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

cot1198

lennonc1 wrote: »

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

Thanks for that

I think the main question I would like to ask is:

can NRAM dictate how existing customers are given back interest payments, wrongly taken from them through their breach of CCA regulations. After all I would argue that customers have been financially disadvantaged as they have already paid this money to NRAM from their bank accounts I think it should be paid back into bank accounts.

lennonc1

That is exactly what I'd like to know-
Also, if you are in arrears as I am now with the unsecured loan, can action be taken on it if it is unenforcable until we receive revised statements, I would like to know the legality of this too and see if it can be taken off credit file as it is first time ever to be in arrears and only because I'd lost job!
Will also check if interest is payable on this refund!
And also the fact I think whole mortgage was missold as I wanted mortgage and got part mortgage part unsecured loan under their bad advice!!!

cot1198

I think one poster said they had spoken to NRAM and they had said that any payment would not go towards any arrears, so just off the balance. they are not even giving customers the option of paying off any arrears they may have. I don't get how this redress business can be so one sided.

downhiller

cot1198 wrote: »

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.

It's a chicken and egg situation. They charge you interest in advance of the statements. If the statement comes out and it's not compliant, then that interest shouldn't have been charged. It's lunacy to withhold interest in anticipation of a potentially non-compliant statement. What if you withhold interest payments then the next statement is compliant? You suddenly need to find the money to pay to NRAM. If these people are already in arrears can they instantly find hundreds more or are they just digging a bigger hole for themselves?

Again, don't withhold any payments.

cot1198

downhiller wrote: »

It's a chicken and egg situation. They charge you interest in advance of the statements. If the statement comes out and it's not compliant, then that interest shouldn't have been charged. It's lunacy to withhold interest in anticipation of a potentially non-compliant statement. What if you withhold interest payments then the next statement is compliant? You suddenly need to find the money to pay to NRAM. If these people are already in arrears can they instantly find hundreds more or are they just digging a bigger hole for themselves?

Again, don't withhold any payments.

I agree, don't withhold any payments

The new statements that comply with CCA Regulations due out around April will include any interest payments due back up until that point. So there is no point in withholding payment. Remember interest is not chargeable until the matter is resolved in full, not up until it was announced there was a problem in December. I think they would not issue any other non compliant statements in that period. But they still can not charge interest for that period as they are still non compliant until they issue new statements.

Sillysausageuk

Has anyone found out why it will only be backdated to oct 2009 and not 2008?

lennonc1

They have a 12 month grace period or something like that so from oct 2009 is the date of failure to comply even though it was a year earlier! Something else I will check with lawyer tomorrow, good point!!

DarrenBolton

Hi,

I've just stumbled upon this thread and remembered I to had received these letters, however just filed them waiting for the next letter to arrive in the time stated.

After reading through the comments being made I to would at least like the option on how I am to be redressed.

Does anyone have a draft of a complaint they have already sent to NRAM relating to this issue that they wouldn't mind sharing as I am hopeless at wording these sorts of complaints.

I would be most grateful if anyone was able to share.

Cheers all.

lennonc1

Hiya, have a look over the last couple of pages there has been a few emails drafted on here, I will be getting advice from lawyer today do will be back on later with my findings. I hopefully can add info as I too will be writing to complain.

jimmy1000

I have also arrears both secured/insecured but paid quite a bit back, so all is well. I'm also affected and had second letter for my £12k unsecured loan saying about my redress. I did write a letter to NRAM(still awaiting their response), but to be honest
I 100% expect them to knock off the balance. Their is no way they are going to pay out 270 Million cash. If they pay one individual they will have to the same.

Complete waste of time to be honest. It's just a simple miSTAKE FROM nram and a complete bonus to be honest either way.

They(NRAM) will have the best lawyers money can buy and trust me I think we are lucky to be getting any payout(balance reducement)...

please just get on with it!