2012 already mentioned?

Heathyboy

I have a Northern rock/ NRAM mortgage along with 2 secured loans dating backing to 2007. My statements have not got the Original amount on the mortgage or the two loans. It also states that they are all FSA regulated. Does this mean they are not CCA regulated?
I also thought after reading articles that statements should also have the original amounts borrowed by law?

Happytogetdebtfree

I've received our letter this morning. I haven't a clue what it means with regards to monetary value but anythings good if it reduces the loan outstanding. Roll on 8 weeks x

Hopelessly_Hopeful

I got my Northern Rock letter today re my current unsecured loan saying I may have been affected, they will let me know in 8 weeks time etc.

Reading the Q&A I wonder if I will also be eligible for a loan I had 2003 -2006. Will approach them by letter. If you dont ask and all that.

Fingers crossed. Great thought to thinking of being able to save a few weeks or months of the end of the mortgage.

HHx

geeka

I haven't had one yet, hope its the fact I live in the sticks might be the reason why..........

Getting_By_2

I took out an unsecured loan of £6000 in 2007 and paid it off a year ago.

Will I get any refund?

edit - I have a 16 digit account code. No refund for me

PAUL67

I received my letter yesterday and told they we will contact me within 8 weeks with further info.

In the letter it states any redress will be credited to my account. Does this mean it will be treated as an overpayment on the account therefore available under the borrow back overpayments scheme. I only ask because to be honest if any redress was paid in cash i would prefer to allocate it to other debt with a higher interest rate. I know that the scheme is still in place with NRAM although I am unsure if that is only available on the mortgage part of the loan or whether it is any part of the together mortgage/loan.

Anybody with any ideas?