Northern rock loan over £25,000

Lmalexa

Also in the same boat as everyone here with loan over 25k, after a little research - just out of interest - the regulation changes to the CCA act that NRAM were not in compliant with also removed the financial limits as below,

2 Removal of financial limits etc.(1)In section 8 of the 1974 Act (which defines consumer credit agreements)—
(a)in subsection (1) for “personal” substitute “ consumer ”;
(b)subsection (2) shall cease to have effect.

Therefore loans over 25k are now regulated by the CCA, it probably only applies to new loan agreements from 6th April 2008 onwards (date new act came into force) but still interesting to note. As I understand it from NRAMs website we are due to be sent letters informing us that the loans are unregulated along with new paperwork - I wonder whether the paperwork will say the loans are unregulated or covered under CCA 2006 ?! Guess we'll just have to wait and see what is sent....

shellyk6666

gaz2180 wrote: »

We've completed this for £25k and I still have the letter from our solicitors detailing an accompanying cheque for this amount when our mortgage completed.

We later released more funds - another £4.5k - but we never actually borrowed the full £30k in our agreement and our first withdrawal was for £25k.

I would first argue that even at the £30k, all our paperwork states that we would be regulated. But then I would argue that at first we only took advantage of £25k of our loan facility and therefore we should have been regulated from day 1 anyway. We haven't received anything at all from NRAM yet.

Has anybody else done this - got an agreement for a higher figure than they actually borrowed? One that particularly crosses the £25k 'threshold'?

I think this is my situation. I initially had £25K as the unsecured element and then 6ish months later had a further sum released. During a recent telephone conversation NRAM have confirmed that the 2 amounts are part of the same loan and therefore my loan is considered to be over the £25K (and therefore not regulated by CCA). I have already put a complaint in as all my documentation states the loan is covered by CCA and received a holding letter so will wait and see what they have to say.

Pea2380

I have just spoken with NRAM and they assure me they are looking in to ALL loans that were/are CCA regulated. I told them that even though their website states that all loans over £25k are NOT regulated, all our paperwork contradicts this! They assured me that these were all being looked into! Perhaps this forum has drummed up enough to get them to look into things! Fingers crossed for all of us in this 'together mortgage' situation and thank you to those who have spared the time to help the rest of us!

e.scrooge

kaybo69 wrote: »

Does anyone else agree that the hike in interest rate for delinking is totally unfair seeing as NRAM do not offer new products and therefore we have no choice to?
Could this help us?....page 8 is quite interesting
vvww.oft.gov.uk/shared_oft/business_leaflets/enterprise_act/oft854Rev.pdf

I agree, this does look relevant (at least to me). Anyone seeking legal advice might want to highlight this to their solicitor/advisor.

The current link doesn't work - the www part has been mistyped.

kelr101

I sent the following email to NRAM on 13th December:

Dear Sirs,

With respect o the recent announcement on the NRAM website concerning the regulation of loans in accordance with the 1974 CCA, I wonder if you can advise on the following.

My Together Mortgage was processed in 2006 which contained a loan element of c. £30,000. In accordance with the paperwork and per the initial quotation my loan is covered by the 1974 CCA.

Yet according to your site,the 1974 CCA only covers loans under £25,000 - How can this be when it is clearly stated on my paperwork.

This is also clearly stated on my loan documents.

Please could you inform me of my position.


and they finally responded on 27th December stating:

Thank you for your email following the recent announcement regarding loans that are regulated by the Consumer Credit Act (CCA).

At this time we are not able to give you any further information about the situation. We are currently undertaking a thorough review of all documentation sent to customers who hold loans that are regulated by the Consumer Credit Act (CCA).
Once we fully understand the situation, in terms of who is affected and in what way, we will write to those customers with an update. We will do this in the next eight weeks.

In the meantime, our websitewww.nram.co.uk will be updated regularly with all the latest information for our existing and redeemed customers.http://www.nram.co.uk_/

Please note: if you hold an unsecured personal loan with a 16-digit account number, we can confirm you are NOT affected by this issue


So it appears they are reviewing ALL Together Mortgages and their associated loan elements and will be advising in the next 8 weeks (i.e. by end of Feb)

lizards

If I didn't know better, it looks like they didn't read your email at all! Surely not ;-)

Or most likely, they read it, have no answer given they haven't yet decided which way they're going to leap on loans that claim to be CCA regulated, so gave the vague wishy-washy one they did which at least is factually true and hoped it would satisfy you!

kelr101

Lizards....I must admit I agree with you :-)

I will give them the benefit of the doubt for the moment, as I have raised it and therefore expect a response within 8 weeks as per their e-mail....but if no satisfactory response is received I will certainly be taking it further!

Chrisb80

Still not having had a response to my complaint i called them this lunchtime and was told that my loan account has been "flagged" as one of those affected/being looked in to.

I then questioned this as 1. I have had no letter from them telling me that I’m affected and 2. their website clearly states that over £25k loans are not included. The lady said that my account was being looked into and that it is flagged up as a CCA protected loan?!

I said that i was confused as this information is contradictory to that stated on the website, but again she said that my loan account is being looked into and that i would receive a letter within the next few weeks. Cant help but feel i was being fobbed off.

And still no response regarding my complaint. I guess there’s not a lot we can do but wait for the 8 weeks to pass, assuming this started from the 12th December. Cant take this to the FOS yet as they are refusing to respond to complaints...

Refund_me

Seems they have updated the questions on their website

---

What if my original loan amount was greater than £25,000?In the case of loans taken out before 6 April 2008, the CCA regulations only apply where the amount we agreed to lend you (the amount of credit) was £25,000 or less.
With your loan, the amount we agreed to lend you exceeded £25,000, therefore your loan is not regulated under the CCA.
This means there are no changes required to your loan, which continues to operate in the usual way, and therefore no redress is due.

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.


Am I entitled to a refund of the interest that I've paid?
If your original loan amount was greater than £25,000, your loan is not regulated by the CCA, so the issue with non-compliant CCA documentation does not affect you.
This means you are not entitled to any redress.

claret_mike

This was on before xmas - read post 144 page 7/8 of this thread. Cant see any updates.