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

downhiller

Bigkev999 wrote: »

do you think this is acceptable?

It doesn't matter what we think, only NRAM could advise you on that.

Thrifty_Pixie

downhiller wrote: »

It doesn't matter what we think, only NRAM could advise you on that.

Agreed. But knowing how these things normally work I'd wager that they'd take it off your balance and still expect you to pay your usual monthly installment, otherwise why not just give you the cash?

Better call NRAM for sure.

geeka

I wrote to them a couple of weeks ago but no response. hhhhmmmm, could it have got lost. should i complain like an earlier poster?

V-J

I've just spoken with NRAM as I'd had a quick response to one email between xmas and New Year, and then nothing to my follow up.

I had an original Together mortgage which I took out with NR in 2001 and redeemed in 2004, and then another Together mortgage in 2004 to date. It should have been a transfer of the original mortgage, but they messed that up, as despite paperwork to say it was repayment, managed to put us on interest only for several years, so the mortgage is now split into secured, unsecured, and secured interest free on the parts which should have been paid off during that period. Note someone's (former NR employee) post about them getting the paperwork wrong, it is worth double checking you have what you thought you signed-up to, and checking the details regularly, as in 2010 (approx 6 years into the mortgage) they started taking payments on the secured part only and forgot to collect the direct debit on the unsecured part!

Because of having had 2 Together mortgages I was querying with them whether only the current one if affected, or the original one too.

Today on the phone NRAM have said the following to me:

They don't have much information
The original 2001 loan is not affected
Only some loans taken out between early 2007 and late 2008 are affected
My current mortgage is not likely to affected as the loan was taken out in 2004
Letters were sent to everyone due to the media coverage
If you aren't affected you won't get another letter
Those who are affected will be contacted in 6 weeks

It's a bit confusing, as on their website they say


Is my mortgage affected by this issue?
The majority of mortgages that were taken out with the former Northern Rock plc are not affected by this issue. However, there are some exceptions:

• Certain types of equity release mortgage are regulated by the CCA. So if you took out a Lifetime mortgage, then you could potentially be impacted by this issue.
• If you took out a Together mortgage that combines a secured loan with an unsecured loan, the unsecured loan element is potentially regulated under the CCA so you could be impacted by this issue.
• If you took out a personal loan that is secured against your property, this type of loan is potentially CCA regulated so you could be affected by this issue.

We sent a letter on 12 Dec 2012 to all existing NRAM customers who we believe could be affected by this issue. This letter explained the errors that have occurred and highlighted the next steps that we will take, where required, to correct the situation.
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.


I'm definitely an exception as I took a Together mortgage with Northern Rock Plc.


Most of the media coverage (including George Osborne in the HoC), and the website implies, that it is to do with the statements sent, not just the original loan agreement.


Based on the new information I'm not expecting anything, but N-RAM need to be working harder on their comms if it is the case it only affects those who only took out the loan during a certain time-frame (2007 - 2008), and it is not just all those who have had statements between 2008 and the end of 2012.


The information I have been given today is also confusing, as point 3 on the letter sent out by NRAM says:


3 What period does this cover

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


If (and it's an optimistic if) the information they have provided by phone today is incorrect, and the problem is related to statements, the part of the CCA 2006 I think* it could relate to came into effect on the 1st October 2008, so if there is any redress it would only go as far back as that.



However, given their history (at least with my mortgages) I suspect they could have had multiple communication problems, both with the issuing of loans, and then later communications to remain compliant with the updated Act.


So, I shall be patient and see if I hear anything in 6 weeks time, but thought people on here might find some of the information useful. (or just more confusing)


*IANAL or in any way connected with financial services

PS As a new user I've had to strip out all the links to the NRAM website and CCA

mhmmhm

Well that puts a damper on things somewhat if it's only for loans taken out between early 2007 and late 2008. Certainly from my perspective! My mortgage was late 2006...

darlingdaisys

I thought it was because there was a problem with the statements not showing the correct amount? We have had people on here saying that their statementd showing that the information was incorrect with together mortgages pre 2006! I personally think they dont know their bum from their elbow anymore!

stornoway_2

V-J wrote: »

I've just spoken with NRAM as I'd had a quick response to one email between xmas and New Year, and then nothing to my follow up.

