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

shaney1981

in response to the poster who warned me against withholding any payment to nram. They have acknowledged in writing that interest in unenforceable, so I have only stated I will not be paying further interest until the issue is resolved. I cannot see how they can challenge this. I have included the statement in a complaint regarding my method of redress. In my estimation they owe me nearly 4k. If I did nothing they would merely adjust my balance which is not in my interest. Whether it is an oversight of cca regulations or mis-selling of ppa they still have contravened official legislation, in short they have broken the law. Not really a direct comparason but if I break the law I do not choose how I get to repay my debt to society....

kimdegsidash

NRAM didn't mis-sell the loans, they didn't charge interest illegally and they don't have to pay us a penny directly. The law says that the agreement is unenforceable because of a technical error they made in the way they set out information on their statements. In fact, if they had got the statement detail right we would not be owed a penny. We have been charged interest correctly under the terms of our loan agreements, it is merely a technicality that is forcing them to have to pay any form of finanical compensation in the form of redress.

The dictionary definition of redress is to "set right, remedy or rectify". It is not intended to be compensation or financial bounty.

This is not the same as PPI and I doubt we will be paid interest on the amount of the redress.

Please try not to get too hopeful of anything other than a reduction in the balance you owe, therefore lower monthly repayments based on the current interest rate over the remaining loan term.

cot1198

Untill someone can give a defacto legal position on this I think people will see it different ways.

kimdegsidash says:
We have been charged interest correctly under the terms of our loan agreements, it is merely a technicality that is forcing them to have to pay any form of finanical compensation in the form of redress.

I could say:
I think NRAM have charged interest illegally as they where not allowed to charge intersest for the period stated as the breached the terms of the CCA. The money they are paying back is money that was taken illegally under those terms and is not compensation but money that should have not been taken,

I think NRAM have chosen the word redress very carefully

funkyc27

Well I decided to contact the finanical services ombudsman to complain about the lack of choice over my redress- they have wrote back to me and informed me that they have contacted NRAM about the matter and I am now waiting the 8 weeks to hear back form NRAM! I suggest if others are not happy you also do the same!

cot1198

funkyc27 wrote: »

Well I decided to contact the finanical services ombudsman to complain about the lack of choice over my redress- they have wrote back to me and informed me that they have contacted NRAM about the matter and I am now waiting the 8 weeks to hear back form NRAM! I suggest if others are not happy you also do the same!

I agree, I put a complaint into NRAM last week so I'm waiting too.
If you are not happy then complain, they then have to look into it for you.

lennonc1

I see lawyer tomorrow so will update you all

cot1198

lennonc1 wrote: »

I see lawyer tomorrow so will update you all

Thanks lennonc1

It will be very interesting to see what they say.

downhiller

shaney1981 wrote: »

in response to the poster who warned me against withholding any payment to nram. They have acknowledged in writing that interest in unenforceable, so I have only stated I will not be paying further interest until the issue is resolved.

It has been resolved though. NRAM have identified the errors in the paperwork and any future statements should be compliant. Assuming that does happen you are liable for interest right now therefore withholding payments is one of the stupidest things you could do. I believe you're currently in arrears and you want to get yourself further in arrears??? Please, keep up your full payments.

lennonc1

cot1198 wrote: »

Thanks lennonc1

It will be very interesting to see what they say.

Is there any questions that any of you would like to ask to lawyer, if I have a comprehensive list of questions then can get more information for you all!!
Thanks
Ceira x

cot1198

The matter is not resolved.

NRAM have identified the errors in the paperwork yes. But they are still not allowed to charge interest until they issue new statements that comply with CCA regulations and by all accounts that will not be until around April.

That said withholding payment is not a good idea.