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

Thrifty_Pixie

cot1198 wrote: »

My thinking is NRAM have said they will pay us this money back. I am just asking the question can they decide how they pay it to us. If the answer is yes they can, then fair enough I will gladly accept the reduction in my balance. But I still think it is worth a few more weeks wait to get a cast iron answer.

Fairy muff. As i said, that's your prerogative. I would never try to tell people not to fight for their rights, however i, personally, pick my battles a little more these days

lennonc1

cot1198 wrote: »

I agree, they will probably reject our complaints. But I for one will then take it to the FOS and see what they have to say. I can wait a few months to get this redress one way or another. Just keep plugging away they are hoping you get fed up and give in.

Oh I agree, in the end all I want is an option to receive payment the way I want!
I want to sell my house this year and iv been told 65k to go on market my mortgage is 78k so i will have to carry over my unsecured loan with a massive interest jump!! How is that positive! To be honest this was never actually explained to me when I took mortgage on, few years later found all documents and read them and realised we had been well and truly shafted! My fault for being young and stupid I suppose lol

Jenny2010

Had my letter very pleased with amount to be credited back. I'd personally rather have it off the mortgage reduced my unsecured term by 11 years xx

shredder91

Just to those asking if you could just take a payment holiday once the redress has hit the account.

Because the redress reduces the term of the mortgage, any payment holiday would increase the monthly payment as you would still be expected to pay off the loan over the new reduced term, you couldn't take a 6 month payment holiday then ask them to add 6 months to the back end of the loan.

cot1198

shredder91 wrote: »

Just to those asking if you could just take a payment holiday once the redress has hit the account.

Because the redress reduces the term of the mortgage, any payment holiday would increase the monthly payment as you would still be expected to pay off the loan over the new reduced term, you couldn't take a 6 month payment holiday then ask them to add 6 months to the back end of the loan.

Thanks shredder, never thought of that. I for one don't want my payments going up.

craaaigo

lennonc1 wrote: »

Oh I agree, in the end all I want is an option to receive payment the way I want!
I want to sell my house this year and iv been told 65k to go on market my mortgage is 78k so i will have to carry over my unsecured loan with a massive interest jump!! How is that positive! To be honest this was never actually explained to me when I took mortgage on, few years later found all documents and read them and realised we had been well and truly shafted! My fault for being young and stupid I suppose lol

I'm in a similiar boat, am selling up and will have to take the unsecured loan with me. This is why its such good news to be getting a few grand knocked off this loan. Theres nothing to stop you paying off the rest of the unsecured loan with a 0% credit card deal before the sale is completed though to save yourself the interest.

cot1198

craaaigo wrote: »

I'm in a similiar boat, am selling up and will have to take the unsecured loan with me. This is why its such good news to be getting a few grand knocked off this loan. Theres nothing to stop you paying off the rest of the unsecured loan with a 0% credit card deal before the sale is completed though to save yourself the interest.

True. For those near the end of the term or looking to move house having the reduction to your balance is a good option.

Not for me though as I'm not looking to move house and have a good 15 years to run on the mortgage.

cot1198

lennonc1 wrote: »

Ok have received letter this morning -

The interest will be credited back to your account balance.
We have taken legal advice and believe that our proposed method of remediation is the most appropriate course of action .
By crediting your account rather than paying you cash, all we are doing is crediting back to you the interest that you have already paid to your loan. Effectively that means your loan will have been interest free for a period of time, also means your loan will be repaid faster.
As a result the impact on your account is positive and as a company we are able to fulfil our obligations to treat customers fairly,

I will relay this info to lawyer and see what he says!! Boo!!

Word for word the same letter I got last Friday.

lennonc1

I have taken a few payment holidays over the years, as long as you have paid 9 consecutive months without being late you can apply!

So does taking a payment holiday therefor alter your agreement term etc?

lennonc1

craaaigo wrote: »

I'm in a similiar boat, am selling up and will have to take the unsecured loan with me. This is why its such good news to be getting a few grand knocked off this loan. Theres nothing to stop you paying off the rest of the unsecured loan with a 0% credit card deal before the sale is completed though to save yourself the interest.

I still have almost 30 years to run on mortgage. I don't think I would be able to get credit card due to default and poor credit rating, so that is not an option. I have a young baby and I am not working at te moment but that will change in next couple of months so cant even afford to pay for estate agent fees etc!

I don't mind balance adjusted, I would prefer the money (or the choice)