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

zorgan

Alfie I 100% agree too, it's a mistake they made so they are just taking off the amount owed? which in fact is more convenient to them?

you'd think becuase of the error, they would be held accountable not only to pay back in a cheque the amount wrongly charged, but compensation for their error. "they broke the rules" so therefore should pay for their mistake, financial companies always seem to be the ones who get away with stuff.......mind you I can see the UK being in a bigger state than it actually is in if it wasn't for the tax payer bailing out the banks in the first place.

Alfie04

Im just trrying to read up on all of this and tempted to make a complaint and then to FOS

lennonc1

Hi there, my complaint to the fos has been rejected and so have many hundred more. I have not accepted this so ombudsman have to re-investigate. They say nram have consulted with regulators and say this is best way to deal with it. No I don't think so, but will wait and see what they say.

This is good news - we have been helping a fellow member with his repossession fight with nram, please see below.

NRAM denied eviction warrant over contempt of court failure to prove entitlements.

In Lancashire today NRAM PLC (the UK Treasury owned toxic mortgage debt collector) were denied a warrant to evict a tax-paying mortgagor who, after falling into significant arrears became unable to pay their high interest rates and unable to move to a new mortgage deal due to his self employment status losing status after vast rivers of credit from the economic run up to 2007 dried up. This is a landmark victory and offers new hope for mortgagors up and down the country who have fallen into arrears or unable to meet payments of unprovable mortgage debt.
Initially NRAM issued the defendant a notice of eviction without a prior repossession hearing but the defendant was advised of his right that his case could be heard in court. After a second hearing, NRAM were denied the warrant to evict for failing to provide evidence of their entitlements including their rights to repossess.
The court tool a dim view of NRAM's failure to comply to the judges order. The warrant for eviction was suspended indefinitely and NRAM has been issued with a further court order to provide full evidence of their entitlements within 60 days. The suspension of eviction was indefinite and unconditional. The defendant mortgagor was also ordered to continue making "Contractual Monthly Subscription" payments for a set number of months though the nature of NRAM's claim of entitlement to CMS payments remains unclear.

This is a landmark case and the first case where a major UK lender has been stopped by a magistrate for contempt of court and failing to provide evidence of their legal entitlements. The law was changed decades ago but until now no defending case has been clear enough to prevent unscrupulous lenders from crushing mortgagors already deeply in debt and unaware of their own rights and entitlements. Today's verdict indicates a seismic shift in awareness by both courts and mortgagors and the message to the banks is clear.
NRAM have 60 days to prove their entitlement or they will have to relinquish any future claims or rights to the mortgagors property (his home for the last 10 years where he dwells with his wife and two children).

The think-tank responsible for creating the defendants case is compiling a detailed account of the two hearings and the events that led up to the indefinite suspension of eviction by the UK's largest debt collectors - NRAM PLC.

claret_mike

Can you explain what you mean by "unprovable mortgage debt"?

What would NRAM need to prove "evidence of their entitlements including their rights to repossess."?

lennonc1

There is usually 3 parts to a lawful uk mortgage, most banks ect bypass the 'consideration' part and the rest we are looking into but can't really say too much until we have had some information clarified as I don't completely understand it all myself yet!

Kat76

After NRAM's CCA regulation breach, it paid out interest to <£25K loan customers with existing loan accounts back in December 2012. As our loan had already completed, we didn't get a letter about this and it was only the MSE newsletter that alerted me to this matter. I rang NRAM and was informed that letters would be going out to all those with "completed" loan accounts in June 2013. Needless to say this never arrived. I chased them by telephone and letter, and amazingly last week a letter dropped through the letterbox to confirm a refund of ~£3K would be being issued as a cheque shortly.

If anyone out there had a completed loan and thus still hasn't had the due compensation / interest returned, chase them - it's worthwhile!!!!

:money: Thanks Martin and the gang for putting me on to this one!

tracy12050

Dear All

Please excuse my ignorance and any misunderstanding on this matter.

You all or some seem to be receiving communication in regards to this issue and also seem to know what your talking about so may I ask a couple of questions.

1) Does this issue relate to customers who took out a NR mortgage & then took out the unsecured loan, OR does it encompass those who just took out a unsecured personal loan?

2) The discussion is all bout those with loans below OR above £25k, where does an actual loan of £25k fit as its neither above or below?

Thanks :xmassmile