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

DDYB

Why is the period from 2009? They said previously 2008, although having read the CCAI couldnt see where it even specefied 2008, it says some requiremnets are valid from 2006 and some from 2008, I couldnt see anything to confirn which of the two were applicable here?

Just a word of caution, earlier in the thread some folk have said their statements changed as far back as 2010 and looked CCA compliant so some people might only be entitled to a few months or redress. They have known about this for a long time so recent statenents will surely be CCA compliant.

I got the 2nd letter today too but not expecting anywhere near 40 months of redress - but as I say dont know where the 2009 comes from?

Sancho_panzer

Just received a letter saying I am due a redress of the interest but that it will be taken off my current loan. Does anyone know if you are able to get the cash instead of having your loan reduced?

cherylypop

i. Was going to post that I have received a letter but a few others have done so ready and put lots of details on. Letter says it will redress the balance of our loans, however I dont see why we can't ask to borrow it back. The mortgage is pretTy flexible. We can only ask. PersonAlly im going to enjoy having a 'free' overpayments .....

mcowan77

I had a together mortgage with NR

55k mortgage with a 10k unsecured loan.

I took out 2 further secured loans for 3.5k and 4k all before 2008.

I redeemed the mortgage and 3.5 & 4k loans in jan 12 and moved house.

I got the letter 2day informing me I'm due redress for the 10k loan, but I've never had anything about the secured loans which I've paid off.


Will I be entitled to redress for the as well?...would the letters for them have went to my old address?

Thanks

faz33

I received my first letter but not received the second. Does that mean I'm not included. I have looked at my statements and the most recent statement is set out different than all the previous ones. Meaning I now have the original loan amount opening and closing balance on it. I don't have a 16 digit account number but a 11 digits.

KC10

I received a second letter today too confirming I'm entitled to redress and am about to start the 12 week waiting game to find out how it affects my overall balance.

Like a few others, I too have both an unsecured loan and a secured loan as part of my Together package, but the letter doesn't make clear which of these loans is affected, or if indeed both will be redressed? It states in the letter that if two loans are affected you should receive two letters; I've only had one letter, but surely both loans are affected given I have always received one combined quarterly/annual statement, which is the very document found to be uncompliant? Hopefully this will become clear in due course.

There was a Questions & Answers sheet included today, three of them clarify points a few posters have been wondering about regarding cheques and draw downs so I've typed them out below for reference:

4. What is the impact?
We can confirm that your loan is regulated by the CCA. We will send you revised annual statements for your loan account and in addition you are entitled to redress to reverse the consequences of charging interest during the period of non-compliance.

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

9. Can I have my redress in the form of cash/cheque?
The redress is only available in the form of a credit to your account balance as this reverses the consequences of charging you interest during the period of non-compliance.

11. Can I borrow back and draw down additional funds once the redress has reduced my loan balance?
Borrow backs and draw downs are flexible features that are only permitted on certain types of secured loan.

If you have an unsecured loan that either was linked, or currently still is linked, to a secured 'Together' mortgage, you cannot borrow back or draw down additional funds with this type of loan.

If you have an unsecured loan that is linked to a secured loan as part of a Together mortgage, the balance reduction on your unsecured loan will not create additional funds that you can borrow back or draw down on your secured loan.

If you have a secured loan that is not part of a Together mortgage, your ability to borrow back additional funds will depend on the status of your account at the time you apply for a draw down. However, please note that the interest payments and any default charges that will be deducted from your account balance are not the same as 'overpayments' to your loan account, so you cannot automatically borrow back or draw down this amount.

gavman99

DDYB wrote: »

Why is the period from 2009? They said previously 2008, although having read the CCAI couldnt see where it even specefied 2008, it says some requiremnets are valid from 2006 and some from 2008, I couldnt see anything to confirn which of the two were applicable here?

Just a word of caution, earlier in the thread some folk have said their statements changed as far back as 2010 and looked CCA compliant so some people might only be entitled to a few months or redress. They have known about this for a long time so recent statenents will surely be CCA compliant.

I got the 2nd letter today too but not expecting anywhere near 40 months of redress - but as I say dont know where the 2009 comes from?

I too am really confused by the date involved.

1. What exactly happened in 2008 with regards to CCA regulations that suddenly meant NRAM statements were now considered to be in breach ?

2. Why is the non compliant period start date 13 months after agreement start dates ? I can only assume that CCA regulations state that lenders are legally only supposed to send 1 statement a year, and the fact that NRAM send these quarterly off their own backs rather than annually doesn't mean a thing.

