Northern Rock PPI Claim

[hellsbells1805]

Good luck with the PPI claim and if you do go down the unenforceable agreements route will be more than happy to help as that's what pays my mortgage!

[Jan4a]

Northern Rock gone quiet - I sent them a letter telling them that I would report to FSA if they continued to chase me for a disputed payment and if they threatened my credit rating again. They chased me for a few more days after that but haven't heard from them for a week now.

 

Sent PPI reclaim letter on 2 August so they have to come back to me this week with an answer - it is 60 days isn't it? oh, but you add on a few for postage time as well I believe.

[workingmumof3]

Sent PPI reclaim letter on 2 August so they have to come back to me this week with an answer - it is 60 days isn't it? oh, but you add on a few for postage time as well I believe.

 

When you submit a complaint to an firm regulated by the FSA the firm has up to 8 weeks (40 workign days) to issue a final response to you. However, if the firm has been unable to resolve your complaint after 4 weeks, they must write to you to explain why it has not yet been resolved and when you could reasonably expect it to be finalised. If after the full 8 weeks the firm has not issued you with a final (resolution) letter they have to advise you that you can now refer the complaint to the financial ombudsman service FOS and they must provide you with the address of the FOS.

 

It is worth knowing that after the 3rd case submitted against a firm each case that a complainant refers to the FOS costs the firm £500 so the firms are usually keen to respond within the required 8 weeks.

 

Depending on when you sent your original letter, you may have to wait a little longer.

 

WMO3

[Jan4a]

Thank you - think they did write and say 6/8 weeks but didn't give a reason as to why. That could explain why their debt collection people have gone quiet though.... as well as me threatening them with FSA.

 

Will think about giving them a ring on Friday - unsure as prefer it all in writing.

[Bosund]

Subbing

[Jan4a]

I've received a letter from Northern Rock this morning apologising for the delay which is due to high workload and saying they aim to give me a final response within the next 4 weeks, which will take it to 3 months (from 2 August). They do give Financial Ombudsman's details, as Workingmum said should happen.

 

From what I understand there isn't much point writing to FO as they have a huge backlog so I don't really have much choice but wait. As I'm not paying my £200 pcm whilst they're sorting this out, I'm not too bothered.

 

As my PPI was front loaded and on an unsecured loan, I'm also wondering whether the FSA announcement last week has anything to do with the delay. Maybe they're having to look at everything again to comply with that.

 

Might send a letter back saying I'll allow them the 4 weeks but after that will complain to FO about their delaying tactics. And get them to send another screenshot of my account since 2 August so I can see whether they've got me down as "disputed account" or "late payments".

 

Any thoughts?

 

Jan

[Jan4a]

bump please.

[Jan4a]

Just read a post by AA on another thread. Decided I'm being naive above and am going to report to Ombudsman tomorrow!

[alanalana]

I've received a letter from Northern Rock this morning apologising for the delay which is due to high workload and saying they aim to give me a final response within the next 4 weeks, which will take it to 3 months (from 2 August). (Yes yet another delaying tactic)

They do give Financial Ombudsman's details, as Workingmum said should happen. (They will all give the details for complaints to the FOS in a nice shiny leaflet)

 

From what I understand there isn't much point writing to FO as they have a huge backlog so I don't really have much choice but wait. (Do not wait start a complaint as the 8 week deadline has been exceeded) As I'm not paying my £200 pcm whilst they're sorting this out, I'm not too bothered.

 

As my PPI was front loaded and on an unsecured loan, (One of the reasons for mis-selling) I'm also wondering whether the FSA announcement last week has anything to do with the delay. Maybe they're having to look at everything again to comply with that. (without a doubt they will be looking at all the claims they have rejected with proper redressal of the complaint submitted)

Might send a letter back saying I'll allow them the 4 weeks but after that will complain to FO about their delaying tactics. ( I would allow them no more time they have 8 weeks but the game at the moment is to say we need more time, another 4 weeks etc etc, IMO it is very important to stick to the timescales if they do not respond within 8 weeks or give you a final decision not in your favour within the 8 weeks you should start immediate action through the FOS or Court - this is your choice) And get them to send another screenshot of my account since 2 August so I can see whether they've got me down as "disputed account" or "late payments".

