Northern Rock to repay £270m to loan customers

[42man]

http://www.bbc.co.uk/news/business-20679511

[Wintry]

Hi

 

Interesting in a number of ways, formal insolvency solutions included perhaps

[42man]

It is pretty disgusting especially so as we have seen repossessions on here from this company, how do you compensate for a reposession and the dreadful after effects ?!

[Wintry]

Hi

 

One or two CCJs & Charging Orders have resulted from these together mortgages

[bedlington83]

Does this relate to the unsecured element of Together mortgages or is it all unsecured lending?

[spamheed]

According to the news this morning, this relates to unsecured loans taken out prior to 2008 and includes a large number of Together mortgages, they are reckoning on an average amount of £1770+ being paid out to individuals, basically any interest or charges applied to the loan since 2008

 

I have a live Together morgage with an £18k unsecured element, would be interested if this is to be offset against the loan amount, effectively reducing the amount owed.

 

It would be interesting to hear the legal implications of such an error from an enforceability angle - like a lot of Together Mortgage holders, I am unable to move as the loan element would attract an interest rate in excess of 11%

[42man]

Are you thinking unenforceability Spam ? It would be good to know where the wording was wrong......

[spamheed]

Are you thinking unenforceability Spam ? It would be good to know where the wording was wrong......

 

apparently the issue lies with the statements issued by NRAM after NR was taken over, which under the CCA were required to contain the full amount owed and the breakdown of same. the statements which were issued did not contain this info, so interest could not be charged. How this could be construed as making the CCA unenforceable, I don't know (yet)

 

Up to now the only realistic argument that I have heard against the unsecured element of a Together Mortgage would be under CPUTR, basically making it impossible to move from NR without incurring a punitive interest rate on the unsecured lending. But on it's own I cannot see this being a winner.

[Peterbard]

Am I right in thinking that this was due to failure to comply with the new copy regulations in CCA 2006 section 77a ?

[Peterbard]

Sorry crossed post.

The requirements of section 77a say that if no yearly statement is sent then no interest is chargeable for that period.

[spamheed]

Am I right in thinking that this was due to failure to comply with the new copy regulations in CCA 2006 section 77a ?

 

I believe that this is the case, at least to some extent as it is to do with the mandatory information not being included in the statement.

[spamheed]

I have been advised that breaching the CCA by failing to include mandatory information on the statements can be rectified by removing any charges and/or interest applied to the loan during the period of the breach and sending amended/correct statements.

 

This I believe, is what NRAM are doing

[bizzisguy]

I wonder how long they will drag their feet on getting these sent out, also, what about the ones over £20k, do we really believe that their statements were correct?, surely the system would have been the same for all non secured loans.

Edited December 12, 2012 by bizzisguy
need to learn to read....

[Peterbard]

Yes i think it may be this bit from section 77A

 

(6)

Where this subsection applies in relation to a failure to give a statement under this section to the debtor—

(a)

the creditor shall not be entitled to enforce the agreement during the period of non-compliance;

(b)

the debtor shall have no liability to pay any sum of interest to the culated by reference to the period of non-compliance or to any partof it; and

©

the debtor shall have no liability to pay any default sum which (apartfrom this paragraph)—

(i)

would have become payable during the period of non-compliance; or

(ii)

would have become payable after the end of that period inconnection with a breach of the agreement which occurs duringthat period (whether or not the breach continues after the endof that period).

[spamheed]

I wonder how long they will drag their feet on getting these sent out, also, what about the ones over £20k, do we really believe that their statements were correct?, surely the system would have been the same for all non secured loans.

