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

faz33

Do we get to charge Nram interest on this redress. ?

fergalator

mariechrisbulll wrote: »

Hey all..

We took out a unsecured Loan in oct 2007 . £25,000 a 7.29% I used


And typed in £25,000 over 35yeats (420 months) and it said I was pying Aprox £150 a mth interest so am I right in thinking I'm owed from oct 2008? I reckon I'm owed £7k+ ?

Am I right ?

Amy

Hi Amy,

Not fully, each year the amount will decrease as you pay more off the loan amount and less off the interest. Also, they are saying that they will repay from 2009 (Oct) to up to 12 weeks from now. So that's the window of the redress.

You can get a better approximation if you look at your statements - get the ones from Oct 09 and look on the Unsecured loan amount and then add together each amount ie for me it's about 300 a quarter on that side paid as interest.

Cheers

F

Scj2008

Does anyone know why it's from October 2009?

apesxx

we have also got the letter today saying we are entitled to redress It would have been nice to have it in my hand but as soon as the credit card is payed off were guna make a start on paying the loan off so that we can re-mortgage elsewhere, so the balance correction will still help towards that.

PAUL67

mariechrisbulll wrote: »

Hey all..

We took out a unsecured Loan in oct 2007 . £25,000 a 7.29% I used

http://money.guardian.co.uk/calculator/form/0,,603119,00.html

And typed in £25,000 over 35yeats (420 months) and it said I was pying Aprox £150 a mth interest so am I right in thinking I'm owed from oct 2008? I reckon I'm owed £7k+ ?

Am I right ?

Amy

Based on the figures you supplied you should receive a credit of approx £6100 from Oct 2009 to Feb 2013. Although your interest does reduce over time based on the term of your loan you are still paying approx £145 a month interest alone.

Therefore as a rough guide your outstanding balance should be reduced to approx £17800 and assuming you continue paying the same monthly repayment and the interest rate stays as is you would repay this loan in 15 yrs rather than the remaining 29 yrs as it would have been.

anthonymucker

I finally recieved my letter today stating it does affect me . That's the best news u have had all year worked out I am due at least £4500 that's with my interest rate changing last July as well .

shaney1981

I am with NRAM and have received my second letter saying I am entitled to redress. I am currently in arrears on my mortgage due to both my partner and I being long term sick at different times this year... I think I am reasonably figure savvy but would the redress be used to pay the arrears first and then any outstanding used to adjust the balance on my unsecured loan. From what I understand the balance will be reduced on a standard account reducing the term of the loan. I obviously would prefer my arrears to be cleared and would assume NRAM would too...

mariechrisbulll

shaney1981 wrote: »

I am with NRAM and have received my second letter saying I am entitled to redress. I am currently in arrears on my mortgage due to both my partner and I being long term sick at different times this year... I think I am reasonably figure savvy but would the redress be used to pay the arrears first and then any outstanding used to adjust the balance on my unsecured loan. From what I understand the balance will be reduced on a standard account reducing the term of the loan. I obviously would prefer my arrears to be cleared and would assume NRAM would too...

I am kind of in same boat we r slightly behind due to redundancy 2 years ago.. I'm hoping same ;-)

mariechrisbulll

PAUL67 wrote: »

Based on the figures you supplied you should receive a credit of approx £6100 from Oct 2009 to Feb 2013. Although your interest does reduce over time based on the term of your loan you are still paying approx £145 a month interest alone.

Therefore as a rough guide your outstanding balance should be reduced to approx £17800 and assuming you continue paying the same monthly repayment and the interest rate stays as is you would repay this loan in 15 yrs rather than the remaining 29 yrs as it would have been.

I thought that too.. I aren't sure on the rate.. The mortgage dropped to their variable in oct 2012 as we were tied for 5 yrs I aren't sure if the unsecured bit changed too?

jonpeat

We got our letter today saying we are due a redress. We took out a 24,000 loan over 35 years so I think we may be due a nice chunk. I had in my head it was going to be £2000 but after reading above it maybe about 5000. That will make my mortgage look a lot nicer. I'm so happy