Northern rock loan over £25,000

tony863

I've just found all this information about NRAM potentially miss selling the unsecured loan amount but I'm still finding it quite confusing to understand.

I'm another victim of the together mortgage saga, borrowing £181,000 of which £22,000 out of the agreed loan amount of £30,000 was borrowed to pay other fees and debts etc...

I understand that there are people trying to challenge the legality of the loan based on the fact that loans over £25k were not governed by the CCA and that some of us borrowed under £25k despite being originally agreed on £30k.

Two questions...

1. Am I right in saying that the FOS are pretty much rejecting all claims of mis sold products at the moment and no one is receiving any form of payout/compensation/repayment?

2. Is there anything new that I need to be aware of without reading through 34 pages of this thread? I.e. Has there been any recent rulings, developments etc.. That we should be aware of?

I'm currently in the process of looking at remortgaging. My LTV on my mortgage is within reason but my unsecured loan needs to move. I was just going to apply for a new loan elsewhere tbh. Any thoughts or advice would be appreciated, thanks

Lippyx

tony863 wrote: »

I've just found all this information about NRAM potentially miss selling the unsecured loan amount but I'm still finding it quite confusing to understand.

I'm another victim of the together mortgage saga, borrowing £181,000 of which £22,000 out of the agreed loan amount of £30,000 was borrowed to pay other fees and debts etc...

I understand that there are people trying to challenge the legality of the loan based on the fact that loans over £25k were not governed by the CCA and that some of us borrowed under £25k despite being originally agreed on £30k.

Two questions...

1. Am I right in saying that the FOS are pretty much rejecting all claims of mis sold products at the moment and no one is receiving any form of payout/compensation/repayment?

2. Is there anything new that I need to be aware of without reading through 34 pages of this thread? I.e. Has there been any recent rulings, developments etc.. That we should be aware of?

I'm currently in the process of looking at remortgaging. My LTV on my mortgage is within reason but my unsecured loan needs to move. I was just going to apply for a new loan elsewhere tbh. Any thoughts or advice would be appreciated, thanks

Basically, if you borrowed over £25k, your loan is not regulated by CCA 1974, even though it states at the top that it is. This is because the CCA 1974 act, at the time, only covered loans UNDER £25k.


I personally have made a complaint with NRAM, and its still with them, 15 wks later. I have tried the FOS route, but they are rejecting all claims, saying "you would have taken out the loan, even if you knew it wasn't regulated" (rubbish, I was told it WAS regulated, so why would I question it?!!) I have gone to my local MP, who told me to "embrace the loan, and pay it off", and even a solicitor didn't want to entertain the idea.


People who have been affected need to start the claiming process. Write a letter to NRAM, wait the 8 wks, then raise it with FOS, wait for them to reject it, and then go back to NRAM and hassle for a simple answer to the question "is my loan regulated?" I pretty much guarantee they won't be able to answer Yes, and they will put it across to their specialist team, who are dealing with this question.
Also, ask them for their "Credit License number". They won't have one now, as they no longer lend, but they should have had one when they were lending... I am still waiting for this number!!


I have recently received another letter, asking me to give them another 4 wks, as they still don't have an answer... They will be getting a call from me today!!!


Good luck!!

Dave-80

I just found the UKAR NRAM Annual report to 31st March 2014.
Interesting notes in Section 39 of the report about going to high court and clarity response due in 1 year regarding the CCA documentation for loan over £25k:

39. Contingent liabilities
The Consumer Credit Act ('CCA') regulates certain classes of mortgages and loans including the majority of the unsecured
element of the 'Together' mortgage portfolio. As detailed in the Group's 2012 Annual Report and Accounts, NRAM did not
comply with the requirements of the CCA in respect of some documentation provided to certain customers with CCA
regulated loans. NRAM, therefore, made provisions during 2012 and the current period, for NRAM's best estimate of the cost
of providing remediation to those customers (see note 28).
Where NRAM made unsecured loans for sums in excess of £25,000 prior to 6 April 2008, the documentation incorrectly
stated that these loans were also regulated under the CCA. Having considered all the information available to us, including
legal advice and favourable adjudications by the Financial Ombudsman Service, we are of the view that such loans are not
covered by CCA regulation and, therefore, do not require remediation or a provision. However, to provide clarity for
ourselves and our customers, NRAM has commenced declaratory proceedings in the High Court to determine whether
customers who took out such loans are entitled to the same or similar rights and remedies as those customers who took out
loans that were regulated under the CCA. We expect this clarity by 31 March 2015. If the Court makes a decision adverse to
our position, then NRAM would consider the impact and could be liable for remediation to these customers. Any such
remediation would be likely to be through adjustment to customer balances. The current exposure, as at 31 March 2014,
resulting from this uncertainty, together with any other potential actions following a judgement, falls within a range up to an
estimated maximum of £240m.

