Nram - when will they wind up?

Flooz

Good morning people.

Pretty much as the title asks:

OH has been paying £10 per month towards an unsecured loan he had with Northern Rock. Our calculations show it'll take many many years to pay, which leads us to the question:

How long will the Gov let nram run for before it winds them up? OH has a feeling that a maximum time was disclosed when they set it up, and we assume that eventually, once a certain amount of debt has been recovered, it will not be financially viable to continue paying salaries, etc, for a small recovery?

Does anyone have any idea please?

[Deleted User]

No idea. But it would make no difference either way as to your owing the debt though. It would be passed to administrators or whoever then buys the debt and you would need to pay them.

Apples2

Have you considered increasing your £10 per month donation at any time during the "many years to come?"

Reduced payments are supposed to be a short term agreement until you get back on your feet, not to give you an opportunity to ignore that pesky ball and chain.

gb12345

Apples2 wrote: »

Have you considered increasing your £10 per month donation at any time during the "many years to come?"

Come on Apples, you should know better than that.

Why increase their payment when at X date in the future they think they can walk away from their responsibilities.;)

DevCoder

Come on GB, we all know that in the future you will be able to forget about your debt and it will be wiped out/written off.

We all die at some point.

In response to the OP, the debt will get passed to administrators or any company which buys the remaining debt as a package from NRAM.

You don't seriously think that it just gets written off? The companies/banks just sell off (bad) debt as packages to other companies/banks.

Peelerfart

OP just to clarify, is that £10 every month?

opinions4u

Flooz wrote: »

How long will the Gov let nram run for before it winds them up?

Many of the mortgage assets were interest only. Their longer mortgage term was 40 years.

So they'll still be going in 30+ years time. Or at least the accounts will be.

OH has a feeling that a maximum time was disclosed when they set it up, and we assume that eventually, once a certain amount of debt has been recovered, it will not be financially viable to continue paying salaries, etc,

Theyd sell the debt on.

Exile_geordie

opinions4u wrote: »

Many of the mortgage assets were interest only. Their longer mortgage term was 40 years.

So they'll still be going in 30+ years time. Or at least the accounts will be.

Theyd sell the debt on.

Also who is to say what a 'Certain amount of debt' is before they wind it up. Id say they would just run down the amount of staff needed as 75% approaced , then again at 85% to leave a few to wind the company up once it got to 90% claimed then sell the rest on .

You wont get out of paying it OP unless you die. Sorry but we all have to be responsible and pay our debts off.

antrobus

Flooz wrote: »

...How long will the Gov let nram run for before it winds them up?

On the basis that Northern Rock's business consisted of lending out money on 25 and 30 year mortgages, quite a long time, I'd imagine.

Flooz wrote: »

...
OH has a feeling that a maximum time was disclosed when they set it up, and we assume that eventually, once a certain amount of debt has been recovered, it will not be financially viable to continue paying salaries, etc, for a small recovery?

If that time ever comes, UKFI will simply close down the NRAM operation but hand over the NRAM loan book to somebody else to manage.

Flooz

Thank you for all the replies. Just to clarify, we're not looking for an easy 'escape', it was a genuine enquiry.

I'm aware that reduced payments are supposed to be a short term temporary solution, but sometimes in life, situations occur that aren't necessarily going to improve.