 

Any thoughts?

 

Jan

 

Hello Jan all of my thoughts are in blue above it is time to stop playing to the tune of the banks allowing them extra time I did that and ended up with a fight 12 months long. The situation has not improved as the banks are now using other delaying tactics. Make them stick to the guidelines if the do not complain to the FSA if the timescales are breached and the ICO if they do not produce all the data you asked for.

 

aa

[Jan4a]

an update.

 

Have my first day off work for a while so settled down to fill in Ombudsman form, having already done my photocopying, and thought I'd just ring NR for an update.

 

Well, they say a letter is in the post and they told me how much I'm actually getting from them they said it included interest and 8% but it didnt' sound as much as I was claiming. They didn't say how much they were taking off loan which should be a lot, they evaded that question. I'll have to wait for the letter tomorrow to see details.

 

I might still be going to Ombudsman though by the sounds of it. Would rather trust PF's figures than NR's!

 

Might be screaming for help tomorrow if I don't understand what they are saying!

 

Jan

[alanalana]

You will probably not get your mail due to the postal strike.

 

However when it arrives if you are not happy tell them.

[Jan4a]

Much to my surprise I not only got my post but it was 4 hours earlier than usual!

 

NR are offering about a third of what I am claiming. They say they are paying me interest and 8% as well, but the figures just don't add up. The interest is about £7k less than on the spreadsheet I sent them (Bogs), and as I had loads of help from PF on that I know it is right. NR just refer to "interest" and do not explain how it is calculated or what type of interest it is in their offer.

 

I'm not that clued up on the different types of interest but from what PF has said, I think it is the difference in compound and simple.

 

What a load of baskets though, if I hadn't been on this site I wouldn't have known any better and would have accepted it.

 

Right, as their letter says "final offer" I think my next step is Ombudsman, explaing that NR aren't offering correct interest payments.

[landy_alert]

Hi Jan:)

 

Have just been having a read of your thread - have NR said if what they are offering is the premiums you have paid plus 8%?

 

I ask this because it seems that in the case of a loan where the PPI has been applied as a single premium, the monthly element of PPI being charged already includes interest at the contractual rate.

 

Where a lot of us have been going wrong I believe (and aa is in agreement with the principle of this), is in asking for the refund of PPI premiums plus contractual interest plus 8% simple interest, when the refund of a monthly PPI premium will already include the contractual interest charged. Therefore we are asking for contractual interest that has already been accounted for in the refund of the monthly premiums.

 

Apologies if I'm not explaining this very clearly:confused:

 

For example - if on your loan agreement it states that the monthly PPI element of your repayment is say £35, we should only be asking for £35 plus 8%, not £35 plus contractual plus 8% as the £35 includes the contractual interest we were charged.

 

I have had to go back through all my claims and readjust my calculations (and my expectations) accordingly:(

 

I could be wrong, but I believe this is why a lot of us are disappointed when we get made a refund offer lower than we had hoped.

 

This is just my opinion and only applies to loans with single premium PPIs, not credit cards, btw.

 

Regards,

 

Landy x

[Jan4a]

Jan

Edited October 29, 2009 by Jan4a
Deleted as pc crashed and it was duplicated

[Jan4a]

have NR said if what they are offering is the premiums you have paid plus 8%?

 

Hi Landy

 

Yes they have! And your post is very clear. I have been trying to claim contractual interest twice. Have had another look at their figures and they make sense now and I think they are right. (should apologise for calling them baskets!)

 

So does this mean the spreadsheet on stickies (Bog's) is wrong? or that we are putting wrong figures into it?

 

Now it is less I could think about unenforceable CCA - that all sounds a bit scarey though and I don't think you can do it without getting a bad credit record. I need to research it properly.

 

I'll have a think about it until Monday but at the moment I'm veering towards accepting it and continuing to pay off loan.

