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

amn_2

We got the second letter today so I'm pleased to know that we are due the refund!

Bon33 wrote: »

Kazonuk - why October 31st 2009....is that when you took the loan out?

The changes came into effect at the end of October 2008. I think I recall reading that the wording and balances had to be shown on an annual statement so my guess is that the last compliant statement was issued in October 2008 so the first annual statement that didn't comply would be 1 year later in October 2009.

This presumably would tie in with loans after Oct 2008 being 30 days after completion as this would tie in with receiving the opening statement.

amn_2

Julie211077 wrote: »

Received a letter today which states. We will send you revised annual statements for your loan,which was 12,500. In addition to this you are also entitled to a redress to reverse the consequences of charging you interest during the period of non compliance. Can somebody please translate this into plain English. I understand the loan amount will be revised,does the redress mean that we will also be given back a cash amount for the interest charged in the period of non-compliance?. If this is the case,will it be sent automatically or will we have to make a claim for this money?. The wording used in the letter is difficult to rake down,and they have stated that this matter should be resolved within the next 12 weeks. Advice on this matter is much appreciated. Thanks

They will reduce the outstanding balance of your loan by the amount of interest you were charged between October 2009 until when you receive the new statements. At a rough guess I would imagine your loan balance would be reduced by around 1.5-2k for a 12.5k loan but obviously that depends on when you took your loan out, your interest rate and when they finally resolve the matter.

Unfortunately you wont be getting a cheque unless you loan is cleared already or the correction leaves you with a positive balance.

jonpeat

No second letter here yet. I am pretty sure that I should be getting some redress so I will wait until the end of the week then give them a call.

MikeMouse

amn wrote: »

They will reduce the outstanding balance of your loan by the amount of interest you were charged between October 2009 until when you receive the new statements. At a rough guess I would imagine your loan balance would be reduced by around 1.5-2k for a 12.5k loan but obviously that depends on when you took your loan out, your interest rate and when they finally resolve the matter.

Unfortunately you wont be getting a cheque unless you loan is cleared already or the correction leaves you with a positive balance.

My loan was 12.5K as well. I checked through my statements and I work it out between 1.5 & 2K as well - closer to 2K I think.

I just need the letter but based on everything I have read I am pretty sure I am due the credit ...... fingers crossed!!!

skilling

i borrowed a unsecured loan of £24400 back in 2007 and the rate was 6.65 up until jan 2009 when my fixed rated together mortgage ended, looking at my agreement, it then went down to standard varible rate of 4.78 and it has stayed this rate since jan 2009 till now.

i borrwed it over 35 years, and at the beginning looking at statements i was paying between £300-£550 in intrest alone every 4 months, so im guessing if its paid back on intrest im going to get a nice chunk of my mortgage.

anyone abit smarter be able to work it out roughly what we might get back?

many thanks

pantherchick

Yes we too had the 12 week letter, but have heard nothing more. i await with antisipation. it would come at a good time for me.. fingers crossed

dsw8

So I am still awaiting my 2nd ltr. Got anxious called nram. Adviser told of a staggered release of ltrs over course of the week. Apparently 100k customers affected so understandable its taking time.
I am wondering is nram in a position to negotiate a deal with customers on unsecured debt?
I could remortgage elsewhere if nram took a wee hit. Afterall they are in business of offloading the bad mortgages asap? I could secure a loan to do it but would require 2-4k over and above the redress to do it. Has anyone else tried to negotiate a settlement with them?

daisymay2008

got second letter today saying they are still conducting a thorough investigation and will take more time blah blah

we are an ex customer so maybe guessing they will sort existing customers first which makes sense i suppose

AngryDog

Got the first letter this week.

Here's hoping! Though it may be a slight problem as the mortgage was in my and my ex fiancee's name, and we have absolutely nothing to do with each other now. I paid the mortgage myself, especially as the reported period was when i was no longer with her, but Northern Rock wouldnt let remove her from the mortgage, and there was no point remortgaging as the house was up for sale.

alamaya

I got my second letter today saying we are due the interest back. Im so chuffed. After a crap 3 months this has right cheered me up