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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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  • GhIFAGhIFA Forumite
    619 posts
    I my financial advisor had explained that the loan was unregulated, I would have wanted more information on this.
    Being unregulated - does this mean Northern Rock can do what they like? Change interest rates when they like? Not send out statements? Demand more money?

    Did people ask questions at the time about regulation, protection etc - It works both ways?. I use the services of other professionals/advisers for areas that I'm not qualified in - However, I also do my own research, know what my rights as a consumer are etc before entering into any agreement with them. I find it strange that people don't do the same in cases like this, particularly where large sums of money are involved.

    As I said earlier, NR may well have made an error here, potentially a big one, and if they have they will have to make it right.

    The point I am trying to make is that there are a good number of people here chancing their arm, claiming they were mis-sold off the back of comments they have heard the last few days. If these issues had been so important to them they would have explored them at the time, but they didn't and now at the whiff of some money (when they have not suffered any loss through this issue) suddenly cry foul play, which everyone has to pay for - It's a little distasteful if I'm honest.
    I am an IFA. Any comments made on this forum are provided for information only and should not be construed as advice. Should you need advice on a specific area then please consult a local IFA.
  • From reading both threads running the same story I think that this oversight by NRAM has really highlighted the dis-satisfaction most people have with the products they have been sold.


    The CCA is a red herring as until a few years ago most people did not have a clue what a CCA actually was for.With the advent of the PPI scandal more people want to jump on any bandwagon and try to attain a windfall.
    Through a broker we unfortunately took out a 5 year fixed rate mortgage with NRAM at 5.5% which was more than other lenders, but at the time this was a rate we were happy with.
    The financial collapse happened and mortgage rates came tumbling down - NRAM though still have higher rates than most.
    As mentioned by others when NRAM acquired the "toxic" debts the potential to look elswhere was restrictive because of the way they were set up.
    This I think is the main issue – the majority of people with NRAM are trapped and will be so for a very long time.

    It appears to me that we are in some way being punished for the financial collapse and are being used to recoup some of the losses.
    Personally I have had 3 mortgages/remortgages/loans with Northern Rock and had never had any problems.
    Since NRAM took over however we have had lots of problems such as- double payments taken out,lack of communication reply,telephone harrassment due to being 2 days late with a payment,rude unsympathetic advisers, etc etc
    We used to be able to access our account online which we now can’t do and to this day we are still not sure why our mortgage was assigned to NRAM as we have no other financial debts.
    I can fully understand why people are hoping that they receive some of the money back as they are probably just like me and want to get out of this mess as soon as they can.
  • GhIFA wrote: »
    Did people ask questions at the time about regulation, protection etc - It works both ways?. I use the services of other professionals/advisers for areas that I'm not qualified in - However, I also do my own research, know what my rights as a consumer are etc before entering into any agreement with them. I find it strange that people don't do the same in cases like this, particularly where large sums of money are involved.

    As I said earlier, NR may well have made an error here, potentially a big one, and if they have they will have to make it right.

    The point I am trying to make is that there are a good number of people here chancing their arm, claiming they were mis-sold off the back of comments they have heard the last few days. If these issues had been so important to them they would have explored them at the time, but they didn't and now at the whiff of some money (when they have not suffered any loss through this issue) suddenly cry foul play, which everyone has to pay for - It's a little distasteful if I'm honest.


    "Did people ask questions at the time about regulation, protection etc - It works both ways?"

    Why would they need to ask questions their paper work clearly states regulated by the CCA?