Lippyx

So why does no one tell you this when you call them for an answer! I have never had an official letter about this at all! Such a sham of a company!

Bigjazzy

Hi All

Just found this thread.

In my case I had the 125% loan with the £30,000 CCA regulated loan document.

In 2009 when I went through financial difficulty Northern Rock went to court and got a Decree (Scottish equivalent of a CCJ). I never knew about this as they wrote to my old address. As it was uncontested the judge granted the decree.

Just got hold from the courts the Writ submitted by NR's solicitors and in that it states I had a Consumer Credit Loan and that I fell behind and had arrears. ALso in the Writ they confirm a default was served!

I only found this out earlier in the year and wondering how to get this ccj/decree over turned.

Is there anyone else in the same boat as me?

Lippyx

Unfortunately, it's not their fault if you moved, and they send a letter to your wrong address. Wrong, but true.
Saying that, I too have defaulted (long story, but involves an ex who told me it was paid off, but carried on paying it and then stopped) Now, technically, as the loan is not covered by the CCA, they can't in force the agreement, and if you default, they can't really do anything, but obviously, it's never that black and white!
I have been asking them for proof that my loan is regulated and as yet they haven't shown me anything (I first asked them about a year ago!)

Whilst starting a complaint about them constantly sending me threaten letters, and currently going through FOS, it turns out they have been charge me double what they should have been each month and have been for 2 years! They tried to offer me £750 for the "inconvenience" but have told them I want all that they have over charged me, returned to my bank and NOT taken off the debt, which is what they will try to do. It's still with FOS at the moment.

I also found out that in March 2015 they will be deciding on whether the people who had loans over £25k are due a refund due to the CCA muck up, but its looking promising as they have already estimated how much it's going to cost them.

If I were you, I would call them and open a complaint regarding the lack of CCA and then it's a case of hassling them and keeping records and let them know you are on to them!! It won't be easy and its a long process, but hang on in there!! x

Bigjazzy

Just came across this Deloitte report highlighting errors by NRAM. Can anyone make heads or tails of what this means in layman terms for anyone with loans over £25,000?

http://www.ukar.co.uk/~/media/Files/U/Ukar-V2/Attachments/press-releases/project-spice-deloitte-summary-report.pdf

worth1g

Hi everyone,
I am in a similar position to most of you and have been reading through this forum. I will be speaking to NRAM re making my complaint also and will keep you posted of the response although i think we all know what it will be!

Lippyx

Update so far.... FOS took on my complaint regarding the threatening letters and chasing arrears (even though I have been paying the set amount every month!) NRAM came back with a £750 offer of good will, and said they will contact the credit agencies to correct my credit rating, and "oh by the way, you have actually been paying £100 more a month than you actually needed to over the last 2 years!" Needless to say, I have rejected their "kind" offer! I think 2 years of stress, threaten letters, court visits, a screwed credit rating and loss of money is worth more than £750!!


But somehow they have amalgamated this complaint and the one I have with them about the CCA and are now saying the £750 offer is for both complaints....


They have admitted in a letter the loan is NOT regulated, but when I asked them how they managed to offer a loan as regulated and have it written all over the agreement that it is regulated when actually it isn't, I got told "sorry, this was just a mistake..." !!!!!!!???


I asked to speak to complaints, but they were busy (as usual) and I should get a call in 48hrs.... I won't hold my breath!!




Can someone tell me how this company is still standing........ Oh yeah, I forgot, tax payers money!!

IainHL

Dave-80 wrote: »

I just found the UKAR NRAM Annual report to 31st March 2014.
Interesting notes in Section 39 of the report about going to high court and clarity response due in 1 year regarding the CCA documentation for loan over £25k:

Well done for finding that Dave-80. Now to search out how to try and find High Court listings and adjudications!