Northern rock loan over £25,000
Options
Comments
-
Greed ? How does 13% interest sound ? Northern Rock are the ultimate greed machine.
And why are you bothered ?
:money::money::money::money::money::money::money::mad::mad::mad:Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
I have had the same response too...
Reflecting on everything and trying to understand the possible outcomes on this, I keep coming to the same conclusions of that we have 2 responses that can be given..
1 - Your loan does not form part of the CCA 1974 regulated loan rules and is in fact an unregulated loan.
2 - Your loan should be unregulated but due to error, we will afford you the protection of the CCA 1974 rules.
If they conclude option 2 then we should be afforded the same protection as those with balances under 25k so if our paperwork has been improperly executed then we should be in line to have the error corrected as everyone else has.
If they conclude option 1 then my guess is that we will need to challenge the whole situation.
This is something I have taken off CAG so possibly may indicate what the possible options may be to us.
1) Loan Agreements in excess of £25,000 that were entered into between the 1st of May 1998 and 5th of April. 2008.
There are varying interpretations for the consequences of this scenario, here is one;
Opinion "(i)"
Originally Posted by Josie8
It is a regulated agreement becuase that is what they have entered into with you. The fact that it exceeds the £25,000 limit makes it unenforceable. It does not change to an unregulated agreement. They are stuck with having issued you with a Consumer regulated loan that doesn't comply. ...
Personally, I like this interpretation, The consumer has signed an agreement that claims to be regulated, but by stating a prescribed term (in this case the amount of credit) that falls outside of the limits specified by the act. ipso facto an unenforceable agreement.
Should the issue get to court, you would of course require a Judge to agree with that contention.
Opinion "(ii)"
Trading Standards Surrey;
"... as the agreement was signed in November 2004 with a credit limit in excess of £30,000.
When the agreement was executed, the 1974 Act provided that only agreements for a maximum of £25,000 were regulated.
I have formed the opinion that the agreement is probably not regulated. However, in my view, if the agreement was erroneously executed using regulated paperwork then all the protection offered by the Consumer Credit Act would be imported into the agreement as part of the contract. This is
because you entered the agreement based on the contract, which stated that the agreement was regulated and that you would benefit from the Act’s protection. Therefore, failure to allow you to exercise rights afforded to you by the Act may well mean that your credit provider is in breach
of contract and so liable for damages.
I think I will just be patient for the time being and enjoy the festive period and see whether I get a letter or not. If I have not received anything then I think I will put a formal complaint in and see where that takes me. I am overpaying at the moment and ultimately I will keep my repayments going so it will just be a case of seeing where it goes. Does anyone know if the Financial Ombudsman would be a possible route here?0 -
First step would be to write to NRAM. They then have 8 weeks to respond. If you are not satisfied with the response from NRAM, you can then take your case to the Financial Ombudsman.0
-
bigbadwolf500 wrote: »First step would be to write to NRAM. They then have 8 weeks to respond. If you are not satisfied with the response from NRAM, you can then take your case to the Financial Ombudsman.
Think I'll do this. Wait to see if I get a letter, then if not write to NR. If no luck then go to Financial Ombudsman. If still nothing then so be it!0 -
Can someone tell me why on my Statements the original amount is not stated? Is this Law? Also it states my mortage and secured loan of 25k are covered by the FSA. Does this mean it is not covered by the CCA? Some what confused0
-
I have just sent this to the bbc at the end of their report here :
http://www.bbc.co.uk/news/business-20679511
My daughters took out a together mortgage with Northern Rock in Nov 2006. They were issued with a loan of £28,000 which is above the £25,000 threshold covered by the CCA.
However they were given the loan on CCA covered paperwork.i.e the loan agreement states at the very top.
"Fixed-sum loan agreement regulated by the Consumer Credit Act 1974"
The signature box where they were told to sign states
"This is a credit agreement regulated by the CCA 1974. Sign it only if you want to be bound by its terms'
We have asked for clarification from Northern Rock on whether they are covered and they say they are looking into it.
I think this is an even bigger problem for NR as they either give the protection or the loans were mis sold making a much bigger claim from customers.
I think you should report on this. There are many of us on moneysavingexpert.com in the same position.
We should all contact them so they can investigate...0 -
So strangely enough today weve received our statement, and guess what? Still no original balance included!!0
-
I got a letter today from a NE postcode. I thought great - I maybe in luck. Opened it and it was an extended warranty letter for a laptop I got last year! Gutted...0
-
Took out one of the Together Mortgages in 2004 with the unsecured element equalling 26400 - so a bit disheartened when heard that only loans under 25k CCA regulated. Then checked paperwork which states CCA regulated. No surprise that havent received a letter but determined to pursue all the way, especially because NRAM were unhelpful when I was going through temporary payment difficulties. Also has anyone ever tried complaining to NRAM via email - they state a warning about Internet security so ask you don't give personal details or else will not respond and instead give a number to be contacted on - which I did but then received an email response stating cannot respond without details (dob, address and account no.) with same warning about not sending personal details by email???0
-
Following the lead of claret_mike and rmart I have written to Mr Javid at the Treasury (ministers@hmtreasury.gsi.gov.uk) and the BBC (using the form following the news item - link in the post by rmart). I have also written to NRAM explaining my concerns, but just received the standard reply like others. Can I encourage everyone to do the same ie write to Mr Javid at Treasury, the BBC, NRAM and your MP outlining your concerns, which are well articulated in this thread. It really can make a difference.0
This discussion has been closed.
Categories
- All Categories
- 343.3K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 248K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards