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

cot1198

As I undertand it because of NRAM's mistake under law they are not allowed to charge interest for the period stated. People with loans who paid interest in that period are entitled to the interset back. I think they should be allowed to decide for themselves how they get it back.

Sillysausageuk

I'm still waiting for my second letter! Called again today (called last monday) but said I had to wait til next monday before assuming it wasn't coming. Grrr! For epodes info the guy told me today that all records before 2010 are only on paper and not on a computer system! No wonder its taking so long.

Anyone else notice a different account number on their redress letters than on their statements or is it just me?

oscar2010

I have contacted NRAM and they have confirmed It appears i am entitled to some redress as my loan was for 22k, I have moved address so have not received the letter, do i need to formally confirm anything back to them, or will the redress happen automatically and my balance adjusted accordingly.

would really appreciate some views on this

cot1198

oscar2010 wrote: »

I have contacted NRAM and they have confirmed It appears i am entitled to some redress as my loan was for 22k, I have moved address so have not received the letter, do i need to formally confirm anything back to them, or will the redress happen automatically and my balance adjusted accordingly.

would really appreciate some views on this

They will probably take the redress off your balance anyway, but I would still let them have your new address just to be sure.

lennonc1

This is what they have done wrong!

The regulations state that the following information will have to be included in each statement. The information is comprehensive. The list is as follows:-

show the dates explaining the period covered by the statement;
give the debtor’s name and address (so far as you know it);
give your name and address (which might be an internet address) and a telephone number. If the debtor has been given details of a particular employee or category of employees, the appropriate telephone number should be given;
the account name and number;
the principal amount of the borrowing provided or to be provided, shown as one figure (it is unclear at the moment in an hp agreement whether this will be the amount financed or the total amount of the credit, including the part-exchange allowance);
the applicable interest rate or rates during the period of the statement, and if they varied, when the variable rates applied. If the interest is pre-computed and rolled up with the principal at the beginning of the credit period (as it will be in hp), then you have to give the interest rate quoted in the original agreement along with a statement explaining how and when interest charges are calculated and applied;
the date the agreement took effect;
the date of the first movement on the account;
the duration or minimum duration of the agreement;
the opening balance at the start of the statement period;
payments made under the agreement during the period and debits to the account during the period;
interest or other charges payable by the debtor which become due on the account during the period, whether or not they relate to that period;
any movements on the account during the period not relating to payments, interest or charges;
the closing balance;
a notice telling the debtor he can settle his agreement early;
a notice warning the debtor that if he pays less than the agreed payment, the debt may take longer to clear and may cost him more;
in hire purchase agreements, a repeat of the hirer’s right of early termination under the halves rule;
a statement about complaints and disputes and the possibility of using the Ombudsman;
where PPI is included with the agreement, they will allow the amount required in respect of the PPI funding to be amalgamated with the main funding (if that is how the agreement is set out) but the debtor is given notice that he can request separate settlement figures for any insurance funding element from the creditor in writing.

lennonc1

As they have not provided this they are non compliant with the cca, therefore they cannot charge interest during this period making the loan unenforcable, I am currently in arrears now with my unsecured loan as I was made redundant before Xmas so was struggling but if it came to court they would agree it was unenforcable, I have never been in arrears before and I will pay off now as back to work but really think we should have the choice to have the money! I think there is going to be massive debate about it!!

cot1198

Totally agree with you.

Customers should be given the choice, some may well decide to pay it off their balance anyway. But we should still be given the choice.

I think we need to start the debate now before NRAM start paying off balances and saying they can not reverse it. I think the second letter indicates they will pay the redress off the balance then send you a revised statement without telling you or you even accepting what they are doing.

cot1198

It's like they don't trust us with our own money so they want to decide what to do with it.

DebtMagnet

cot1198 wrote: »

As I undertand it because of NRAM's mistake under law they are not allowed to charge interest for the period stated. People with loans who paid interest in that period are entitled to the interset back. I think they should be allowed to decide for themselves how they get it back.

I'm very interested to see if there will be a differential on this matter between the interest 'charged' and the interest actually 'paid'.

We took a maternity break during the period in question and wondered if the interest during that period would be included in the redress.

If they were not allowed to CHARGE interest in that period then we should get it back. If it was on what was PAID then obviously not.

Common sense would suggest that as interest has been charged 'illegally' then even though it wasn't actually paid by us, it should still be part of the redress as it forms part of our existing balance?

cot1198

DebtMagnet wrote: »

I'm very interested to see if there will be a differential on this matter between the interest 'charged' and the interest actually 'paid'.

We took a maternity break during the period in question and wondered if the interest during that period would be included in the redress.

If they were not allowed to CHARGE interest in that period then we should get it back. If it was on what was PAID then obviously not.

Common sense would suggest that as interest has been charged 'illegally' then even though it wasn't actually paid by us, it should still be part of the redress as it forms part of our existing balance?

If the interest was charged for the maternity
period then yes I would think that comes into it.
If they suspended interest charges for that period that may be a different matter.