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Results: Have you enquired about your Northern Rock CCA loan

Yes, I have been awarded compensation

3.57% • 1 votes

Yes, I have been advised there is no valid complaint

3.57% • 1 votes

Yes, I am awaiting a response from Northern Rock/NRAM

57.14% • 16 votes

No

35.71% • 10 votes

You may not vote on this poll

28 votes in total.

Page 4
  • rmart
    My loan was originally 26,400 in 2004, however by 2008 the outstanding was around 23k... Does this matter or is it just dependant on the original sum borrowed?
    Originally posted by jimbo5661

    Original sum borrowed.
    • Fizzy Fish
    • By Fizzy Fish 14th Dec 12, 12:21 PM
    • 43 Posts
    • 12 Thanks
    Fizzy Fish
    BTW I just got a reply from NRAM to my email - it just seems to be a standard response, but hopefully with a few of us contacting them this has put the over 25K issue on their radar. Full text:

    Thank you for your email following the recent announcement regarding loans that are regulated by the Consumer Credit Act (CCA).

    At this time we are not able to give you any further information about the situation.
    We are currently undertaking a thorough review of all documentation sent to customers who hold loans that are regulated by the Consumer Credit Act (CCA).
    Once we fully understand the situation, in terms of who is affected and in what way, we will write to those customers with an update. We will do this in the next eight weeks.

    In the meantime, our websitewww.nram.co.uk will be updated regularly with all the latest information for our existing and redeemed customers.http://www.nram.co.uk_/

    Please note: if you hold an unsecured personal loan with a 16-digit account number, we can confirm you are NOT affected by this issue
  • rmart
    BTW I just got a reply from NRAM to my email - it just seems to be a standard response, but hopefully with a few of us contacting them this has put the over 25K issue on their radar. Full text:

    Thank you for your email following the recent announcement regarding loans that are regulated by the Consumer Credit Act (CCA).

    At this time we are not able to give you any further information about the situation.
    We are currently undertaking a thorough review of all documentation sent to customers who hold loans that are regulated by the Consumer Credit Act (CCA).
    Once we fully understand the situation, in terms of who is affected and in what way, we will write to those customers with an update. We will do this in the next eight weeks.

    Please note: if you hold an unsecured personal loan with a 16-digit account number, we can confirm you are NOT affected by this issue
    Originally posted by Fizzy Fish
    Excellent, so they dont know who is affected yet. I'll bet they are looking at the paperwork for those over 25k now and realising they made a huge !!!! up there.
    • rebeccatom
    • By rebeccatom 14th Dec 12, 1:23 PM
    • 158 Posts
    • 164 Thanks
    rebeccatom
    Thinking about it more, I want the loan written off !.

    In an age of mis selling scandals, surely if a bank incorrectly signs someone up for a loan on CCA protected terms they would have to stand by it or cancel it ?
    Surely they cannot decide later they are not giving that protection to an unaware customer?

    If they say this to me I will say they have breached the contract and demand back all payments made to them.
    Originally posted by rmart


    And there we have it. Greed!

    Happy to take the money, now want to wriggle out of paying it back
  • rmart
    Greed ? How does 13% interest sound ? Northern Rock are the ultimate greed machine.

    And why are you bothered ?
    Last edited by rmart; 14-12-2012 at 1:27 PM.
    • carlyberyl
    • By carlyberyl 14th Dec 12, 1:44 PM
    • 112 Posts
    • 56 Thanks
    carlyberyl
    Northern rock have been a law to themselves, never wanting to help a customer out!
    Like many we listened to financial advice given by an advisor, said the together mortgage was the best for us! We were young and thought we were being responsible by taking this advice.
    Fast forward a few years, were informed by NR that our mortgage payments were going up by 300 a month due to end of fixed rate. Tried to remortgage with them, wouldnt let us. Put house up for sale, had a mortgage in principal to move, then they turned round at the last minute and said they wouldn't lend to us.
    Had no choice but to go with another provider, bumped the unsecured payment up by 250 a month.
    Wound up paying the ERC at almost 4k as we had to change provider. Couple of weeks later they wrote to say there had been a mistake on their part, they hadn't charged us enough and there was a shortfall of 700. They became very rude when we rang up and said if we didnt pay the shortfall they would refuse to release the deeds to the property we had sold! Pickle or what! Ended up also paying that amount. Had to sell house, pay 4k then another 700
    Then recession hit literally weeks later and lo and behold our mortgage payments would have dropped by a huge amount, so we could have stayed in our lovely home after all.
    Northern rock never once tried to help us out, very unsympathetic, rude most times!
    I think for a lot of us its not about greed its about fairness, when we owe them money theyre quick to be on to claw it back but now theyre the ones thats in difficulty why shouldn't we get back what rightfully should never have been taken from us? Myself and my partner are both taxpayers too.
    • rebeccatom
    • By rebeccatom 14th Dec 12, 1:47 PM
    • 158 Posts
    • 164 Thanks
    rebeccatom
    As it has been said already, any compensation will come out of the tax payers pocket, of which i am one.

