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

natalie_1982

Bigkev999 wrote: »

Tick Tock Come on Northern Rock Pull Finger!

Ha ha :rotfl: I know it's all gone remarkably quiet.... Not a whisper from them since the announcement before Christmas, even the calls and website don't appear to have up to date information. Am watching this thread with interest, I think the deadline for 8 weeks from the letter I received is around 8th Feb.

mhmmhm

Yep - very quiet. I phoned them this morning about something else - there wasn't a mental queue so it seems to have all gone quiet from all directions. I didn't bother to ask about this topic - I figured I wouldn't get an answer I'd be satisfied with, and that I'd be better off just wait for a letter (in about 2.5 weeks time!)

marksta

We're in the same boat. Took out a mortgage for £106k topped up with a £17k unsecured loan in 2006, and have received "the letter" before Christmas so fingers crossed

If we did qualify for a refund, ideally a cheque would be amazing as it would shave a good three months off our debt free target of November 2013, but a balance correction is better than a kick in the proverbials!

A question: Would a balance correction result in a slightly lower monthly repayment or a reduced payment term?

kazonuk

Hi everyone,

I have read through 14 or so pages of this thread but I don't believe any ex-NRAM customers have received a letter yet?

I took out a Together Mortgage in 2006 for £156,000, £133,200 as the secured loan and £22,800 as an unsecured loan.

I paid this off every month until August 2012 when I re-mortgaged and went to a different lender.

Looking at the NRAM site and what I've read here I 100% believe I am due the interest from Oct 2008 - July 2012 refunded (from the unsecured loan), but as yet I haven't received any sort of letter from NRAM (I haven't moved).

I have resisted calling them but I must admit my patience is starting to wear a bit thin.

I appreciate that existing customers should be dealt with but most of these people seem to have been contacted in mid December 2012 and it's now nearing the end of January so I thought the ex-NRAM customers would have been due to have been contacted by now?

Has any ex-NRAM customers been contacted?

Thanks for any advice

Mr_Guy

I don't think any former customers have had anything yet. I have had a response to my complaint merely asking me to hang on - a holding letter so to speak. Overall the communications are very poor.

kazonuk

Mr_Guy wrote: »

I don't think any former customers have had anything yet. I have had a response to my complaint merely asking me to hang on - a holding letter so to speak. Overall the communications are very poor.

Thanks for the reply Mr Guy, I have found your original post and I think I will write NRAM a letter, and yes 100% agree that the communication from them has been terrible.

I know a friend in a similar situation (ex-NRAM) and he has called them, they did take his name/address etc and said they would be in contact in due course but sounds like no one really knows when etc?

drussmonkey

I wouldn't be too surprised. My recent complaint to NRAM took a little more than 8 weeks to be answered. The answer was eventually quite capable but the lead time on it leaves much to be desired.

picardygirl

We are ex NRAM customers and from NRAM's web site looks like we should qualify too .... but have yet to hear anything from them, we havent moved addresses either!

We had mortgage with a secured loan (not additional borrowing) which was fully paid off in October 2010 .... so we should qualify for interest payments back for approx 2 years .... still waiting for correspondence from them though

kazonuk

picardygirl wrote: »

We are ex NRAM customers and from NRAM's web site looks like we should qualify too .... but have yet to hear anything from them, we havent moved addresses either!

We had mortgage with a secured loan (not additional borrowing) which was fully paid off in October 2010 .... so we should qualify for interest payments back for approx 2 years .... still waiting for correspondence from them though

One of my friends (mentioned in an earlier post) who is also ex-NRAM got the following sent to him today:

---

Thank you for your email following the recent announcement regarding loans that are regulated by the Consumer Credit Act (CCA).

At this time we are not able to give you any further information about the situation.
We are currently undertaking a thorough review of all documentation sent to customers who hold loans that are regulated by the Consumer Credit Act (CCA).
Once we fully understand the situation, in terms of who is affected and in what way, we will write to those customers with an update. We will do this in the next eight weeks.

In the meantime, our website (NRAM website) will be updated regularly with all the latest information for our existing and redeemed customers. (NRAM website)

Please note: if you hold an unsecured personal loan with a 16-digit account number, we can confirm you are NOT affected by this issue

---

So I have checked and I definitely do not have a 16-digit account number, so I guess we just have to sit back and be patient :mad:

fergalator

Hello again,

So in my usual internet search for information I've found the latest Government update on finances references the NRAM refund/redress situation. It's most likely that they will have the most upto date information as it's part of the public finances.... Here's a cut and paste of the text....

On 11 December 2011, the Economic Secretary to the Treasury announced that Northern Rock Asset Management (NRAM) would be refunding interest payments to some customers. The refunds are being made because of failure by NRAM to comply with all the requirements for loan documentation under the Consumer Credit Act 2008. The UK Asset Resolution (UKAR – the holding company which manages NRAM) have stated that they will be refunding the interest payments made by affected customers over the period that their documentation was not compliant. They estimate that the total cost of this action will be of the order of £270 million. More information can be found on the UKAR website. When the compensation payments take place they will be recorded, under National Accounts rules, as current transfers to the private sector, which means that they will increase the public sector current budget deficit and the public sector net borrowing. As most of the payments will be used to reduce the loan balances of NRAM customers there will also be a simultaneous reduction in public sector loan assets.

This is confirmed on the UKAR website. So it does seem that balances will be reduced rather then cheques sent out. Also interesting to note that the Office of National Statistics (ONS) can't get a date right in their communications! If you want to find this yourself then simply google NRAM refund and look for the link starting ONS