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

vivavilla

Well I'm really confused. We've got a mortgage with NRAM but have an additional personal secured loan of £24k. We haven't received any letter from Northern Rock and when I rang to query they just said they were looking into things and it could be up to 8 weeks before things were sorted. Looking at the forum it appears that a lot of people have received at least the first letter so I'm concerned they'll say we are not affected even though the paperwork/statements state personal secured loan and not further advance. Have tried to find clarification of the difference between further advance and personal secured loan but with no luck
Sorry to witter on but wondered if anyone else was in the same position but had received communication?
I have emailed NRAM tonight asking the question so hopefully will receive a reply sooner rather than later!

Bigkev999

i bet that they know who is due money back but they would rather hold out another few months. this seems pointless as it is very likely they will just take the money from any balances anyway.

chips78

Im in the same position as vivavilla and I left NRAM last January, i had a secured loan on top of my mortgage for 23k then when i moved house in 2009 i decreased the loan to 9k. My account number is 5XXXX-XXXXX but havent heard a sausage from NRAM if im definately not eligible then thats fine but its the not knowing thats stressing me out. Is it worth ringing them or are they unable to help with individual cases at the moment.

RedLima

Just wondering for the people that have recieved letters. Does your account number look like 5XXXX-XXXXX? Do you have a Northern Rock Together Mortgage? What information is missing from documentation and statments with regard to CCA?

Any help would be appreciated!!

geeka

Im in the same situation, ive sent a letter to them yesterday so i will see what happens. looking at my statements there an opening balance and a closing balance and i think that is the main issue. ours "may" comply with the CCA BUT mine is all together ie all show as one outstanding balance.
I expect to get nothing so i'll just wait and see. keep on the forum and we can compare notes!!!

vivavilla wrote: »

Well I'm really confused. We've got a mortgage with NRAM but have an additional personal secured loan of £24k. We haven't received any letter from Northern Rock and when I rang to query they just said they were looking into things and it could be up to 8 weeks before things were sorted. Looking at the forum it appears that a lot of people have received at least the first letter so I'm concerned they'll say we are not affected even though the paperwork/statements state personal secured loan and not further advance. Have tried to find clarification of the difference between further advance and personal secured loan but with no luck
Sorry to witter on but wondered if anyone else was in the same position but had received communication?
I have emailed NRAM tonight asking the question so hopefully will receive a reply sooner rather than later!

Kat-and-Milly

Hi Everyone

Do you think we have any leg to stand on to argue (when we eventually get notified) that we should receive these funds by a cheque rather than being taken off the balance (as I still have the account in question they are likely to want to take it off the balance)... I paid over the odds from my current account and so I would like the funds to go back into my current account. Seems only fair? What do you all think??

Kat
(New to this site!)

stornoway_2

RedLima wrote: »

Just wondering for the people that have recieved letters. Does your account number look like 5XXXX-XXXXX? Do you have a Northern Rock Together Mortgage? What information is missing from documentation and statments with regard to CCA?

Any help would be appreciated!!

Yes I have a letter, and yes my acct is in the format you mention. I remortgaged my together mortgage in 2007 but the linked loan is still outstanding. My July statement showed the amount of the original loan (£22k) which was missing from previous statement - I think I,m due a refund from Oct 08 to the date of the Jul 12 stmt.

stornoway_2

Kat-and-Milly wrote: »

Hi Everyone

Do you think we have any leg to stand on to argue (when we eventually get notified) that we should receive these funds by a cheque rather than being taken off the balance (as I still have the account in question they are likely to want to take it off the balance)... I paid over the odds from my current account and so I would like the funds to go back into my current account. Seems only fair? What do you all think??

Kat
(New to this site!)

Personally I think it will be an uphill struggle to get a refund to your c/a but still worth a try. There are other issues too - what happens to credit file if you have missed pymts but in reality none were due. Also should the pay interest on the amount refunded (say at statutory 8%).

fergalator

Hello, I've been monitoring this as I am in the same boat and tonight decided to google 'NRAM redress' and see what online activity over the last week there has been. It looks like the office for National Statistics has added something to their records.

here's a direct lift from the file, I've put in bold the interesting bit.

In December 2012, the Economic Secretary to the Treasury announced that, due to administrative errors, certain customers of Northern Rock Asset Management (NRAM) classified as part of Central Government, had been wrongly charged interest, and were to be compensated. More information is contained in the UKAR press statement. Under the Consumer Credit Act 2008, any letters and statements sent to customers had to comply with certain requirements, prescribed by the Act. If these were missing, then it would not be legal to charge interest. Affected customers are now entitled to redress, and this is being done either through one off compensatory payments, or for those customers who still have outstanding loan balances, NRAM are going to amend the amount of loan outstanding. Regardless of whether a customer has an outstanding loan or not, the compensation / redress being paid by NRAM will be recorded as a D.75 current transfer from Government to households, and for those customers who have outstanding loans, we will record a simultaneous F.4 reduction in the government loan asset / household loan liability.

The file can be downloaded by just searching NRAM redress and use the tools to look at the last week.

My understanding of this is that those of us with loans/mortgages with NRAM will see our balance reduced, those who've cleared it will get the refund. What will be interesting for those of us still with NRAM is to see if they treat this amount as an overpayment - as that will be the only way to access it indirectly, by underpaying, if that's what people want to do.

Cheers

geeka

Just seen this on NRAM site. looks like im out of the running as mine were further advances.!!

"Please note - if you took out a further advance on your mortgage, this type of loan is NOT regulated by the CCA so is not affected by this issue."