MSE News: Northern Rock falsely told borrowers they had legal protection

lennonc1

I have been informed that the likes of nram and debt management companies etc watch these forums avidly. I had wondered how they managed to stay one step ahead of any action taken!! Mmm!

**nram action group is almost ready**

Please pm and i will give link to it. Ta

lennonc1

Hi guys, interesting article on ukar for loans over 25k.
They have put money aside for in case they are taken to court, the judge would probably rule to repay interest while in breach and court costs etc.
Good news -
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.

claret_mike

You are clearly so wise Procdolydin1985 in that you profess to know what 99.9% of people have done.

What about people that consolidated CCA protected debt on the basis that they could then overpay.

I guess you are against Martin Lewis for standing up for consumer rights?

What is the difference with individuals wanting to stand up for their rights?

Unfortunately life is not black and white or as simple as some would like us to believe. At least you know what is really happening though

[Deleted User]

claret_mike wrote: »

You are clearly so wise Procdolydin1985 in that you profess to know what 99.9% of people have done.

It's a spammer. You already replied to the original poster who actually said this towards the start of the thread.

shaneym

Hello guys, was wondering if anyone could give me any advise on the matter. I took out a loan in 2005 with NR (less then £25,000). I received the letter before christmas saying I might be eligible for a refund, and today I have received a new letter saying that I am not eligible as the loan was for home improvments and these are excempt from CCA. Is this correct ?

I have had a look on google but cant seem to find an answer. Nowhere can I see that home improvment loans are not covered by CCA. My paperwork for the loan says it is covered by CCA. Basically, my question is, are they lying to me and do I have a leg to stand on to try and get anything back. Is my paperwork not proof enough ?

Cheers

lennonc1

They are talking rubbish, I have read the cca act, not that I understand it much but they are at it, send your complaint to the fos straight away.
Make sure you have all the information you need, if not send SAR request and get it all.

shaneym

Thanks a lot.

lennonc1

Were your loans secured or unsecured?

lennonc1

FOS update -

Senior adjudicator called to let me know things were moving fast as there has been so many complaints, some will be grouped together as the outcome will be the same, all complaints with nram will be looked at in their own merit then passed to a team particular to the complaints. He wanted to give me his number as no time for letters etc.
As far as i am aware mine is being looked at individually and if moved to a 'group' he will be in touch!
I'm not too sure if things moving as fast is a good or bad thing!
As soon as I have more info I'll be back!!

Alfie04

lennonc1 have you any update with this?

I've just got a letter this morning saying that my redress is nearly £3,000 and would prefer this back in money to my current account.