    No one was forced to sign up for these loans against their will. An interest rate is what someone is willing to lend you the money at, the choice is the borrower whether to take it or not.
  • joeb78
    Fizzy Fish, I've had exactly the same reply from NRAM.

    To the posters saying those seeking refunds are just being greedy or whatever:

    To a small extent you have a point. I think it's fair to say that that the majority of us hate the whole 'no win no fee' type culture. However, If people with loans under 25,000 are getting refunds because of the technicality of the original loan amount not being printed on their statements (and despite in no way being out of pocket), it is only natural for those of us with loans over 25000 to look into the matter. Surely anyone would do the same, wouldn't they?
    • carlyberyl
    • By carlyberyl 14th Dec 12, 2:01 PM
    • 112 Posts
    • 56 Thanks
    carlyberyl
    Well were tax payers so were possibly giving ourselves a refund then!
    • jimbo5661
    • By jimbo5661 14th Dec 12, 3:26 PM
    • 67 Posts
    • 10 Thanks
    jimbo5661
    Original sum borrowed.
    Originally posted by rmart
    That's a shame!

    Since 2004 I took out another 17k in two further advances, one in 2005, the other in 2006. Will these have been secured? Will these have been affected?
  • shellyk6666
    We took out a 25K unsecured loan as part of our together mortgage in June 2007 but then increased it 3 months later to 30K. Do you think this will mean it is protected by the CCA because the original loan amount was not over the limit? I'm not holding my breath but I can't help but hope! What do you think??
    Originally posted by shellyk6666
    I spoke to NR's dedicated telephone line for the CCA loan issue. They couldn't confirm anything about my specific circumstances and said I'd just have to wait and see if I receive a letter, however, I asked a couple of general questions.

    I asked about what happens where the original loan was 25K and then later upped to 30K and he thought that they may have been treated like 2 separate loans and therefore both be regulated.

    Then I asked about the situation for loans over 30K that were signed up as regulated under the CCA and he thought that they would have to be treated the same as the others.

    To be honest the bloke was probably just giving my his personal point of view but it gives me a little bit of hope!
  • Wutang
    Greed ? How does 13% interest sound ? Northern Rock are the ultimate greed machine.

    And why are you bothered ?
    Originally posted by rmart
    : mad:
    Hi, weve had to remove your signature. If youre not sure why please read the forum rules or email the forum team if youre still unsure - MSE ForumTeam
  • claret_mike
    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 Acts 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?
    • bigbadwolf500
    • By bigbadwolf500 14th Dec 12, 7:46 PM
    • 70 Posts
    • 17 Thanks
    bigbadwolf500
    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.
  • shellyk6666
    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.
    Originally posted by bigbadwolf500
    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!
  • Heathyboy
    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 confused
    Last edited by Heathyboy; 14-12-2012 at 11:40 PM.
  • rmart
    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...
    • carlyberyl
    • By carlyberyl 15th Dec 12, 12:58 PM
    • 112 Posts
    • 56 Thanks
    carlyberyl
    So strangely enough today weve received our statement, and guess what? Still no original balance included!!
    • jimbo5661
    • By jimbo5661 15th Dec 12, 3:13 PM
    • 67 Posts
    • 10 Thanks
    jimbo5661
    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...
  • Okay
    Frustrated
    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???
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