Northern rock loan over £25,000

Bignosher13

Our Together Mortgage unsecured element is £28,500, taken out in 2006. We received the standard 8 week to respond letter today. It also states a member of Customer Relations will contact. This is something I don't feel comfortable with, any advice is much appreciated on how to handle them.
The initial redress for the 150,000 below the £25k begs the question to me:
How many people are above the threshold? And if, as I believe our agreement is unenforeceable due to the CCA 1974 issue, what kinds of figures would a full redress plus interest total????!!!!!

Mthomas1986

Right sent my letter of complaint via email to the Customer Relations, will post the reply, as and when I get one.

gwc1980

We also have loan for £28.5k taken out in 2007 with all paperwork referring to the cca1974. We have complained in a letter to nr and recieved the standard 8 week response.
Will be watching closely what happens with the other people who's 8 weeks end before ours.
If needs be will pursue further with fos and urge others to post their story's and complain to nr where necessary.

djc77

I do hope some momentum can gather now. I would be really interested to see how many loans of 30k were dished out. I have taken some advice from an employee assistance provider I have access to who told of the FOS rules etc. I am off to see my MP on Monday morning, will be first in the queue for his surgery. I don't know about anyone else but I firmly believe misrepresentation is the route to go. I have nearly paid 30k in payments so would love the contract to be rescinded. It would change my life to the contrary of the day when they forced me to delink this blasted loan by upping my then mortgage by 60%! Time for Karma. Will post MP's thoughts.

Chrisb80

Hi,

For the people that have recently joined this thread, you may have already read that a few of us have had final response letters from NRAM. I personally (and I think at least 2 other people that I’m aware of) have written to the Financial Ombudsman already with our complaints. My letter went off to the FOS on 19/02 and I have been told that I will hear back from them within 12 weeks of this date.

The sooner we can all complain to the FOS the more traction/momentum we will get and hopefully someone somewhere will realise what a big issue this really is!

Mthomas1986

Ladies and Gents,

Here is a copy of an story I have submitted to BBC watchdog today, lets see what happens:

Hello you maybe aware of some recent activities in December 2012 relating to NRAM, and in particular its Together product.

Customers who had mortgages built of a mortgage loan and topped up with an unsecure loan, were redressed with interest charges as they had received mortgage statements with incorrect terms (wording) which did not comply with the CCA. The redress was limited to customers who had taken an unsecure top up loan of up to £25,000. Customers who took larger top up loans exceeding £25,000 were not due a redress, as loans over £25,000 were not covered by the CCA, well this is what NRAM are currently telling there customers, (please see their website relating to this).

In actual fact I signed an agreement for the unsecure loan element of the mortgage for £30,000, the document is headed with "Fixed sum loan agreement regulated by the consumer credit act 1974" and where the signature panel is states "This is a credit agreement regulated by the Consumer Credit Act 1974. Sign it only if you want to be legally bound to its terms".

On their website NRAM are stating that "Together unsecured loans" over £25,000 are now not regulated by the CCA, however the agreement I signed for the loans says otherwise...

I believe this is case of misrepresentation, further more the loan has some very peculiar terms, for example the loan is unsecure (not secured to the property) however if I was to move the mortgage part of my finance to another company the interest rate on the unsecure debt rises by 8% over the SVR meaning and interest rate rise to 12.79.

My main question here is if this whole agreement has been misrepresented from the start is the interest rate hike enforceable??

There are hundreds of people in the same situation as me, we have started a group on Money Saving Expert, we have written complaint to NRAM and some have even started approaching Financial Ombudsman Service. I believe this story is going to cause a big stir over the next few weeks..

tinystar2001

Writing to Watchdog is a really good idea. Lets hope they take it up.

Fizzy_Fish

Good work to those who have been raising this issue via the
media and other channels. The more people asking questions of NRAM about this, the better!

My FOS complaint has been submitted, though have posted it from Australia (where we're currently staying) so may take a while to register with them.

Again, the more people who get complaints in, the better - so if you haven't already done so please check out the recent threads about how to do this.

Fingers crossed we hear some good news soon!

BritAbroad

I'm interested in the under/over scenario too. I took a Together Mortgage in 2004, borrowing less than £20k as the unsecured part. When I remortgaged a few years later, I increased the unsecured loan to about £28k to cover works we were doing to the house. I've spoken to NR twice so far and they seem very unsure of what happens in this scenario. I've had no letters from them, but as I've moved that's not surprising. I was going to email them, but as the website states not to supply any personal info I've held off till 8 weeks are up from my initial query (though how they expect to be able to assist people if they're not to supply any personal details is beyond me).

dvr80

I contacted NRAM just over a week ago to chase them up since it had been 9-10 weeks since I received the 8 week holding letter.

The not-so-helpful agent said there was no record of the original complaint despite my pointing out that I had the response in email and letter from them!

I've now sent all docs and covering letter to the FOS to escalate as NRAM seem to be dragging their heels whilst putting their fingers in their ears perhaps hoping this will all die down.

I strongly urge everybody involved to keep on pushing this, if not with NRAM then with the FOS who will be obliged to act eventually!