I had an original Together mortgage which I took out with NR in 2001 and redeemed in 2004, and then another Together mortgage in 2004 to date. It should have been a transfer of the original mortgage, but they messed that up, as despite paperwork to say it was repayment, managed to put us on interest only for several years, so the mortgage is now split into secured, unsecured, and secured interest free on the parts which should have been paid off during that period. Note someone's (former NR employee) post about them getting the paperwork wrong, it is worth double checking you have what you thought you signed-up to, and checking the details regularly, as in 2010 (approx 6 years into the mortgage) they started taking payments on the secured part only and forgot to collect the direct debit on the unsecured part!

Because of having had 2 Together mortgages I was querying with them whether only the current one if affected, or the original one too.

Today on the phone NRAM have said the following to me:

They don't have much information
The original 2001 loan is not affected
Only some loans taken out between early 2007 and late 2008 are affected
My current mortgage is not likely to affected as the loan was taken out in 2004
Letters were sent to everyone due to the media coverage
If you aren't affected you won't get another letter
Those who are affected will be contacted in 6 weeks

It's a bit confusing, as on their website they say


Is my mortgage affected by this issue?
The majority of mortgages that were taken out with the former Northern Rock plc are not affected by this issue. However, there are some exceptions:

• Certain types of equity release mortgage are regulated by the CCA. So if you took out a Lifetime mortgage, then you could potentially be impacted by this issue.
• If you took out a Together mortgage that combines a secured loan with an unsecured loan, the unsecured loan element is potentially regulated under the CCA so you could be impacted by this issue.
• If you took out a personal loan that is secured against your property, this type of loan is potentially CCA regulated so you could be affected by this issue.

We sent a letter on 12 Dec 2012 to all existing NRAM customers who we believe could be affected by this issue. This letter explained the errors that have occurred and highlighted the next steps that we will take, where required, to correct the situation.
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.


I'm definitely an exception as I took a Together mortgage with Northern Rock Plc.


Most of the media coverage (including George Osborne in the HoC), and the website implies, that it is to do with the statements sent, not just the original loan agreement.


Based on the new information I'm not expecting anything, but N-RAM need to be working harder on their comms if it is the case it only affects those who only took out the loan during a certain time-frame (2007 - 2008), and it is not just all those who have had statements between 2008 and the end of 2012.


The information I have been given today is also confusing, as point 3 on the letter sent out by NRAM says:


3 What period does this cover

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


If (and it's an optimistic if) the information they have provided by phone today is incorrect, and the problem is related to statements, the part of the CCA 2006 I think* it could relate to came into effect on the 1st October 2008, so if there is any redress it would only go as far back as that.



However, given their history (at least with my mortgages) I suspect they could have had multiple communication problems, both with the issuing of loans, and then later communications to remain compliant with the updated Act.


So, I shall be patient and see if I hear anything in 6 weeks time, but thought people on here might find some of the information useful. (or just more confusing)


*IANAL or in any way connected with financial services

PS As a new user I've had to strip out all the links to the NRAM website and CCA

I would think that when they talk about only "loans" in 2007 / 2008 being affected they are talking about mortgages and not together personal loans? Is it only a mortgage that you have?

cortway

That's a pain if it is only 2007-2008 as I took mine out in 2006. Mine was a together mortgage.

I do find it hard to believe that they sold 150,000 mortgages between 2007-8. But then again the country did go mad.

V-J

stornoway wrote: »

I would think that when they talk about only "loans" in 2007 / 2008 being affected they are talking about mortgages and not together personal loans? Is it only a mortgage that you have?

The Together product (at the times I took the product), was a secured loan (mortgage) and an unsecured loan. Some people refer to them as mortgages and others as loans...

As stated in my OP, I have secured and unsecured. (and a secured part interest free due to their screw up) - but I consider it all one mortgage.

Other people did take personal loans only with NR - I thought these were the 16 digit ones which had already been determined as not affected by this issue.

V-J

Just to add, on the NRAM communications issues; as I was re-reading the letter sent in December, I noticed the account number listed at the top of the letter is not mine.

Has anyone else seen that?