How Does Northern Rock's situation effect my debt?

ferret88

Hi all

My biggest debtor is Northern Rock with whom I took out a 18k loan (but they are insisting the debt is 23k with all the interest up front).

Because of their reluctance toward IVAs I was forced to go into a DMP and even then they were one of the creditors who gave me the most grief.

How does their current shaky situation effect that debt to them? I doubt they would be in any position now to write it off (or are they?) but what would happen if the company goes under - will the debt be passed onto someone else and does this mean they might be up for an IVA?

If anyone has any ideas or theories or experience of anything similar I'd love to hear them.

Many thanks,

Your friendly neighbourhood

Ferret

marksta

this might not be any help but this is my understanding of the situations. I am interested in the story as I have a NR mortgage and secured loan.

The only people potentially affected by NR problems are savers. To be honest there wasn't anything to worry about, but because of the, in my opinion, sensationalist reporting by Sky and the BBC it whipped everyone up into an unnecessary panic, causing the queues.

If NR goes under due to the panic withdrawal of savings then there will be a lot of interest in a takeover as the debtors (mortgage and loan customers such as you and I) we'll simply get passed onto whoever takes over. I should imagine if a bigger bank with more assets takes over then they might be able to give you the option of an IVA. NR don't have a large amount of current account customers to get the money from, hence the BoE loan.

So personally I doubt they'll write off any debt it'll be transferred to a new lender who may be able to offer you other options. IF they go under, that is!

hope that helps

IN_LIKE_EVERYONE_ELSE!

I have a Northern Rock loan, I am stopping my direct debit untill the fog clears.

liz105

IN_LIKE_EVERYONE_ELSE! wrote: »

I have a Northern Rock loan, I am stopping my direct debit untill the fog clears.

this will seriously affect your credit rating. NR simply didnt make AS MUCH profit as they were hoping. They still made hundreds of millions!!!!

They would never 'go under', they'd be bought out waaayyyyyy before that happened.

newmum1

IN_LIKE_EVERYONE_ELSE! wrote: »

I have a Northern Rock loan, I am stopping my direct debit untill the fog clears.

If I were you I would continue paying regardless of Nr situation, you may well end up further in debt.

LittleVoice

IN_LIKE_EVERYONE_ELSE! wrote: »

I have a Northern Rock loan, I am stopping my direct debit untill the fog clears.

If you stop paying, you will owe more - and someone truly wanting to be Debt-Free would not want that.

mrdhelpston

Just 2 points:

1) It is wrong to say that the only ones who will suffer are
Savers. Savers will NOT suffer: the ones who will (or
already have) are the Shareholders, who have seen
their investments decimated over the past year.

2) Why cancel a mortgage Direct Debit "until the fog
clears"? What fog? If you borrowed money from a
friend, and that friend had temporary money
worries, would you refuse to repay the debt? I hope
not!

southernscouser

IN_LIKE_EVERYONE_ELSE! wrote: »

I have a Northern Rock loan, I am stopping my direct debit untill the fog clears.

Woah this is dangerous!

Do not stop paying your debt! You aren't going to lose out here. They won't do a runner with your payment! You are only going to cause yourself harm! :eek:

notanothergreyhair

liz105 wrote: »

They would never 'go under', they'd be bought out waaayyyyyy before that happened.

Interesting article here about NR and takeover intricacies.

http://www.bbc.co.uk/blogs/thereporters/robertpeston/2007/09/rock_cant_be_sold.html