Lucky Northern Rock borrowers

Freecall

Some lucky people.....

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9738285/Northern-Rock-to-repay-270m-due-to-paperwork-error.html

somethingcorporate

A quick search you would have found half a dozen threads already discussing this.

And if you look to the right hand side MSE have an article on it.

Freecall

Yes but still thought that the Torygraph article put it very succinctly.

dunstonh

It is strange that they are getting away with it as making it unenforceable is not the same as writing it off. It just means they cannot go to court to get the money if the person refuses to pay it. However, it does allow the lender to record it as a debt in default. That would destroy the ability to get credit again for an extended period and for many that would encourage them to pay up.

Freecall

dunstonh wrote: »

It is strange that they are getting away with it as making it unenforceable is not the same as writing it off. It just means they cannot go to court to get the money if the person refuses to pay it. However, it does allow the lender to record it as a debt in default. That would destroy the ability to get credit again for an extended period and for many that would encourage them to pay up.

I had exactly the same thought. What is more, in practice the vast majority of borrowers will already have paid (bear in mind that this is an historic issue with no implications for future payments).

Maybe there is a cost of admin issue or maybe a contractual issue tied up in the sale of NR.

cripes_2

to be fair if youve got a northern rock mortgage you probably arent that lucky as the mortgage/ secured loan and unsecured loan probably is far far more than what the house is worth

_Andy_

Oh great, another thread about the same subject.