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

cot1198

craaaigo wrote: »

The beauty of UK financial services for a consumer is they now HAVE to listen to you. Youve instigated a formal complaint which must be formally responded to. If you are not happy with this response then you can refer to the Financial Ombudsman Scheme at NRAMs expense. This would cost them in the region of £500 so it doesn't take a genius to work out that it would be a lot cheaper for them to simply give you what you want and avoid this scenario.This isn't going to automatically happen for people sitting back and waiting for others to take the lead though, as make no bones about it - NRAM dearly want this money to come off their outstanding loan book.

I agree, as I posted before it is far better for NRAM to write off part of an outstanding loan than to pay more money out of public funds.
Also by doing this the books look a lot better as the amount owed to the tax payer comes down.

I am under no illusion that I may be doing all this in vain and NRAM will do what they want one way or another. But still it's worth trying

cot1198

There are two big word in todays financial services industry....

Choice and Fair

It is frowned upon if a customer is not given a choice, for example if a customer was not given the choice of having PPI when they signed up for a loan. They where told they had to have it and as such where not treated fairly.

In my opinion this is what NRAM are doing. Existing customers are not being given a choice and are not being treated fairly. Of course NRAM may be fulfilling their obligation by giving redress by any way they see fit.

This may well go all the way to the FOS and I may still not win, but I'm ready for that.

lauraeast23

I've sent an email today stating that a contract was entered into by both parties agreeing that a fixed sum be paid for a fixed term and that by applying the redress to my outstanding loan balance this will alter those terms with no prior agreement from me.

I have no idea of the legalities of them being able to adjust the contract terms and or amount paid without my consent, I do know that I would not be able to change the terms without their consent !

Will see what develops, I don't hold much hope but better to try to push it than do nothing at all...

MrsPass

I have spoken with NRAM this evening and asked about the redress. I have a small amount of arrears on my mortgage and unsecured loan but have been maintaining regular payments for over 2yrs now and wondered if the amount is greater than my arrears if I could put the money on to mortgage arrears - the guy I spoke to says that the redress will not count as a payment towards any arrears and no money will be given out (not that I expect that due to my arrears). He was also unable to advise how much I was owed. Overall very vague and confusing. Anyone else spoken with the recently?

mr_j_bravo

Will interest be payable on the redress?i know that with ppi claims it is?

lennonc1

I would imagine they would have to pay interest on what they owe us! And why not as it is the same as Ppi etc! I have a complaint in at the no with nram with regards to Ppi and home insurance that was mis sold, i think I will call today and do the same as above and tell them I don't want redress as that would alter payment term and I do not want to do that, I would rather the money went to my arrears with this loan, but can I ask if this unsecured loan is unenforcable and really legally shouldn't have been paying it can I make them remove the arrears from my credit file etc or would I need to get advice?? Aghh so confusing and annoying we don't know our rights! X

Thrifty_Pixie

lennonc1 wrote: »

I would imagine they would have to pay interest on what they owe us! And why not as it is the same as Ppi etc! I have a complaint in at the no with nram with regards to Ppi and home insurance that was mis sold, i think I will call today and do the same as above and tell them I don't want redress as that would alter payment term and I do not want to do that, I would rather the money went to my arrears with this loan, but can I ask if this unsecured loan is unenforcable and really legally shouldn't have been paying it can I make them remove the arrears from my credit file etc or would I need to get advice?? Aghh so confusing and annoying we don't know our rights! X

it is NOT the same as the PPI situation though. PPI compensation is for MIS-SELLING. this redress is because of a legal technicality. completely different.

lennonc1

I have an appointment with my lawyer on Wednesday so I'll will let you all know what is said, spoke to citizens advice, referred to shelter for advice on mortgage detail and cant help and told me to see lawyer as it is quite complex, they can only help if you are in arrears and at risk of loosing your home.

lennonc1

Thrifty_Pixie wrote: »

it is NOT the same as the PPI situation though. PPI compensation is for MIS-SELLING. this redress is because of a legal technicality. completely different.

The citizens advice said it would technically be the same as they have to repay plus interest. I will confirm with my lawyer on Wednesday.

cot1198

I was thinking the other day about situations that could compare to this one.

One I thought about was income tax.
If you had been over taxed for a period of two to three years could the tax office insist they pay you back by reducing the amount of tax you pay until a time when they had paid you back all the money they should not have taken anyway?

My main point is if it was illegal for NRAM to take interest payments from customers can they legally dictate how they pay that money back. For me that money came out of my bank account, paid from my wages that I earned doing my job. I would like it back in my bank account thank you.