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

craaaigo

lennonc1 wrote: »

I was thinking could we go elsewhere for a loan to pay of northern rocks unsecured loan within the next 12 weeks then they will have to pay by cheque if loan is cleared!!!! Might be worth looking into! It would only be for the short term as over next year or so I will be selling the house and would then only have mortgage to pay off ad won't b stuck paying the unsecured loan a 15% as it jumps so high in interest, so if u have switched loans you are on a lower rate plus will have the 4k from cca interest payment, do I make sense or am I babbling lol. Thanks

You make an interesting point. If you could find somewhere to take the borrowings that has a lower interest rate than what you're paying now then I dont see why it wouldn't work. If youre on the NRAM SVR then itd be near impossible to find a personal loan at that rate i'd imagine but whats to stop you putting it onto a 0% credit card? Certainly not for everyone and youd have to be very disclipined with your finances but I think it would work if youre savvy enough with money.

Evenfields

lennonc1 wrote: »

I was thinking could we go elsewhere for a loan to pay of northern rocks unsecured loan within the next 12 weeks then they will have to pay by cheque if loan is cleared!!!! Might be worth looking into! It would only be for the short term as over next year or so I will be selling the house and would then only have mortgage to pay off ad won't b stuck paying the unsecured loan a 15% as it jumps so high in interest, so if u have switched loans you are on a lower rate plus will have the 4k from cca interest payment, do I make sense or am I babbling lol. Thanks

The point I was making a little further back was, that in reality as you have paid in your monthly loan payments the contractual interest that they are now having to rebate, then NRAM should be doing just that and paying you directly the money they shouldn't have taken during the period when they didn't comply. Not just customers who have finished paying their loans.

It's only for NRAM's convenience and cashflow that they are saying they will refund it to the loan accounts and therefore off the balance:mad:. It's your money tell NRAM you want a cheque!:T

If they weren't entitled to it, it's YOURS and not NRAM's and it should be your choice as to what you do with YOUR refund. IMHO

mariechrisbulll

Evenfields wrote: »

The point I was making a little further back was, that in reality as you have paid in your monthly loan payments the contractual interest that they are now having to rebate, then NRAM should be doing just that and paying you directly the money they shouldn't have taken during the period when they didn't comply. Not just customers who have finished paying their loans.

It's only for NRAM's convenience and cashflow that they are saying they will refund it to the loan accounts and therefore off the balance:mad:. It's your money tell NRAM you want a cheque!:T

If they weren't entitled to it, it's YOURS and not NRAM's and it should be your choice as to what you do with YOUR refund. IMHO

I fully agree... Petition anyone??lol... I also agree with previous posts surely its more complicated to pay it off the loan?? Ie. loan term etc etc

Evenfields

mariechrisbulll wrote: »

I fully agree... Petition anyone??lol... I also agree with previous posts surely its more complicated to pay it off the loan?? Ie. loan term etc etc

I do think this needs to be addressed by NRAM. They seem to be directing this how THEY want to do it.

A petition a great idea! :T

Get Martin and Money Saving Expert to highlight this. What are NRAM or Northern Rock's customers rights to receive this refund directly back? Come on Martin! :money:

mariechrisbulll

Evenfields wrote: »

I do think this needs to be addressed by NRAM. They seem to be directing this how THEY want to do it.

A petition a great idea! :T

Get Martin and Money Saving Expert to highlight this. What are NRAM or Northern Rock's customers rights to receive this refund directly back? Come on Martin! :money:

I think I'm due £6k ish so here's hoping ;-)

Bebs

darlingdaisys wrote: »

Have you actually been told this by them?

Sorry, I have only just seen this. Yes, I was told by them that all letters have now been sent.

craaaigo

Petitions are ineffective and too easily ignored in my humble opinion.I don't personally want the money direct because its better served paying off my mortgage borrowings and thus saving money in future interest. But I guess I can see why people think they should have the choice. In such cases the way to hurt NRAM far far more than a peititon is to complain - and then most crucially of all is to refer to the Financial Ombudsman if they won't help you because this in turn will cost them money. ie Hit them where it hurts!

mariechrisbulll

craaaigo wrote: »

Petitions are ineffective and too easily ignored in my humble opinion.I don't personally want the money direct because its better served paying off my mortgage borrowings and thus saving money in future interest. But I guess I can see why people think they should have the choice. In such cases the way to hurt NRAM far far more than a peititon is to complain - and then most crucially of all is to refer to the Financial Ombudsman if they won't help you because this in turn will cost them money. ie Hit them where it hurts!

I only want the cash as we are behind on the mortgage part by £800 and the additional would allow us to pay off a loan elsewhere which cripples us each month... One can hope......

Evenfields

craaaigo wrote: »

Petitions are ineffective and too easily ignored in my humble opinion.I don't personally want the money direct because its better served paying off my mortgage borrowings and thus saving money in future interest. But I guess I can see why people think they should have the choice. In such cases the way to hurt NRAM far far more than a peititon is to complain - and then most crucially of all is to refer to the Financial Ombudsman if they won't help you because this in turn will cost them money. ie Hit them where it hurts!

Yes, but perhaps Martin :money: and the Money Saving Expert team or their advisers can look at this (please) and advise people as to what their rights ACTUALLY are to demand their rebate in cash direct to them and not just taken off the balance. Perhaps they can highlight people's rights as it affects so many people. Where does it say that customers don't have a choice and that it must come off the balance other than on NRAM's website and their say so? :mad:

Request to MSE forum team - can you please look at this. Thanks!

gavman99

lennonc1 wrote: »

I was thinking could we go elsewhere for a loan to pay of northern rocks unsecured loan within the next 12 weeks then they will have to pay by cheque if loan is cleared!!!! Might be worth looking into! It would only be for the short term as over next year or so I will be selling the house and would then only have mortgage to pay off ad won't b stuck paying the unsecured loan a 15% as it jumps so high in interest, so if u have switched loans you are on a lower rate plus will have the 4k from cca interest payment, do I make sense or am I babbling lol. Thanks

I'm not interested in getting the cashback (approx £3,500 in my case) but this has raised a very interesting point.

Currently I'm due NRAM £15,500. I pay £161pm at 9.79% and have approx 15 years left to run.

Reducing my balance by £3,500 would leave me with an outstanding balance of approx £12,000. According to the MSE Overpayment calculator, if I keep my monthly payments at £161pm, I'd have the full balance paid off in 10 years.

However If I took out a loan of £12,000 at a lower interest rate, then the debt would be clear a lot quicker than 10 years.

For example, a £12,000 loan from Tesco bank at 5.2%APR with the same monthly payment of £161 means I'd have the debt cleared in 7.5 years as opposed to 10 years sticking with NRAM. Or if I stick to a 10 year term, my monthly payments would drop to £128pm.

So this "refund" of interest charges combined with moving my loan means I could have it cleared in half the time (15 years current potentially down to 7.5).

This is great news !!!