    "The point I am trying to make is that there are a good number of people here chancing their arm, claiming they were mis-sold off the back of comments they have heard the last few days. If these issues had been so important to them they would have explored them at the time,"

    Until the last few days people were under the impression their loans were regulated. It is the current situation that has highlighted the fact that perhaps they are not. I dont think it's unreasonable to ask what this actually means for people with loans over 25k supposedly regulated. Why are people chancing their arms? If you had a loan with the exact same terms as someone else and they were being an offered a refund and you not would you not question why?
  • We got our letter yesterday so it's some good news for us as we took out a Together Mortgage in Oct 2007 and at least this little sum will go towards getting that loan down. Every little helps I suppose. Just gutted that we rushed into getting the house as it was only a couple of weeks later that the whole NR bust went public. We're in a manageable mortgage payment wise, just, but I'm not sure how long it will take to actually break even on it with regards to the house value. Zoopla's estimate is frightening :(
  • ger_ryan22 wrote: »
    We got our letter yesterday so it's some good news for us as we took out a Together Mortgage in Oct 2007 and at least this little sum will go towards getting that loan down. Every little helps I suppose. Just gutted that we rushed into getting the house as it was only a couple of weeks later that the whole NR bust went public. We're in a manageable mortgage payment wise, just, but I'm not sure how long it will take to actually break even on it with regards to the house value. Zoopla's estimate is frightening :(

    Is your loan over £25K?
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • GhIFAGhIFA Forumite
    619 posts
    "Did people ask questions at the time about regulation, protection etc - It works both ways?"

    Why would they need to ask questions their paper work clearly states regulated by the CCA?

    "The point I am trying to make is that there are a good number of people here chancing their arm, claiming they were mis-sold off the back of comments they have heard the last few days. If these issues had been so important to them they would have explored them at the time,"

    Until the last few days people were under the impression their loans were regulated. It is the current situation that has highlighted the fact that perhaps they are not. I dont think it's unreasonable to ask what this actually means for people with loans over 25k supposedly regulated. Why are people chancing their arms? If you had a loan with the exact same terms as someone else and they were being an offered a refund and you not would you not question why?

    But as the legislation stands you haven't got a loan with the same terms as anyone else - under £25k is regulated, over £25k is not. You have documentation that looks like it is has been put on incorrect paper, which is different. Until such point as a legal ruling has been made that this confers the terms of the regulation on you then that is the situation - and discussion of this issue previously on other forums seems to suggest that there are very few legal experts that want to get involved in challenging this.
    I am an IFA. Any comments made on this forum are provided for information only and should not be construed as advice. Should you need advice on a specific area then please consult a local IFA.
  • My loan was originally £26,400 in 2004, however by 2008 the outstanding was around £23k... Does this matter or is it just dependant on the original sum borrowed?
  • Fizzy_Fish wrote: »
    I've gone through all of the paperwork (original agreement was in 2004), and the consistent message is that the unsecured loan is CCA regulated, with nothing specifying to the contrary:
    • Original credit agreement heading 'Credit agreement regulated by the CCA 1974'
    • Credit agreement signature box 'This is a credit agreement regulated by the CCA 1974. Sign it only if you want to be bound by its terms'
    • On back of initial agreement 'Your rights - The CCA covers this agreement and lays down certain requirements for your protection which must be satisfied when the agreement is made. If they are not, we cannot enforce the agreement against you without a court order. The Act also gives you a number of rights. You have the right to settle this agreement at any time by giving notice in writing and paying off all amounts payable under the agreement.'
    • Letter from NR in 2009 'The new CCA 2006 requires us to provide a statement to each customer party to the mortgage. We will now provide you with duplicate copies of your statement in the same envelope' (i.e. NR continue to believe themselves that they lent to us in a way that is bound by this legislation!)

    That's great, thanks. It seems to me like this will run and run. All of us on here will want the same treatment as those with loans under £25k as we were signed up and given protection of the CCA, it maybe that they have to give protection on the 1st £25k of the loan.
  • Thinking about it more, I want the loan written off !.

    In an age of mis selling scandals, surely if a bank incorrectly signs someone up for a loan on CCA protected terms they would have to stand by it or cancel it ?
    Surely they cannot decide later they are not giving that protection to an unaware customer?

    If they say this to me I will say they have breached the contract and demand back all payments made to them.
  • jimbo5661 wrote: »
    My loan was originally £26,400 in 2004, however by 2008 the outstanding was around £23k... Does this matter or is it just dependant on the original sum borrowed?


    Original sum borrowed.
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