Northern rock loan over £25,000

shellyk6666

Does anyone know the time limit for referring to FOS?

shellyk6666

shellyk6666 wrote: »

Does anyone know the time limit for referring to FOS?

Sorry, found it now - 6 months from receiving the final response to my complaint to NRAM. I've just not gotten round to sending the stuff off yet and had a sudden panic that I might be too late!

Mthomas1986

Right, I have just received a response from NRAM just within their 8 week window relating to my £30k unsecure element of my Together mortgage.
Signed in April 2007, my contract clearly states that the loan is regulated by the CCA 1974.
NRAM have now told me that this is "not" the case, an error has been made, but they are not willing to provide a redress of interest. They are sorry for any uncertainty this has caused me. I received a Mortgage statement this month, the unsecure loan as a sub account is still titled as a CCA 1974 regulated loan. What to do?? I have sent my complaint to FOS anyway as it is nearly 8 weeks.

Chrisb80

Evenfields wrote: »

Interesting, been looking through NRAM's Annual Results, has anyone else spotted this (or you all not as sad as me)


40. Contingent liabilities
The Consumer Credit Act ('CCA') regulates certain classes of mortgages and loans, including the unsecured element of the Together mortgage product. As detailed in note 29, the Group has not complied with the requirements of the CCA in respect of some documentation provided to certain customers with CCA-regulated loans and has, therefore, made a provision for the Group's best estimate of the cost of providing remediation to those customers. The Directors believe that the loans covered by this provision are the only loans which are entitled to remediation under the provisions of the CCA. If any customers were to make a claim against the Group in respect of other loans, the Group would incur costs in defending its position, and should any such claim result in proceedings which are pursued through the courts and which succeed, the Group could be liable for remediation to those claimant customers and potentially other customers with the same circumstances. No claims have been received from any customers in respect of loans which are not CCA-regulated and no provision has been made.

So here is their recognition that despite their continual brush offs, they just might have a big problem! Also 'best estimate' so the 270 million was an estimate, I reckon it's going to be a lot more. Someone needs to buy NRAM a calculator, a calendar and a copy of the Consumer Credit Act!

Yes, I think someone picked up on this as the same message was contained within the UKAR annual results statement. It goes on to say that they have sough legal advice and on the back on this are telling us (over £25k loan customers) that we have no claim. The FOS adjudicator that I have been speaking with has also seen the statement so they are aware.

NRAM have obviously weighed up their options; either pay millions to us now or face courts costs (if it goes that far) at a fraction of potential redress owed (a worthwhile gamble?!). I think that maybe they thought people would not bother taking this further and accept their final decision. Plus, its not like they have a reputation to protect (loss of market confidence, customers etc) so they can treat us how they like as we are stuck with them!!!

Mthomas1986

I have really looked into this now.

If you make a complaint to NRAM what ever you do, don't refer to the redress of loans less than £25,000. All they will do is say that you are not entitled to what those customers had.

I would and now will myself keep it simple:

In 2006 the CCA regulation was updated to change a maximum threshold of £25,000 to "No upper limit". However, this regulation did not come into force until 6th April 2008. So any agreement over £25,000 signed before the 6th April 2008 is not regulated by the CCA 1974.

My agreement was signed on the 27th April 2007, and is clearly headed with "fixed sum loan regulated by the CCA 1974". Back then it couldn't have been regulated so the contract is incorrect at date of issue.

NRAM have also written to me stating that any loans for more than £25,000 before the 8th April 2008 are not covered by the Act. (Thats black and white in my eyes).

So anyone else in this situation??

Mthomas1986

Further to my post above here is a snipet from the OFT140 guidelines as of 2010:

2.1 A consumer credit agreement is an agreement between an individual
(the debtor) and any other person (the creditor) by which the
creditor provides the debtor with credit of any amount.*

* Section 8 of the Act. The previous financial limit of £25,000 was removed by the 2006
Act with effect from 6 April 2008.

djc77

Respnse to Mthomas86, I am in exactly the same boat. I was sold a product in 2006 and one of the main points for me was that the loan was regulated by the consumer credit act, after all, if someone offeredI me a loan for £30k with terms and conditions on the back of a fag packet I would laugh in their face. So I took the loan from one of the biggest mortgage providers in the country being fully protected, FSA for secured mortgage lement and CCA protected for the £30k, and now I find I am not protected. I don't want a refund of interes, I want a declaration that they cannot charge me interest as the loan was misold. I ahve paid back more than my £30k borrowed so we are quites. I ahve had the final response from NRAM saying I am not covered. I have contacted FOS and now have the forms to send. I will keep trying!!!

Jim4646

I have had a letter from NRAM stating the much quoted para roughly saying there were references in your paperwork and following statements referring to the CCA, but this was an error on NRAM's part and we apologise for any convenience caused.

This was proceeded by your agreement clearly states your loan was for home improvements and these are not included in the changes to CCA???

In one breath they clearly state we have cocked up and in the next say it doesn't affect you as your loan was for home improvements (I used it for a conservatory), they go on to direct you to a Q and A attachment to the letter sent out with no clear reference to why home improvements are excluded and give you a website link that is about as much use as a chocolate teapot with no clear info on it at all.

Surely documentation has to be spot on. I have asked for chapter and verse from Customer Relations as to where in the CCA it states that home improvements are exempt from CCA regulation and asked them to state if they are abiding by their recent letter containing the above to clearly endorse it final response so I can get a complaint off to the Ombudsman.

I always thought if the paperwork work is not 100% the contract is flawed.
Any advice or letter quotes/templates anybody in the same boat can offer?

IainHL

I am not aware of anywhere in the CCA that loans for home improvements are excluded. From your description it sounds like you have a standalone secured loan under £25k, so if the agreement has all the appropriate CCA wording then it is regulated. If they have then made the same mistake on your statements I would expect that you too are entitled to redress.

I think you are doing the right thing getting NRAM to confirm their final response, and then take it to FOS. You will just need to fill in the FOS form stating your complaint and why you believe you are entitled to redress.

Bobster78

URGENT- Has anyone had a repsonse from FOS yet? I have yet to see a post confirming a repsonse from FOS yet.