Northern rock loan over £25,000

djc77

Website sounds a good idea. Do let us know the address etc ASAP. I will he happy to dedicate time to waste in forcing NRAM to answer their critics. Waiting for a " bad news day" to see if they issue something. I am still very cynical about their original timing, 18th December! Lots going on at that time of year....

dodge1979

There is an article on website credit today regarding ukar results, saying they may of put some funds aside for us 25k+ , if it was taken to court.

lennonc1

Do share that link for the article if you can please as all this can be added to website. It is www nramactiongroup org uk
If I add link it will get removed so I've obviously removed the 'dots'
Thanks
C

lennonc1

Ok found that article -

Nationalised lender UK Asset Resolution increased its repayments to taxpayers by £1.2 billion in 2012 despite a redress charge of £271m on its unsecured loan book.
UKAR Group, which holds the “bad books” of nationalised lenders Northern Rock and Bradford & Bingley, paid £4 billion to the Treasury in 2012, up from £2.8 billion the previous year.
This came despite reimbursing £271m to consumers for interest charged on unsecured loans issued by Northern Rock which breached the terms of the Consumer Credit Act (CCA).


The charge was first announced by the chancellor in December 2012 and relates to defects in letters and statements issued for loans of under £25,000 issued in 2008.
In a results statement, UKAR chief executive Richard Banks said: “Although no customer has suffered any financial detriment, we have commenced an exercise to correct the documents and statements and adjusting customers’ outstanding balances in respect of the interest amount.”



Some customers have taken loans over £25,000 with CCA documentation, but as this falls outside the limit of the CCA, UKAR has said it will not reimburse customers for this.
However, the lender said it was possible this could be contested in the courts in future and has made a contingent liability available to cover this.
It is not yet clear what the liability figure is, but the UKAR results reveal a £5.9m increase in liabilities in 2012 to £169.8m, and a £12,6m increase in provisions to £227.6m in the same period.

So basically take them to court over it, you will be awarded your interest and costs etc. They have this money put by as they dont know what the courts will say on this.

Options are either class/group action or individual action. However this can be represented by a consumer group like Which, I am in talks with them so will see what they say about this also.

Chrisb80

Lonnonc1 - great find, I couldn't find the article!

I am 6 weeks into my 12 week wait for the FOS so will be interesting to see how this progresses. They should be able to make things progress?!

And by UKAR setting aside money to cover the liability then they must also feel a little uncertain as to the correct outcome. Surely this action in itself is an admission of fault?!

Well, I'm in no rush so happy to see this one through. How do we go about organising class/group action if no avail with the FOS?

dodge1979

Is it worth contacting the new FCA?

bigadaj

Chrisb80 wrote: »

Lonnonc1 - great find, I couldn't find the article!

I am 6 weeks into my 12 week wait for the FOS so will be interesting to see how this progresses. They should be able to make things progress?!

And by UKAR setting aside money to cover the liability then they must also feel a little uncertain as to the correct outcome. Surely this action in itself is an admission of fault?!

Well, I'm in no rush so happy to see this one through. How do we go about organising class/group action if no avail with the FOS?

There's no implication of fault in financial provision for potential claims. Companies are required to include for this within their accounts as the potential liability becomes known. In many cases they may make an assessment of the liability, so if the liability is potentially huge, but the probability of success low, then they still might have to allow a fairly big liability provision.

st99015207

All

I recently wrote to NRAM respectfully suggesting that my £30K (Together) loan may have been mis-sold as being regulated by the CCA when in fact it wasn't. They have replied in the last few days stating fairly tersely that they are aware that the docs were wrong, but have no obligation to do anything further, and that they would certainly not be paying refunds of interest or providing compensation.

I have today started a complaint with the FOS. I can't imagine much will stem from this, but I will update you when I hear back.

I cant help but think the solicitors and mortgage broker must also share some degree of responsibility with regard to this situation. Both of these parties are paid a fee to provide professional guidance on these matters, as most people simply don't have the knowledge required to fully understand the technical language used in any form of contract, especially ones that are incorrect to begin with.

Many thanks

Bon33

I have just rang NRAM (I am an ex-customer) and they ad advised the same old "we are dealing with existing customers first..." but then she said "from looking at your account you don't appear to be one of the accounts affected as your loan wasn't covered by the CCA" so I said "Well that is strange I have a big blue document in my folder saying this loan is covered by the CCA...." to which she replied "Oh I must be wrong then!"

NO !!!!!! SHERLOCK!!!!

lennonc1

Chrisb80 wrote: »

Lonnonc1 - great find, I couldn't find the article!

I am 6 weeks into my 12 week wait for the FOS so will be interesting to see how this progresses. They should be able to make things progress?!

And by UKAR setting aside money to cover the liability then they must also feel a little uncertain as to the correct outcome. Surely this action in itself is an admission of fault?!

Well, I'm in no rush so happy to see this one through. How do we go about organising class/group action if no avail with the FOS?

Have a look at this thread on here - https://forums.moneysavingexpert.com/discussion/4491521

A few of us from here have started a website for an actin group which can include all problems you have with nram, don't think I'm allowed to post this link but www nramactiongroup org uk -
Sign up as we are now in talks with various broadcasters so hopefully we can be heard and they do something about it.
Remember they will always discredit your complaint but doesnt mean they are right by court of law.