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

Thryth_2

I got my letter but I'm still a little confused as to what exactly the mistake was they have made... UKAR states that certain "letters and statements" are incorrectly worded. Which letters and which statements?

I was also wondering after digging out the paperwork, with regard to precontract information am I correct in stating that they must disclose the following?

• (In case of a running account) credit agreements at intervals of not more than 12 months and minimum repayments.
• What would happen if the debtor failed to meet payments;
• Whether the loan is secured and if so, on what;

I was looking at my precontract information and it does not state any of those the things...

with regard to monthly repayments it just states:

"The amount of each monthly payment shall be such equal (or as nearly equal as possible) amount as is calculated by us, and notified to you from time to time, as will result in the then outstanding balance under this agreement, together with interest at the interest rate (plus ant costs, charges and expenses due being repaid during the loan term)."

It does not say if they loan is secured or otherwise

With regard to not keeping up payments it simply says:

"Missing payments could have severve consequences and make obtaining credit more difficult."

Does this sound right???


With regard to the issue of the tax payer footing the bill, well NRAM still made a profit of £305 Million in the first half of 2012 so the £270 Million shouldn't rally bother the tax payer...

Luisfilipe

Quick question. After digging out all my old statements from Northern Rock it become clear to me that Northern rock only had the opening and closing ammounts reference the secured and unsecured loans there was NO MENTION of the original ammount lent to me and my Partner. Question is would they be in fault for not providing that information up to 2008? Or were the CCA rules different from 2005 up to 2008? Many thanks and good luck to everyone involved in this. Have a good Christmas everyone.

amn_2

Luisfilipe wrote: »

Quick question. After digging out all my old statements from Northern Rock it become clear to me that Northern rock only had the opening and closing ammounts reference the secured and unsecured loans there was NO MENTION of the original ammount lent to me and my Partner. Question is would they be in fault for not providing that information up to 2008? Or were the CCA rules different from 2005 up to 2008? Many thanks and good luck to everyone involved in this. Have a good Christmas everyone.

The rules changed in 2008, prior to that the original amount didn't have to be shown

Luisfilipe

Thank you AMN,so what N-Ram did was just following the old style statements not adjusting to the rule change that took place in 2008. I noticed that on my very last statement N-Ram make a reference to the unsecured loan ammount that was lent to me but no reference was made to that ammount on prior statements from 2008 up to December 2011

BaconandEggs

amn wrote: »

The rules changed in 2008, prior to that the original amount didn't have to be shown

Based on that, posters who redeemed prior to this will not be elligible.

twinksy

hi, i had an unsecured loan with northern rock between 2006 and 2010 this was not linked to a mortgage. I do not have any of the paper work but wondered if i ay be eligble for interest refund? Any advice very gratefully received x

apesxx

It would be bloody fantastic news if we are going to get this refund. we have an NRAM together mortgage since 2006, with an unsecured loan of about £12,000. money is quite tight at mo and the altenator has just gone on my car today so i will be over the moon if we get it my account number is less than 16 digits and my statements have always been opening/closing balance with no reference to original amount.

darlingdaisys

apesxx wrote: »

It would be bloody fantastic news if we are going to get this refund. we have an NRAM together mortgage since 2006, with an unsecured loan of about £12,000. money is quite tight at mo and the altenator has just gone on my car today so i will be over the moon if we get it my account number is less than 16 digits and my statements have always been opening/closing balance with no reference to original amount.

If the money is to be refunded, it will most likely be refunded back to the account! Sorry to burst any bubble! I could also do with the money in my bank instead of off the loan!

lsdav

Anyone no longer with Northern Rock had a letter yet?

amn_2

I've got a bit of a dilemma now. We have recently started overpaying in order to move in the next 12 months or so. Originally we were focusing on the mortgage part as it may offer the possibility to borrow back if the need arises. This is unlikely to be the case (and who says NRAM will agree anyway!) so I'd like to clear the unsecured part now. Obviously the potential interest refund will help in that respect but I have a chunk of cash to make a payment with in January.

Now should I make that off the loan or mortgage? If all the paperwork mistakes haven't been corrected then I would be reducing my interest refunds and essentially costing myself some money until the paperwork is fully compliant.

Hopefully they come up with some solid dates for which period will be refunded before I make the payment!