3. What exactly was missing in the statements that makes them non compliant ? I forgot the exact date but my statements changed around approx 2008/9 where they would only display the closing balance for that quarter, but then they changed to display both the opening balance and the closing balance for that quarter. Incidentally, I did receive the letter yesterday saying that my unsecured loan (part of Together mortgage) was impacted by this and I am entitled to redress.

4. Is it the fact that the statements never included the original loan amount ? If thats the case, then surely statements pre 2008 are also impacted if they also never included the original loan amount ? I guess the answer to question 1 may deal with this.

It seems a lot of people are asking similar questions. Would be good to get a MSE FAQ article on this subject.

Thanks, Gav.

craaaigo

DDYB wrote: »

Why is the period from 2009? They said previously 2008, although having read the CCAI couldnt see where it even specefied 2008, it says some requiremnets are valid from 2006 and some from 2008, I couldnt see anything to confirn which of the two were applicable here?

Just a word of caution, earlier in the thread some folk have said their statements changed as far back as 2010 and looked CCA compliant so some people might only be entitled to a few months or redress. They have known about this for a long time so recent statenents will surely be CCA compliant.

I got the 2nd letter today too but not expecting anywhere near 40 months of redress - but as I say dont know where the 2009 comes from?

I can only presume that NRAM must have been entitled to a grace period of 12 months to write to all clients and notify them of the changes. This of course didn't happen and so the period of non compliance would only start at the point at which this grace period expired?For the long standing/pre 2008 loans then its undisputable that theres 40 months interest coming back so I dont know why you wouldn't expect that much unless you took out the loan post 2008.

darlingdaisys

KC10 wrote: »

I received a second letter today too confirming I'm entitled to redress and am about to start the 12 week waiting game to find out how it affects my overall balance.

Like a few others, I too have both an unsecured loan and a secured loan as part of my Together package, but the letter doesn't make clear which of these loans is affected, or if indeed both will be redressed? It states in the letter that if two loans are affected you should receive two letters; I've only had one letter, but surely both loans are affected given I have always received one combined quarterly/annual statement, which is the very document found to be uncompliant? Hopefully this will become clear in due course.

There was a Questions & Answers sheet included today, three of them clarify points a few posters have been wondering about regarding cheques and draw downs so I've typed them out below for reference:

4. What is the impact?
We can confirm that your loan is regulated by the CCA. We will send you revised annual statements for your loan account and in addition you are entitled to redress to reverse the consequences of charging interest during the period of non-compliance.

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

9. Can I have my redress in the form of cash/cheque?
The redress is only available in the form of a credit to your account balance as this reverses the consequences of charging you interest during the period of non-compliance.

11. Can I borrow back and draw down additional funds once the redress has reduced my loan balance?
Borrow backs and draw downs are flexible features that are only permitted on certain types of secured loan.

If you have an unsecured loan that either was linked, or currently still is linked, to a secured 'Together' mortgage, you cannot borrow back or draw down additional funds with this type of loan.

If you have an unsecured loan that is linked to a secured loan as part of a Together mortgage, the balance reduction on your unsecured loan will not create additional funds that you can borrow back or draw down on your secured loan.

If you have a secured loan that is not part of a Together mortgage, your ability to borrow back additional funds will depend on the status of your account at the time you apply for a draw down. However, please note that the interest payments and any default charges that will be deducted from your account balance are not the same as 'overpayments' to your loan account, so you cannot automatically borrow back or draw down this amount.

I thought the unsecured element of the Together mortgage was eligible to withdraw overpayments? Seems like they are making up their own rules now as they go along!

Reason123

You can only withdraw from overpayments on the mortgage not the loan. A redress is not an overpayment.
You will only be getting a cheque if you have paid the loan off already or close to paying off and you will receive the remainder.

One thing I picked up on was in the 2nd letter we have been advised the redress will continue until we get our updated statement. Which sounds like will be another 12 weeks. We will be getting our interest back until that date. So about about another £300 back redress..

They seem to be taking their time allowing the cash owed to build up?
Someone said a few pages ago that it sounded like a government conspiracy? A conspiracy for the worst affected within this government owned bank to give each a helping hand? An intentional fault.. As the sooner NRAM customers pay back in full / or build enough equity to re-mortgage elsewhere the better?
I dont mind this kind of conspiracy..
Ive calculated il get back over £4000