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

dsw8

Sillysausageuk wrote: »

Anyone else worried that this will be followed by an increase in interest rate?

I have not thought that and don't see how they could justify it based on 2 reasons
1. They are state owned bank and I would expect them to stick in line with BoE base rate. If the base rate changes there can be no arguments really.
2. They are not offering any new business therefore they have no need to justify raising capital through higher interest rate.
I really do think they would be in for one hell of a bad time from existing customers if they did put up the rate as there is no justifiable reason. It would make there investment weaker and cause massive risk to getting as much taxpayer money back.
Bottom line - we all need to rapidly get our unsecured loans paid off while BoE base rate remains low in order to allow us to move to new lenders. Staying on NRAM svr is not sustainable medium to long term

shredder91

dsw8 wrote: »

Ours was for 23500 so near upper limit since early 2008. We have been making overpayments during that time too so I was unsure how that would be factored in. After reviewing the statements following the PR in Dec 12 I guesstimated c. 5k and it was around that. Hope you get what you think your owed and best of luck!

your situation is very similar to mine, altho my loan was a bit higher, we made overpayments in that time but we also took a maternity break - so i imagine that evened itself out. If you got £5225, i would hope for something similar, which would be fantastic.

whichever way it comes, i dont mind - as i said earlier, if i could get the money in my hand i could do some home improvements - desperately need new fascias and guttering - or i knock 5 or 6 years off the mortgage term and i can retire earlier than anticipated

either way would be a win

shredder91

in fact, it would save me 3 years and £15k in interest.

cot1198

I did get to speak to someone at NRAM yesterday just to check they had got my complaint email last week and it had been logged. They had and it was logged on. I was also told that Their 'oversight' had not disadvantaged me and customers where only getting this payment as a kind of good will gesture. I think I had read this before from other posters on here.

shredder91

what was the worst case scenario had we been affected because of the CCA oversights made by NRAM?

cot1198

shredder91 wrote: »

what was the worst case scenario had we been affected because of the CCA oversights made by NRAM?

I don't think NRAM's breach of CCA regulations could have impacted us directly, say by NRAM demanding we pay the loan in full.

Rather that this was technical breach, a mistake on paperwork. If you filled out a tax return or tax credits renewal and filled in a lower income amount by mistake.
Two years down the line you discover your mistake and inform the tax office/tax credits. they would insist you pay the overpayment back.

cot1198

Although I could be wrong I don't know all the legal in's and out's of the CCA.

lennonc1

I have been reading the cca regulations please google case of Wilson v First county trust, on wiki you can read all about it, and then on to cca 1974 and then amendment 2006. Any breach of cca regulations can be contested, and as they have admitted this breach we have the right as consumers to challenge this, I have also found threads on consumer action group dating as far back as 2002 with people questioning the enforceablity of their loan as statements didn't have specific information relating to your full credit amount. The more I dig the more the holes appear. They cannot say this is a gesture of goodwill paying us back on what is essentially illegal interest payments! Also any money/charges, arrangement fee etc added to the loan is not covered by cca so if this info is in your statement and added to term of loan, this is also breach as it not our original credit amount. Hope I make sense, I'm still researching and speaking with fa and lawyer to clarify my thoughts on this.

lennonc1

Industry look at 2006 CCA changes -
http://www.wragge.com/alert_1294.asp
Solicitor's opinions on the 2006/2008 changes - http://www.morton-fraser.com/publica...ew_regulations
The CCA 2010 Regs re: Modification - http://www.legislation.gov.uk/uksi/2...ulation/5/made

They all point to any changes automatically quash the earlier agreement and create a new one.

cot1198

lennonc1 wrote: »

I have been reading the cca regulations please google case of Wilson v First county trust, on wiki you can read all about it, and then on to cca 1974 and then amendment 2006. Any breach of cca regulations can be contested, and as they have admitted this breach we have the right as consumers to challenge this, I have also found threads on consumer action group dating as far back as 2002 with people questioning the enforceablity of their loan as statements didn't have specific information relating to your full credit amount. The more I dig the more the holes appear. They cannot say this is a gesture of goodwill paying us back on what is essentially illegal interest payments! Also any money/charges, arrangement fee etc added to the loan is not covered by cca so if this info is in your statement and added to term of loan, this is also breach as it not our original credit amount. Hope I make sense, I'm still researching and speaking with fa and lawyer to clarify my thoughts on this.

Interesting stuff, thanks