 

They're offering to pay it into my bank account btw, they're not trying to take it off loan amount like some seem to do. If I told them to do that though would I save loads of interest? But then the loan interest is 6.2% and my credit card interest is higher so I should pay that off. And I promised CAG 5% of what I got. Sorry, waffling!

 

 

Thanks for reading thread and your help.

 

Jan

 

tried to click your scales but it didn't work as it wouldn't let me type in the reason box.

Edited October 29, 2009 by Jan4a
scales

[landy_alert]

Hi Jan:)

 

I'm sorry I was the bearer of bad news, but it does seem as if a lot of us have made this mistake:confused:

 

As for whether it's the spreadsheet or us that's wrong - although I can't be sure, I would guess it's probably us entering the wrong figs. I have used them too for several PPI refund claims and as I said, I'm now going back over my figures and attempting to recalculate.

 

It was something said by RedVixen on one of my Lloyds TSB threads last week that made me realise there was something wrong with the way I (and probably several others) had been doing it. Alanalana came along and said he believed that this was why there had been so much confusion over the contractual interest issue.

 

I only wish I could be proved wrong after all.

 

I must admit I feel a bit of a fool as I put in one claim to Direct Line for about £8000, when it should probably have been about £800!

 

Once again sorry for the disappointment I have caused.

 

Regards,

 

Landy x

[Jan4a]

No problem, the important thing is that we get what we are owed and they don't get away with it. And I'm quite pleased its over, I thought it would have to go to Ombudsman and would take another 6 months to sort.

 

Not your fault anyway!

[alanalana]

No problem, the important thing is that we get what we are owed and they don't get away with it. And I'm quite pleased its over, I thought it would have to go to Ombudsman and would take another 6 months to sort.

 

Not your fault anyway!

 

 

My claim was actually more comprehensive I was asking for all of the premiums (that already had contractual interest included) and then I asked for more contractual interest and then I asked for 8% simple interest and then I asked for repayment of the single upfront premium. (this is why it probably took 12 months to resolve via the FOS) The only thing I didn't ask for was a few shares in the bank and a directorship on the board.

[Jan4a]

well, always worth a try - if you don't ask you definately don't get!

 

Shall I ask someone to put won on or wait for the money?

 

Jan

[alanalana]

I can put on a ***WON*** just shout when the cheque has cleared and yout have a on your face

 

aa

[Jan4a]

edit

Edited October 29, 2009 by Jan4a
laptop keeps crashing today so I duplicated again!!

[Jan4a]

Thanks. They've asked for bank details so they can pay it straight into my account once they have the signed form back.

[alanalana]

Keep us posted

[Jan4a]

Right. Have read the letter again and they do want me to sign a new agreement before I get money, although it does say its the same interest rate and same length. Here is exact wording from relevant paragraphs:

 

"Your total loan payment was £200.11., this included a cash loan payment of £134.75 and PPI premium £65.36. The APR is 6.4% and will remain at this rate.

 

If we had set up the loan without PPI you should have paid 62 payments of £134.75 totalling £8,354.50 for the cash loan. You have paid £8,085 for the cash loan representing 60 monthly payments. (that discrepency is because I haven't paid 2 months whilst waiting for them to sort it)

 

Please sign and return the Acceptance Declaration and I will make arrangements to set up a new loan without insurance. The outstanding loan balance including interest will be £7,815.50. To pay the loan over the original remaining term of 58 months you will need to pay £134.75 per month. It would be helpful if you could return the acceptance declaration within the next 10 days.

 

Once I receive the signed Acceptance Declaration I will arrange for a new Credit Agreement to be sent to you, which you will need to sign and return within 14 days. When we receive this we will transfer £4etc to your nominated bank account within 10 working days."

 

It sounds like I'll be getting same interest rate etc. but I quite like the credit agreement I've currently got because its probably unenforceable if ever I decide to go down that route.

 

But I can't see a way round signing a new one. Even if I told them to take the refund of my balance they probably still make me sign a new agreement.

[pompeyfaith]

you should also check the T&C are also the same as and if they are differant which i suspect that they do not unfairly penalise u and that u are happy with any changes to the T&C's PF