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

downhiller

£30k loan here as part of their Together mortgage. Just checked my documents and it clearly states its subject to the CCA 1974 so I'm also confused over this apparent £25k threshold

lizards

I did a bit of searching online as regards the "Regulated by the CCA 1974" statement written on a loan for over £25K, but all I could find out was that nobody really seemed to know for sure and nobody was that keen to challenge it (over obviously unrelated matters to this latest development).

I suppose NRAM can't have it both ways - they can't use the powers of the CCA 1974 against customers who have loans over £25K arguing they've signed that agreement, and then get all funny when it's used against them. I suspect for those of us with the bigger loans it could get very complicated. Were our agreements even valid in the first place given we would have been mislead into thinking we had that protection?

Here's an interesting thread: http://www.consumeractiongroup.co.uk/forum/showthread.php?178390-Credit-Agreements-over-25k-Pre-April-2008

downhiller

Hmmm.interesting. this one has legs

amn_2

Well I think this may affect me given their criteria. I have checked old statements and they don't mention the original balance. If my calculations are correct then the interest in the affected period comes to approx 5k!

Trying not to get my hopes up too much but it would be a handy chunk to be knocked off as we are desperate to move and overpaying as much as possible at the minute.

bunnygreen

I think I actually fall into this category! We took out a together loan (boo) in 2005 and I believe that it was for just under 20k. My account number is less than 16 digits. Obviously need to wait for the post man to confirm. I know it sucks for the taxpayer and all that but it would be nice to get a break tbh! Would be nice to reduce some debt with it!

bunnygreen

PS. How would I be able to work out what it might possibly amount to? I don't want to get my hopes up but it is looking promising!

I have always regretted taking out this stupid Together mortage and my husband and I are stuck in our home at the moment waiting to get out of negative equity so it really would help!

_Andy_

opinions4u wrote: »

Suggestion:

If you get this money back, use it to reduce your debts.

Especially if you've got negative equity.

Crazy thinking.

natalie_1982

I'm not sure if I am reading the statements correctly, it's all a but confusing. We took out a Together mortgage May 2007, including an unsecured loan of £20k. On each statement it has a opening and closing balance (which is basically the same as the original loan due to the interest rate) but doesn't specify the original amount exactly. I don't expect anyone else to know anymore really, just thought I would post in case anyone else is thinking the same or can elabourate. I await the post with interest!

downhiller

Just tallied up all my statements. Almost £8k in interest since May 2007! If they reduce my balance by that I'll be doing somersaults!

amn_2

bunnygreen wrote: »

PS. How would I be able to work out what it might possibly amount to? I don't want to get my hopes up but it is looking promising!

I have always regretted taking out this stupid Together mortage and my husband and I are stuck in our home at the moment waiting to get out of negative equity so it really would help!

Not sure if my method is right but I just added up the "Total Charges" section for the unsecured loan on all my statements from the start of 08 till present. This should be the interest charged during that period which I think is what they would refund.

On an approx 15k loan this worked out at about 1100 a year for me so I multiplied that by 4.5 years to arrive at approx 5k. All rough and I could well have it all wrong!