Let's talk about the NRAM loyalty rate scam

ClaretMatt_2

Hi all

I'd really like to explore what can be done about the NRAM loyalty rate scam where they lower your rate from the SVR by 0.01% to avoid having to give you the loyalty rate.

I know they are using a get out clause to make it "legal" but I see this as a scam, a con and outright theft.

A classic example of the customer being treated unfairly surely?

Let's have a brain storm and see if we can't form a super complaint to the FSA/FOS

[Deleted User]

Well, it won't be a scam or outright theft, but if you give a few details about it, I'm sure we'll be happy to kick it around for a bit.

poppasmurf_bewdley

ClaretMatt wrote: »

Hi all

I'd really like to explore what can be done about the NRAM loyalty rate scam where they lower your rate from the SVR by 0.01% to avoid having to give you the loyalty rate.

I know they are using a get out clause to make it "legal" but I see this as a scam, a con and outright theft.

A classic example of the customer being treated unfairly surely?

Let's have a brain storm and see if we can't form a super complaint to the FSA/FOS

It would be interesting to know what you are talking about.

downhiller

http://www.nram.co.uk/en/customers/mortgages/existing-mortgage-customers/standard-variable-rate.aspx

Basically, NRAM have a "loyalty rate" that knocks 0.25% off their SVR after you've held a mortgage with them for 7 years.

However to qualify for it you can't be on any "special" deals. It appears as though everyone is on a "special" deal as almost everyone has a clause in their mortgage that knocks 0.1% off the SVR after a set period thus making that a "special" deal which excludes you from the advertised loyalty rate reduction of 0.25%

Peelerfart

Must admit I haven't got a clue what the OP is talking about either.

Hopelessly_Hopeful

Classic case of legalised robbery

Good luck with the thread, hope you get some sensible contributions

HHx

pheonixrising21

OP, can you not call them and tell them you don't want their 0.1% special rate? That way you could be bumped back onto the SVR and then qualify for the loyalty rate?

blackandwhitebunny

You also don't qualify for the loyalty rate if you have a together loan and mortgage together.

ClaretMatt_2

Sorry, I missed the core of my original post out completely...

Basically, upon being a customer of Northern Rock for 7 years, you should be entitled to a rate discount off the SVR of 0.25%. To avoid having to do this, they gave everyone a 0.01% discount as customers already benefiting from "special rates" such as this minute discount are not entitled to the loyalty rate. So they've moved to goalposts once again in order to fleece people who are trapped in one of their products with little prospect of escape in the near future (I can get away from them in two years, but not before)

I think this type of activity is classic "treating the customer unfairly"... But I'd like to throw it open to the floor for discussion.

For clarity, I'd like to point out that I don't blame anyone for having taken this mortgage on the first place but what I am angry about, and rightly so IMO, is that they keep on kicking people in the balls with the high SVR and underhand tactics like this. They are making a fortune at 4.79% when the base rate is 0.5%. I know that they will not give a competitive rate but when the Bank of England finally start pushing the base rate up an awful lot of otherwise solvent people (negative equity aside) will find themselves in big trouble as the monthly payment starts to creep up and up.

I think the treatment of NRAM customers is and should be, a national scandal

lizards

Am also interested in replies as we have the same situation. I queried it with them a year or so ago, and at the time the person I spoke to agreed I should be on the loyalty rate and said she'd look into it.. but then sure enough I got a letter a week later explaining about the "special" rate and that was that. I found it interesting that their front line telephone operatives are unaware of it though, unless perhaps she was really new.

darlingdaisys

I queried it with them and got told because I have 1 late payment on the account,the clock gets reset with that! So apparantly its 7 years from the date of the late payment!
Yet according to the website, it states the account shouldnt have to be in arrears! Nothing about late payments (mine was by a day)