 

Loans over £25k aren't covered by CCA, so there would be no requirement for any such statements to be issued, let alone be accurate, I believe that all of the loans involved in this situation have to be covered by the CCA for any compensation payment to be made, ergo, the loans would be under £25k. The media is reporting that NRAM will be sending out letters immediately and that it was only the new oversight processes that found such a basic error

[Peterbard]

Loans over £25k aren't covered by CCA, so there would be no requirement for any such statements to be issued, let alone be accurate, I believe that all of the loans involved in this situation have to be covered by the CCA for any compensation payment to be made, ergo, the loans would be under £25k. The media is reporting that NRAM will be sending out letters immediately and that it was only the new oversight processes that found such a basic error

 

The ceiling of £25k was removed of course in may 2008 for none business loans, so after this date the regulations will apply to larger loans

[spamheed]

The ceiling of £25k was removed of course in may 2008 for none business loans, so after this date the regulations will apply to larger loans

 

Yes this is true, excuse my use of the word "aren't" instead of "weren't"

 

Since the NRAM issue only involves loans taken out before 2008, the CCA restriction still applies and there are no loans over £25k included in their compensation plan, this has also been reported in the media

[Peterbard]

I wonder if it worth examining other loans, perhaps similar errors have been made elsewhere.

[Peterbard]

Here are the SI that govern form and content of statements

 

http://www.legislation.gov.uk/uksi/2007/1167/schedule/1/made

[daz182]

Just to clarify, for people that have loans effected by this that are still live, they will NOT recieve a CASH refund, the balance of the account will be redressed to take into account the refund, accounts that are now closed will receive a cash refund.

 

Or at least that what I can make out from the reports I read on BBC news website.

 

Cheers,

Darren.

[Peg1]

Have letters been sent to NRAM customers I have a together mortgage and a loan all taken out before 2008 I haven't received anything just wondered if anyone has

[spamheed]

Have letters been sent to NRAM customers I have a together mortgage and a loan all taken out before 2008 I haven't received anything just wondered if anyone has

 

Yes I received a letter before christmas telling me they would let me have a difinitive outcome within eight week, if you haven't yet heard, it may be worth giving them a call, just to see if your loan was included in this issue

[ceiralennon]

Hi there,

 

I have started an action group called nram action group org uk for all disgruntled customers.

 

Have a look at the website and sign up as we need as many people as possible in order to take it further.

 

We are working on a lot of content to add as there seems to be so many issues with nram. We are also talking to Which, who might be able to back a super complaint to the FSA.

 

All our complaints are with the FOS and with a specialist team which seems positive. So fingers crossed we can get some sort of action from them.

[Carlybird]

Hi Ceira

Been following your work on MSE so I'm a member here and glad to see you here!!

Iv had my redress applied but like you I'm disgruntled- just who do they think they are- No consultation no choices etc etc etc.

Would my next stage be a complaint? Are you trying to get the money back rather than a re/structure of your mortgage?

 

Cheers

 

C

 

 

Hi there,

 

 

I have started an action group called nram action group org uk for all

disgruntled customers.

 

Have a look at the website and sign up as we need as many people as possible

in order to take it further.

 

We are working on a lot of content to add as there seems to be so many issues

with nram. We are also talking to Which, who might be able to back a super

complaint to the FSA.

 

 

All our complaints are with the FOS and with a specialist team which seems

positive. So fingers crossed we can get some sort of action from

them.

Edited April 23, 2013 by citizenB
tidied quote links

[ceiralennon]

Hi Ceira

Been following your work on MSE so I'm a member here and glad to see you here!!

Iv had my redress applied but like you I'm disgruntled- just who do they think they are- No consultation no choices etc etc etc.

Would my next stage be a complaint? Are you trying to get the money back rather than a re/structure of your mortgage?

 

Cheers

 

C

 

 

UOTE=ceiralennon;4201872]Hi there,

 

I have started an action group called nram action group org uk for all disgruntled customers.

 

Have a look at the website and sign up as we need as many people as possible in order to take it further.

 

We are working on a lot of content to add as there seems to be so many issues with nram. We are also talking to Which, who might be able to back a super complaint to the FSA.

 

All our complaints are with the FOS and with a specialist team which seems positive. So fingers crossed we can get some sort of action from them.

 

Hiya, I would definitely complain officially to nram, they will not uphold it, then you send it to fos. There is so many complaints about nram with them they are looking at a mass complaint so the quicker the better.

 

Keeps us updated.

 

Thanks

Ceira