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

Reason123

happymoneysaver1 wrote: »

ok folks, got my letter this morning - Ill write down some of the things it says and hopefully it might answer some questions but not all. I've only included some paragraphs so please if you have any other questions, I will check the letter.

"We have now concluded our intial assessment of your loan with the account no xxxxxx xxxxx xx and can confirm it is regulated by the CCA. Our review has highlighted thaty some of the communications sent to you did not comply with all of the requirements presribed by the CCA.

WHAT THIS MEANS FOR YOU
We will send you revised annual statements for your loan account

In addition to this, you are also entilted to redress to reverse the consequences of charging you interest during the period of non compliance.

Your account balance will be reduded by an amount equal to the interest that you where charged over this period. If any default charges were applied to your account during this period, these will also be refunded via the reduction in your loan account balance.

We will send revised statements showing the redress in the next 12 weeks. Any monthly interest payments that you make from now until the point we send you the revised statements will be included in the amount of the redress we apply to your loan account balance.

WHAT IS THE PERIOD OF NON COMPLIANCE?
This will depend on the date at which your agreement was made

If your agreements was made before 1 October 2008, the period of non compliance will have started on 31st Oct 2009

If your agreemement was made on or after the 1 October 2008, the period of non-compliance will have started one year and 30 days after the date of your first drawdown under the agreements (ie. when you first received money)

In either case, the period of non compliance will come to an end when you receive your revised account documentation which meets the requirements of the CCA"

The missus checked again and can confirm we have the same as above..! AWESOME.

davross

I just called NRAM for an update.

I have 2 redeemed loans and haven't got a letter yet. I was told that they sent letters to those with redemmed accounts yesterday (not sure if its only those of us that contacted NRAM) and that we should receive the letter in the next few days but it will just say that they are looking into it and it doesnt state a timeframe for this.

skipaheartbeat

happymoneysaver1 wrote: »

ok folks, got my letter this morning - Ill write down some of the things it says and hopefully it might answer some questions but not all. I've only included some paragraphs so please if you have any other questions, I will check the letter.

"We have now concluded our intial assessment of your loan with the account no xxxxxx xxxxx xx and can confirm it is regulated by the CCA. Our review has highlighted thaty some of the communications sent to you did not comply with all of the requirements presribed by the CCA.

WHAT THIS MEANS FOR YOU
We will send you revised annual statements for your loan account

In addition to this, you are also entilted to redress to reverse the consequences of charging you interest during the period of non compliance.

Your account balance will be reduded by an amount equal to the interest that you where charged over this period. If any default charges were applied to your account during this period, these will also be refunded via the reduction in your loan account balance.

We will send revised statements showing the redress in the next 12 weeks. Any monthly interest payments that you make from now until the point we send you the revised statements will be included in the amount of the redress we apply to your loan account balance.

WHAT IS THE PERIOD OF NON COMPLIANCE?
This will depend on the date at which your agreement was made

If your agreements was made before 1 October 2008, the period of non compliance will have started on 31st Oct 2009

If your agreemement was made on or after the 1 October 2008, the period of non-compliance will have started one year and 30 days after the date of your first drawdown under the agreements (ie. when you first received money)

In either case, the period of non compliance will come to an end when you receive your revised account documentation which meets the requirements of the CCA"

Just found out in 2nd post, am one of the lucky ones!! By my calculations, this is 40 months worth of interest, right? I am pre Oct 2008..:j And does this mean my original loan will reduce by the amount deducted for redress, and therfore future interst payments will reduce?

craaaigo

skipaheartbeat wrote: »

Just found out in 2nd post, am one of the lucky ones!! By my calculations, this is 40 months worth of interest, right? I am pre Oct 2008..:j And does this mean my original loan will reduce by the amount deducted for redress, and therfore future interst payments will reduce?

It certainly does.

craaaigo

Bebs wrote: »

Hi all, I spoke to NR today and they said that all letters have now been sent out, looks like I am not entitled to a refund

Dont give up - it could arrive tomorrow! if you've received the first letter then they will send you a final update either way. They wouldn't just leave you hanging without a response!Doubt my post will have come today cos of weather but still encouraged by todays news on here!

lennonc1

Got my letter today to say i am entitled to redress on my unsecured loan, within the next 12 weeks, however I am slightly dissapointed that they will not entertain the idea of refunding into our bank account as that money was paid by us and its their fault regarding cca statements so would like to know if any legal eagles could tell me if it is worth pushing for as it would no way go to helping us out of negative equity with them. Plus cant be used as an overpayment to then draw back out, so basically most of the term of the loans are worth nothing to be honest so need to know where we the nram customer stand with this as they cant tell me anything when i call!!
Thanks all.

Red82

Looking at my mortgage and loan statements from Oct 09 onwards it looks like we are due £4000 credited to our loan. That would be amazing and one step closer to being debt free! :j

lennonc1

That would be good but would rather it in my bank so I can therefor pay my mortgage with them as now been made redundant and cant really afford to pay. But they would never understand that of course. Lol!!

Glasgow77

I have two loans with nram that both received the redress letter (2 seperate letters) that we all got 8 weeks ago.

Today I received two letters from nram, one identical to the info posted above saying that the assessment was concluded and I would be entitled to redress but they would write to me in 12 weeks to confirm how much and when this may happen.


The second letter stated that nram needed more time to look into the loan (another 12 weeks for this process) to see if I am entitled o redress on this loan.


So I would imagine that if you got a letter 8 weeks ago I would be very surprised if nram did not write to you regarding the outcome at this stage (entitled, not entitled, or need more time to review)


It seems they are being fairly transparent with things now and above board (as I would never have known about this issue in the first place) So I am going to wait the next 12 weeks until I have all the decisions and facts in my hand and then I can decide to agree with or contest the decisions.


Looks like a bit more of a waiting game unfortunately .......

Hopelessly_Hopeful

Red82 wrote: »

Looking at my mortgage and loan statements from Oct 09 onwards it looks like we are due £4000 credited to our loan. That would be amazing and one step closer to being debt free! :j

As far as I know they will only be refunding the loan interest not the mortgage interest.

Sorry

HHx