Northern rock loan over £25,000

claret_mike

downhiller wrote: »

My together mortgage was brokered. We bought a new build property and we were pushed to the developer's chosen broker. The broker offered us no other option but Northern Rock

So if you believe that the mortgage was mis-sold then I would raise my complaint through the broker rather than NRAM. I would complain that they should have advised you that the loan was unregulated and that by accepting the loan you would not be afforded certain protection.

The reality of the situation is that I know that no mortgage adviser would have checked this.

They would have checked whether or not the product was the one that they discussed with you when you accepted their advice - i.e is the interest rate the same, payment amount the same, amount borrowed, fees included etc... The CCA is not a mortgage and therefore it may be outside the scope of a mortgage adviser. A grey area lets say.

If you go to NRAM and say you have missold me this... They will say, we paid a fee to an Adviser so we have not advised you to take this, so no mis-sale could have taken place. You then will probably need to alter your complain to them.

The crux of all of this for everyone is not whether the product has been mis sold but the fact that the paperwork they issued was incorrect. Is was misleading - end of.

Legally speaking - I cannot tell you whether the loan is unenforceable or not. Ultimately, you need to make your decision on what route to take but I really believe you should be clear and concise on what you are trying to argue/prove etc or else you will get distracted in circles potentially - going to the adviser - however, I think this should be your first stop to see whether or not it was reasonable for the Adviser to have spotted it. Thats why they were paid a fee etc...

aarjay777

The key issue is the signed contract which we entered into with Northern Rock.

The Mortgage offer letter also confirmed that the additional feature (unsured loan amount) is regulated under the CCA. The offer letter also confirmed that I would receive a “Pre-contract information” document with this additional feature.

This "Pre-Contract Information" was sent out after the mortgage offer letter was produced and was signed by both myself and the Northern Rock. I have a hard copy of this agreement signed by both parties on file.

This was done without the involvement of my mortgage adviser, this agreement was directly between me and the Northern Rock.

We signed an agreement saying we were happy to be bound by the conditions of the consumer credit act. This was official documentation produced by the Northern Rock and therefore they are responsible for preparing an invalid contract.

In my opinion claret mike nails it with the following paragraphs;

http://www.financial-ombudsman.org.u...misleading.htm

principal 6 & 7 on here seems to have been well and truly broken also.

Principle 6 (customers' interests)

"A firm must pay due regard to the interests of its customers and treat them fairly."

Principle 7 (communications with clients)
"A firm must pay due regard to the information needs of its clients, and communicate information to them in a way which is clear, fair and not misleading."

The Northern Rock have clearly breached the Consumer Credit Act by producing loan agreements which clearly states we are protected by this act.

The paperwork doesnt just make reference to this as a one off, it is all over the paperwork, letters, mortgage statements and most importantly the hard signed copy by both me and Northern Rock.

I am struggling for time due to work commitments, but if someone has got some spare time, I would suggest contacting Trading Standards or CAB to find out about our legal rights, as the loan agreement clearly states we should contact either of the above departments to find out more about our rights.

downhiller

In the grand scheme of things, selling loans on completely wrong paperwork which was misleading is far worse than forgetting to put the original loan amount on the statements. nRAM's tactic of saying "aye, sorry about that but tough luck" doesn't wash with me

Fizzy_Fish

Chrisb80 wrote: »

Just seen this update on the NRAM website:

What if the statements I've been sent show that my loan is regulated by the CCA?

We are aware that some customers with loans of more than £25,000 have been sent documentation in the past that contained references to the CCA.

If this applies to you, we apologise for any uncertainty this may have caused.

We will be writing to all customers with loans of more than £25,000 to explain the situation and to provide updated documentation.

They say this was a mistake from the past, but the statement that they sent me this week was full of more CCA affirmations.

Grrrr, will be writing a complaint to NRAM today taking the same approach as claret mike around the 'misleading' documentation.

Seems sensible to go through the official complaint channels for NRAM and FOS in the first instance, and if necessary consider other legal proceedings from there.

rmart

it is not just about the statements in our case. It is the fact that the loan was offered with CCA protection and it should not have been.

We were misled. Plain and simple.

I notice they do not mention the loan agreement in the web site update. That is because they know it is a big mess up and it could turn to something much bigger.

I will be emailing all the PPI claims companies over the christmas break with full details, maybe one of them will pick up the baton.

carlyberyl

Well it looks like NR are starting to pay out to those under £25k...

fermi

MSE News Article -> Northern Rock falsely told borrowers they had legal protection

Discussion thread -> https://forums.moneysavingexpert.com/discussion/4355403

wisden

:mad::mad:Hi,

After seeing all the news about NRAM i went looking at my mortgage.

I have a together mortgage and i looked into the breakdown of payments and found that i have a unsecured loan of £27,000 it was taken out in 2004.

I spoke to NRAM who said they would look into it for me and said i should receive a letter after the customers below the £25.000 threshold and it could be a few weeks yet.

Then i found in my together pack i had PPI alarm bells were ringing this was built into my mortgage called block insurance sold by the mortgage broker at a cost of £6,867 i am still paying it as it is built into my mortgage. I rang NRAM back and was told to contact broker direct.

The broker has now gone into liquidation we were advised to take out a mortgage with then Northern Rock because it suited our finances putting credit cards loan etc into it.

Our mortgage still runs for what seems a lifetime with NRAM and it looks like we are not entitled to at least getting some interest of our mortgage to bring the term down is this bad look or just been wrongly sold a mortgage please help.

RICESNEEZING

I took out a together mortgage in 2007 with a loan of £27k and am now paying 13% as we had to sell the house but due to the property market crash, caused by the likes of Northern Rock we got £70k less than we had payed and spent on the house, so the loan is still outstanding.

Surely the issue is that the contract is not valid as both parties signed it in error. If that is the case then does the situation not revert to what it would be if the contract did not exist. This being that Northern Rock had given us money with no agreed terms, interest etc. Surely then all we owe then is the amount of the original loan less what we have paid to date. Additionally as there are no valid agreed terms of how or if we will pay that back then they will have to apply to a court to get us to pay it back.

I think the important thing for now is that we dont sign or agree to any other replacement documentation. Im guessing that one possibility is that they will have lawyers all over this and are trying to play it down to get us to resign a valid contract. So possibley we dont have to pay them interest but they could demand the full loan back at any time?

rmart

What NRAM says
A spokesperson for NRAM says: “We are aware that some customers with loans of more than £25,000 were sent documentation that contained references to the CCA.





NO No NO , Mr Northern Rock, we were not just sent documentation that contained references to the CCA.



THE WHOLE AGREEMENT WAS INITIALLY SET UP AS A PROTECTED AGREEMENT. WHY NOT ADDRESS THAT ISSUE ?