Northern Rock to pay out compensation for the Together Mortgage

Graham_Devon

Even better - the defendant for NRAM, head of unsecured debt recovery for UKAR (which now manages Northern Rock)... had one of these very loans!!

antrobus

Graham_Devon wrote: »

.....It's often been muted on here before now that these types of loans could well be the next PPI. Could this be the start of it? ...

No.

As would be perfectly clear had you actually read the article you linked to.

Graham_Devon

antrobus wrote: »

Nothing in substance. I believe that it is one of these technical breaches of the CCA - the rules changed so that lenders had to send out an annual statement within a specific time limit, and failure to do so meant that they couldn't charge interest. A number of lenders were caught out by this, and were obliged to make refunds of the interest.

The situation with NR was more complicated in that it had advanced a number of unsecured loans under the Together brand which were over the £25k limit that applied and therefore were not subject to the CCA. However NR had mistakenly told people that the loans were covered by the CCA. Ergo there was some doubt as to whether or not these people were eligible. Hence NR arranged for a test case that has now been decided.

There is a long running thread about the issue.
https://forums.moneysavingexpert.com/discussion/4342285

Thanks - interesting thread.

Notice they have gone down the "It's a miss-sale" route.

Like anyone even read it when they took the mortgage out....

Apparently some wouldn't have taken the loan if it were not protected by the CCA.... "Yeh right" is all I have to say!

Thrugelmir

Linton wrote: »

the government took it over cheaply and steadily wound it down.

You obviously never read the Treasury report into Northern Rock. Northern Rock ran into trouble in August 2007, yet under Treasury supervision continued to conduct new business until March 2008. The intervening period was the time it took to ascertain the true state of NR's finances. In the end there was no alternative but to nationalise the operation.

Also the fact that former Directors of Northern Rock were banned for life from working in the industry. Due to reporting misleading financial information together with hiding the true state of mortgage arrears.

The UK taxpayer is still owed around £45 billion from loans pumped in to keep the operation afloat.

Don't forget either that NRAM also holds the old mortgage books of the Bradford & Bingley as well. In particular thousands of BTL mortgages that are on very low tracker rates. All of which will require refinancing in the years to come.

Col_E

I had one of these mortgages between 2001 and 2004. I have since ended the mortgage, moving from the house, my ex partner (joint mortgagee) has also since moved etc and I have had a few address changes since then.

How does someone make the claim for these does anyone know. I doubt NR have my up to date details these days?

Edit I have since found out how to contact and advise of changes in address so if anyone else is in the same situation then please read this below from NRAMs own website

We wrote to affected NRAM customers following the 2012 review, providing specific details about the impact on their loan account which may have included the amount of redress, revised monthly payments and revised term end date if applicable. Customers affected by the 2014 review will receive further information from us in the next few months.
However, if your address has changed since your account with NRAM redeemed, please call us and we will update our records. Contact us on 0845 609 9626* Monday to Friday from 8:30am to 6pm.

antrobus

Thrugelmir wrote: »

.....The UK taxpayer is still owed around £45 billion from loans pumped in to keep the operation afloat. ...

Only £15 billion left outstanding as at 31 March 2014. Even less now.

Thrugelmir wrote: »

....Don't forget either that NRAM also holds the old mortgage books of the Bradford & Bingley as well. ....

No it doesn't. UKAR owns both NRAM plc and Bradford & Bingley plc, but both NRAM and B&B continue as sepearate reporting entities.

Thrugelmir wrote: »

...In particular thousands of BTL mortgages that are on very low tracker rates. All of which will require refinancing in the years to come.

Not so much as far as NRAM is concerned.Something like 2/3rds of the remaining B&B book is BTL, however.

dc1777

I love the way there are so many experts on other peoples affairs. For those who quote the "small print" argument. To clarify, I sat with one or the largest lenders who clearly stated verbally and on all paperwork that I as a consumer was protected buy a statute piece of legislation in the consumer credit act. When they are then found to be contravening the act they look for a "loophole" and tell me, "you should have read the small print" Now the boot is on the other foot. This is not a bandwagon but just reward for having the misfortune of having to deal with an irrational nationalised organisation.

antrobus

Col_E wrote: »

I had one of these mortgages between 2001 and 2004. I have since ended the mortgage, moving from the house, my ex partner (joint mortgagee) has also since moved etc and I have had a few address changes since then......

You might be out of luck.:)

Now you should check up on this, but I think the whole issue sterms from the Consumer Credit Act 2006 and The Consumer Credit (Information Requirements and Duration of Licences and Charges) Regulations 2007 which basically introduced this requirement to produce annual statements.

So obviously, if you had a Together mortgage that was repaid in 2004, this requirement would not apply.

antrobus

dc1777 wrote: »

.... This is not a bandwagon but just reward for having the misfortune of having to deal with an irrational nationalised organisation.

Actually the reward has been earned by many for having to deal with perfectly rational private sector organisations, including ones that were mutually owned. There is a long list of banks that have f****d this one up, Barclays, Co-Op ............