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Northern rock loan over £25,000

edited 30 November -1 at 12:00AM in Loans
1.9K replies 430.7K views
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  • edited 13 December 2012 at 8:47PM
    bigbadwolf500bigbadwolf500 Forumite
    72 posts
    edited 13 December 2012 at 8:47PM
    Welcome the the thread NorthernRockNewbie - lets see what the next few days bring first .... fingers crossed x

    If we hear nothing from NRAM - I'd certainly be willing to chip in for some legal advice
  • We took out a £25K unsecured loan as part of our together mortgage in June 2007 but then increased it 3 months later to £30K. Do you think this will mean it is protected by the CCA because the original loan amount was not over the limit? I'm not holding my breath but I can't help but hope! What do you think??
  • GhIFA wrote: »
    Just out of interest, at the time you entered into the agreement, what protection did you think you had on this part of the loan?


    The CCA regulates the way in which consumer credit licensees carry on business. For example, there are rules on advertising, pre-contract disclosure, credit agreements and post-contractual information. In addition, the Act confers certain rights on consumers, including in relation to withdrawal from a credit agreement, early settlement just to name a few. As most people taking out such loans as we did (not being legal experts) the CCA protection for me is piece of mind.

    I may be wrong but this is my view...
  • Hi all, first time for me joining a forum but its a pretty significant event for all of us. I'm hoping beyond hope that there is some kind of financial redress after this but only time will tell. I feel a combination of naivety on my part when taking out my NR mortgage and receiving some terrible 'expert' financial advice in 2005. I have a feeling those with over £25000 unsecured loans will be brushed aside if NRAM feel they can get away with allowing unregulated amounts under regulated agreements pre 2008. One thing I do know is I will be keeping a very close eye on the situation over the coming weeks and months. Here's hoping those of us who really suffered after the financial crash have something positive on the horizon!
  • I'm another one in the same boat! My wife and I took out a Together Mortgage in 2007, with an unsecured part of £30,000 and the statement of "Fixed-sum loan agreement regulated by the Consumer Credit Act 1974".

    I have just emailed NRAM and will see what they say!

    I'm sure I read somewhere yesterday that changes from fixed to standard variable rate (or similar) post 2008 on an existing loan may then automatically make it become regulated under the 2008 changes. Does anyone have any thoughts on this? (Ours was a stepped fix rate that changed rate in 2008 and 2009 and then reverted to standard variable in 2010).
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  • I have read the statement issued by the Treasury and have decided to contact the MP and Minister there to make them aware of the matter.

    I hold no hope as it will be my luck that I will fall outside of the criteria but here is what I have emailed..


    Dear Mr Javid

    Following your recent announcement on the issues identified at NRAM with some CCA regulated loans, I felt the need to write to you to make you aware of another potential irregularity with the paperwork that Northern Rock and would ask to see whether you are able to have this also reviewed as part of the ongoing review that is taking place?

    As I understand from research carried out, there seems to be a number of "together" mortgage clients who hold personal loans in excess of £25,000 that have had this loan "passed off" as a CCA 1974 regulated loan. Following the communications issued by NRAM, it has become very clear to a number of us (NRAM customers and taxpayers) that unregulated loans have been written as regulated loans. I am seeking clarification directly from NRAM whether these loans are being treated as regulated or not and whether they will be included in your review?

    I believe that these "grey area" loans should form part of your review because ultimately it is another example of an irregularity with the paperwork which has far wider reaching consequences and impact that simply missing a small amount of information off a statement or two. Customers have had this loan believing it was regulated and it seems as though legally it is not and as a result, they are forgotten about.

    I am sure that this review presents a great opportunity to clean the house with regards to all issues like this so hope that you can take on board my comments and consider what further actions you can take in assisting clarifying the situation for these customers.

    I have copied the Rt Hon Greg Clark in on this email as I understand his responsibilities include the area of financial services.


    Many thanks for your time and consideration in this matter.

    I have also emailed NRAM to seek clarification on how my loan is regulated (or not as it may be).

    I guess all we can do is see what happens - we could all get letters tomorrow or in the next few days... I think rather than paying a barrister, we should chuck a few quid at Martin to see what he can get out of them :)
  • lizardslizards Forumite
    220 posts
    joeb - that's very interesting if it's true!

    I think we're all definitely in need of specialist legal advice. We'll see if any of us get letters over the next week I guess!

    Cross-posted - that's excellent Mike, good work! Would be good if Martin could look into it too - this has to be a pretty major thing, right?
  • joeb78 wrote: »
    I'm another one in the same boat! My wife and I took out a Together Mortgage in 2007, with an unsecured part of £30,000 and the statement of "Fixed-sum loan agreement regulated by the Consumer Credit Act 1974".

    I have just emailed NRAM and will see what they say!

    I'm sure I read somewhere yesterday that changes from fixed to standard variable rate (or similar) post 2008 on an existing loan may then automatically make it become regulated under the 2008 changes. Does anyone have any thoughts on this? (Ours was a stepped fix rate that changed rate in 2008 and 2009 and then reverted to standard variable in 2010).


    I'm the same. Mine was a 5 year fixed from 2005 to 2010 when it reverted to the SVR. Where did you read this?
  • Chrisb80 wrote: »
    I'm the same. Mine was a 5 year fixed from 2005 to 2010 when it reverted to the SVR. Where did you read this?

    I'm not sure where I read it! I think it was on another forum from a year or two ago where someone was trying to pick through the clauses of the CCA. I'll have another look...
  • this is a big topic of interest to me. me and my husband took out a together mortgage in 2007 with the loan being 28k. so i too am interested in how this turns out. even if they say we r not eligable and dont get a letter surely they r in breach of contract for letting us believe we are covered by cca? and if we are then why arent we included with those under 25k?
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