CCA NRAM Loan & DMP Interest!?

geordiejc

On 1st Jan 2011 I entered a debt management plan and NRAM have agreed to freeze the interest on my account. Each month CCCS/Step change would send an agreed payment to NRAM which was approximately £36pm.

Therefore on 1st Jan 2011 I should not have been charged 1p interest on the balance of my account (which is correct thus far)

However when NRAM have refunded the £1039 due to the CCA loan issue, NRAM have deducted this balance from the ‘arrears’ which stood at £1322 as of Feb 2013.

The arrears is the difference between the interest bearing payment of £89 and the £36 agreed payment for the DMP.

Therefore the £1039 in interest refund has been applied to the arrears balance which includes interest when my account should not bear interest.

What i dont understand is how the hell they can get away with this? can anyone advise me on what to do next?

p.s. i love the TV show!!

geordiejc

anyone... anyy help appreciated.

geordiejc

the issue from where i stand is the interest is incorrectly charged and must be refunded under the CCA ruling. because the arrears balance includes interest they cannot refund against the arrears balance which includes interest as its the interest that must be refunded under the CCA,. does that make sense? i'm going to speak to the financial obmudsbam service about this today.

Cheers for all the replies


i'll update this once the FOS update me to hopefully help others.

Find_The_Real

The problem is when entering into a DMP the freeze on interest is purely a goodwill gesture. So if you got the refund back from NRAM regarding the unsecured loan element then it would cover the arrears and I should imagine any interest they should have charged if you were not in a DMP.

Have you written the NRAm regarding this as FOS will generally not take the matter up unless you have written a complaint about this to NRAM and they have not replied with a satisfactory response within 8 weeks.

I think there was a lack of replies because not entirely sure there is a course of action apart from write a letter of complaint but where you are in a DMP you may have to accept that they can do this as part of their T&C's.

Good luck.