Northern rock loan over £25,000

lennonc1

They are using Eversheds lawyers if that is of any use to you, I have contacted a few lawyers about this as I am one due redress but am contesting payment method and term reduction. As there is so many it is worth looking into class action. Please see below

lennonc1

They are using Eversheds Lawyers if that is of any use to you.
I would look into the possibility of class action -

I am the same, can only go to small claims court if 3000 or under I have a feeling that mine is near 4000, where in country are you. Some are thinking of class action -

Reasons for bringing a class action

Same potential claim – Naturally a class action can only be brought if the potential claims of the individuals privy to the group are relatively similar. If the claims were not similar then a court could not treat the action as a group action since different factual and legal elements would have to be looked at for each specific case; this is why parties bring different disputes against each other and so a group action is of not always suitable. However, when the facts are similar for all members of the group it makes sense to bring a class action; the court will encourage a group action as it can deal with the matter in one case rather than lots of different cases. A court will consider it a waste of its time if it has to repeatedly decide the same facts and so there is significant court guidance that if you are considering a claim and there is potential for group action you should strongly consider whether it is appropriate.
Reduce costs – The cost of bringing a claim can be very expensive particularly if you are taking on a large entity. It therefore makes far greater sense for people to share the costs of litigation by teaming up with others in a similar position. If as a group, only one set of solicitors are instructed and the factual cases of each member are identical your legal costs will be far less than they would have been had you brought the action by yourself. The group action does not mean that you will necessarily receive any less compensation if your claim is successful; a court will usually make a ruling on how much an individual should be entitled to, and each member of the group should receive that amount.
Publicity – Often when a group of employees are bringing action against an employer (perhaps even through a trade union) the negative publicity associated with such an action for the employer is likely to lead to an increased chance of them wishing to settle the claim and thus avoid further negative publicity. The publicity is likely to be greater with a number of employees involved in the action, rather than just the one.
!

For the reasons given above class actions are encouraged by the court and should be advised by a solicitor if the individuals involved have a claim based on the same facts. This will usually happen in situations such as when a group of shareholders bring a claim against the directors of a company or when the employees of a company bring a claim against the employer. It should be noted, however, that it is only when the individuals are bringing almost entirely the same claim, or element of the same claim that a group action will be allowed by the courts.

djc77

Step 1. Applied for a mortgage
Step 2. Offered Together Product with mortgage and unsecured loan
Step 3. Signed mortgage documents along with consumer credit act agreement for £30000.
Step 4. Advised by solicitor to sign quickly as house sale could only take place after 14 days as the unsecured loan had a cooling off period as per CCA
Step 5. Interest rate hike when forced to take mortgage elsewhere

Blah blah blah. Northern Rock breach CCA but now claim I'm not protected, shock horror. THEY HAVE MISOLD!!

I have emailed Rachel Reeves MP as shadow chief secretary to the Treasury

Good luck

Evenfields

lennonc1 wrote: »

They are using Eversheds lawyers if that is of any use to you, I have contacted a few lawyers about this as I am one due redress but am contesting payment method and term reduction. As there is so many it is worth looking into class action. Please see below

Hi, my point with this quote was that in their language in the letter they clearly had identified that there was something challengable about those non stand alone agreements i.e Together loans on CCA paperwork but over the 25k.

I totally agree that class action is the way forward for both issues - the method of redress for loans under 25k and the legitimacy of the loans over 25k. The rules for small claims are changing i.e. limit going up to 10k in April. See small claims court guide on MSE.

tinystar2001

I have received the 8 week holding letter to my complaint about their poor communication. I had not heard dron them regarding my loan for £22,100 linked to a together mortgage, but asked if this was because my loan 'offer' was for £30k. Obviously, they can't answer whether I fall into the under 25k or over 25k category, even though all my paperwork states it is CCA regulated. They clearly have no idea where they stand legally.
Also, I notice their website has been updated to say they will be writing to ALL customers in the next 8 weeks regarding this issue.

On another note, we have been offered some money by a relative to pay off our loan. I will ring NRAM about this but they'll probably tell me some nonsense, so does anyone know if we can choose to pay off the loan separately, and keep the mortgage as it is, or will they try to split the repayment between the two? I can't find anything about it in my paperwork.

lennonc1

Yes you can pay your unsecured loan off separately, you will need to tell them this payment has to go to the right part and you keep your mortgage as it is, you have the right to pay it off with no early repayment charges! Best thing to do really of you are in the position to do so, wish I was lol!!

NorthernRockVictim

tinystar2001,
Well, in view of the fact that this organisation has undoubtedly displayed that they trade unfairly and are content to act outside the laws that govern them, I would request confirmation in writing that any funds you intend to pay to them will be assigned to the account you wish them to.

Mthomas1986

Just had my reply from the UK Treasury.
More or less copying what is said on the NRAM website. Problem is they are confusing the matter with the issue that was discussed in December about statements that were sent to customers that did not comply to CCA guidelines.

I have replied and explained this is a different matter all together, loans over £25,000 were sold as being protected by CCA 1974, When actually they couldn't be due to the CCA credit limit of £25,000.

Will update with the next response.

rmart

so on the nram web site they say this :

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. These references were wrong and will not appear in future statements.
......

Not good enough. If they admit they were wrong then the agreement signed in the first place was wrong. If they admit the agreement was wrong then they cannot enforce it ,,, right ?

Evenfields

rmart wrote: »

so on the nram web site they say this :

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. These references were wrong and will not appear in future statements.
......

Not good enough. If they admit they were wrong then the agreement signed in the first place was wrong. If they admit the agreement was wrong then they cannot enforce it ,,, right ?

As I understand it, ALL loans above 25k that Northern Rock agreed to lend customers would be in question as they were taken over in February 2008 and the rules changed soon after on 6th April 2008 to encompass loans above 25k.

Northern Rock stopped writing these loans as the new owners pulled the Together products pretty sharpish after their takeover in Feb 2008. There will be some overlap because of loans agreed but not completed by the time they went into state ownership, but only a few.

That means that they potentially, could ALL be wrong.

Another thought with regard to any Secured Loans over 25k that they wrote is that often the part of the loan to create the Deed to secure the loan is also contained on the same agreement by lenders. Has anyone on here got a Secured loan and over 25k? Look at your paperwork because if that's the case, then that to me and it's imho only, that would give even more weight to the unenforceable argument.

To me that would surely invalidate the Deed which is what secures the loan to the property, as it would be contained as part of an agreement which contains a mistake. i.e. unregulated loan on regulated agreement.

I had a loan with another lender which was Secured (although just on the 25k mark) pre 2008 and written on CCA paperwork and the Deed was contained in a little box on the agreement. Just a thought.

Does anyone know just how many loans were written by Northern Rock over the 25k? Could it be even more than the 152,000 they are coughing up for? I believe it's going to be a whole lot more as the product was designed to be up to 30K.

At some point, someone from NRAM or the Treasury is going to have to address this!

It's not going to go away, the problem is just going to get bigger and so is the bill along with the political emabarrassment :eek: for those who can't say they didn't know about it all.