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

Hopelessly_Hopeful

Has anyone since this link before or is it new?

http://www.nram.co.uk/en/customers/cca-loans.aspx

HHx

amn_2

That page has been up since the news was announced. It has been updated a couple of times since so it's worth keeping an eye on

kimdegsidash

I think Craaaigo has got it exaclty right. Anyone who is imagining being able to pay off other debt with this "windfall" is going to be disappointed I'm afraid. I too had a letter in December and my only expectation is that it will reduce my overall debt to NRAM. Sorry to disappoint all the dreamers out there.

craaaigo wrote: »

Unfortunately for a few posters above I don't believe that any payment would be classed as an 'overpayment', and thus you wouldn't be able to withdraw the money back out of the loan. It will be classed as a correction of a charge that shouldn't have been legally made in the first place.

Similarly there's no way at all that NRAM would refund this money to any customers with a live account in the form of a cheque because its not in their interests to do so.

The only reason that NRAM exist and only purpose that they serve is to get back everyones money for the government as quickly as possible. Hence the fact that they don't offer new mortgages, or further advances and that they have retained a pretty sensible SVR.

I realise that you may have the best of intentions with any refunded money and would like to pay back more crippling debts but if NRAM are going to take such a big financial hit on this (and they undoubtedly are) then they're going to at least make sure that this money pays back debts owed to them, as opposed to other debtors (or even a new car or holiday in some customers cases!)

And I'm still waiting to hear back too... The quoted 8 weeks is a very standard timescale that financial companies are given to deal with when looking at investigations & complaints about their products. Unfortunately we're not actually guaranteed a final response within the 8 weeks and may just receive an update or holding response.... That said, its not in NRAMs interests to let this drag on because its only increasing the amount of interest that will be due to be refunded, so we should hopefully hear something soon.

natalie_1982

kimdegsidash wrote: »

I think Craaaigo has got it exaclty right. Anyone who is imagining being able to pay off other debt with this "windfall" is going to be disappointed I'm afraid. I too had a letter in December and my only expectation is that it will reduce my overall debt to NRAM. Sorry to disappoint all the dreamers out there.

I'm not a 'dreamer' I got the same letter you did, I realise that any payment will be used to reduce my overall balance but regardless of where the money comes from, there will be more 'credit' in my mortgage than anticipated. Currently, any amount that is over and above what is expected to be paid is classed as an overpayment. Any reward will reduce the loan, but it won't change the amount I originally borrowed and as such will put me ahead in terms of how much I will have reduced the loan by and how much they anticipated I would have reduced it by this point had they not issued the refund. Not dreaming, merely interested in how they will explain around it. I think we could have a good case for getting the monies issued direct to chosen debtors, in the same way that loan companies do if you get a loan to consolidate debts - they issue the cheques made payable for the amount owing to your debtors.

debi15

When is the 8 weeks up, do most people think it will be extended again or do u think there will be some sort of offer put to us x

kimdegsidash

As much as I would love to have a large overpayment available to withdraw on my mortgage account, the likelihood is that NRAM will apply the compensation as a reduction against our outstanding mortgage balance. This is unlikely to show as an overpayment.

The good news is that going forward we will have lower interest charges because the interest is calculated on a lower overall total borrowed. Therefore, if you continue to make repayments at the level you are doing now, you will build up an overpayment against which you can take a repayment holiday at some point.

The other good news is that the total LTV ratio should improve for a lot of us, therefore making it potentially easier to get a mortgage elsewhere.

If NRAM send us all cheques I shall happily eat my proverbial hat.

Cknocker

agree that Northern Rock are highly unlikely to issue cheques for this HOWEVER -
The Together mortgages are fully flexible mortgages, if a payment of £2500 is made on the account, that will take a a large amount off the term of the mortgage (Most people affected are only 6 years into the mortgage, as a result this will possibly take 2-3 years off the term), I can't see any reason why NRAM would refuse a payment holiday in this scenario.

helpneededprettyquick

Hi I had an unsecured loan for £20,000.00 which I took out 2007 I only ever receive statement for 6 months and they only have minimal info on , I was lead to believe if regulated by the consumer credit act 1974 they have to give you the initial amount borrowed and interest rates as well as opening and closing balance is this correct ? By the way I have a 16 digit account number which they say doesnt count for any redress and is correct ... I did complain and they acted very quickly saying they had checked and my acount had been handled correctly .. just wanted to double check ? thanks

mr_j_bravo

I had two loans one for £22500 and one for £4500 which i took out in 2006. I received the letter in December saying that i may be affected.

I rung NRAM this morning and they stated that letters would be sent out next week.

They stated that some people would be getting account adjustments,some wouldnt and some they hadnt decided on.

Can anyone work out what they mean by this??

im just a bit concerned that i may fall into the 'not getting an adjustment category!!'

I'd imagine that the ones they hadnt decided on may be the loans for over 25k where it all appears 'a bit up in the air'.

Can anyone work out as to why the some will be getting the adjustments and some not?
Any help would be greatly appreciated.

Many Thanks

mhmmhm

Well, that's more information than they've given out before... will see what lands on the doormat next week then!

I guess we're not exactly clear on who was and wasn't sent a letter in the previous round - and without knowing that it's difficult to think about reasons why people would not be eligible for any sort of refund. Still hoping I'm in the refund group!!