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NRAM - unsecured Together loan. Capitalise arrears?


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Hi everyone, not been on the forum for a long time, mainly due to the help and advice I received at the time!

 

I have a quick question, but first a bit of history.

 

6 years ago my wife was made redundant. She was earning a great salary at the time, so we were hit quite hard. Had to make arrangements with all creditors, most of whom hit us with defaults from every angle!!

 

We have a Together mortgage with NRAM. The secured element has always been kept up to date, but 3 years ago we made an arrangement to make reduced payments. Should have been paying £140, but been paying £40. They agreed 0% interest too.

 

Well, life has moved on and thankfully now the defaults have started to disappear from the CRA files, and by this time next year they will all have gone. Hallelujah!! Unfortunately (if thats the right word?), NRAM didn't default us on the unsecured loan, so it shows as LATE PAYMENT on the CRA file, with arrears of £4000.

 

I want to pay them more now, but I'm not sure of how to do it in the most cost effective way, but as importantly, I want to get the CRA file cleared up.

 

We're currently paying £40. We should have been paying £140. I can only afford to pay £140 now, so not in a position to clear the arrears & can't imagine we will ever be. My ideas were:-

 

Divide the total outstanding balance by the remaining term of the mortgage = £80 a month. I pay this every month, they amend the CRA file to show no arrears. Obviously they'd have to keep the interest rate at 0% for this to work.

 

I know thats a big ask, but they'd be getting double what they are now. The alternative is I stop paying, they default me, I provide a budget planner to show I can only pay £85 a month, interest is frozen and the default disappears in 6 years. If they won't agree to my idea above, this is probably preferrable for me...

 

Alternatively (and probably more realistically), they agree to capitalise the arrears and I repay the new balance at the original interest rate over the remaining term of the mortgage. This would be about £125 a month. I'd be happy with that too.

 

One thing that's strange is that I'm CERTAIN we took the unsecured loan out over the same period as the mortgage, but it seems to have 10 years less to run now??!! Maybe the old grey matter isn't what it once was!

 

Anyone any thoughts on this situation? Are they likely to agree to my 0% suggestion? Might they go for the capitalisation of arrears idea?

 

One final word for anyone going through what we've experienced over the last few years.

Don't Worry!

 

 

A few years ago we thought our world was ending, sleepless nights, arguments, and lots of letters to various DCA's, solicitors etc.

 

 

.. 6 years flies by, life goes on, and there IS light at the end of the tunnel.

 

 

Once thing we have learned is that credit is evil, and creditors are not nice.

If we haven't got the cash, we don't have it.

A lesson our grandparents tried to teach us, but we knew better didn't we?

Well 6 years on and most of the defaults have disappeared, thank you CAG for a

ll your help

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I doubt they would show your file with no arrears, if there are arrears. The idea is that the credit file reflects an accurate situation.

 

I would have thought however, that to be accurate they would have needed to mark as an Arrangement to Pay !

 

I would just point out - that if they had defaulted you, then that would show for 12 years if this is a mortgage !

 

If you increase to the full £140.00 then it might be that they want to start charging you interest again !

 

They may or may not go for the capitalisation - unless you ask, then you will never know ! Although again, this will mean you start paying interest on the loan again.

 

If you were to go with the capitalisation idea, I strongly advise that you do this in writing and require them to respond in the same way !

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Hi citizenB, nice to hear from you after so many years!

 

Thanks for your thoughts, and I agree with everything you say. Interesting point about 12 years for a default on a mortgage - is that standard? Luckily this is the unsecured element so it's not actually a mortgage, it does show on the CRA file as "unsecured Loan"

 

I suppose it'll cost me nowt to ask so we'll see how it goes.....

 

BL

Well 6 years on and most of the defaults have disappeared, thank you CAG for a

ll your help

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it will continue to show on your files until it is repaid. Once repaid it remains for 6 yrs as a closed account.

While you are repaying it and as long as you have arrears, it will continue to show that aswell

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  • 5 months later...

Well, I'm resurrecting my thread - can't believe it's 6 months since I started this!

 

An update - so I called nram and they did a budget planner and said I should pay them £80 a month to the arrears. I said the best I can manage is £30 a month, so they increased the direct debit accordingly from June.

 

I'm now 3 months into the arrangement and it's bugging the hell out of me! The AP Marker on my credit file is NEVER going to disappear!! I wish I'd just told them to stick it back in 2010 when we hit rock bottom - almost everything else on the credit file has gone now, but this thing will be here forever.

 

I've been doing a lot of research and, thanks in particular to dx100uk, I think a different approach is in order. I am going to contact nram (in writing this time) and ask them to issue a backdated Default on the account, on the basis that I am happy to continue making a payment to the balance each month, but that I feel I am being unfairly punished for the next 10 years, whereas if I'd defaulted at the beginning my credit file would be clear in a couple of years time.

 

I believe Brigadier2JCS might be able to offer some advice on this front, if anyone can alert him to my thread please?

 

If this approach fails, I will ask them to compromise, and capitalise the arrears, and as a gesture of goodwill to remove the AP marker from my credit files.

 

I know there's no guarantee any of this will happen (unless someone knows differently) but I reckon if you don't ask.......

 

for the benefit of anyone looking in, this is how the record looks on my Noddle credit report:

 

nram_1.png

 

Here we go..!

Well 6 years on and most of the defaults have disappeared, thank you CAG for a

ll your help

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brig left cag a long time ago sadly

 

go for the backdated default

lots of people have had success with various creditors

 

don't forget to get reclaiming too!

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Interesting thought just occurred...

... Remember that this thread relates to an unsecured loan taken alongside my nram Togther mortgage.

Well back in 2009/10, I also a a "normal" nram personal loan.

 

This too had an arrangement to make reduced payments for a while,

then at the end of 2011 I had to ask them to reduce the payment further.

 

 

The letter I received in response said:

 

Dear Bradfordlad,

 

I would like to thank you for making token payments on your account.

 

To comply with the requirements of the Information Commissioner we are required to advise you that we will register your loan as being in Default with the Credit Reference Agencies". This is because you are only making token payments on your loan.

 

blah blah blah.....

 

So if the ICO required them to default me in December 2011 (when that loan was 8 months in arrears!), why wouldn't the ICO have required them to do the same when I started the AP with the Together loan in March 2012??!!

 

Useful information, or interesting but irrelevant?

 

BL

Well 6 years on and most of the defaults have disappeared, thank you CAG for a

ll your help

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Ah thats a shame dx, I liked the cut of his jib!

 

Do you know I never did anything about reclaiming anything on any of the debts!

I am so out of touch with fees/charges & what you can /can't claim for I wouldn't know where to start!

 

 

Definitely never did PPI I know that (at least not out of choice)

- is there a decent up to date guide you'd recommend?

 

BL

Well 6 years on and most of the defaults have disappeared, thank you CAG for a

ll your help

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any fixed penalty fees [arrears letter debt management phone reused DD late etc

 

I also rather suspect the building ins was misold too.

 

that letter is also useful

i'd inc a copy with you letter of complaint regarding the AP markers

 

time for an sar? too

get ALL the statements if you've never done that?

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Wow - 11 years of mortgage statements!! That will make fun reading :)

 

Presume the same applies to all other creditors too? Will I be able to obtain statements on accounts that have been sold to DCA's, even 5 & 6 years ago?

 

One question I have about claiming back charges etc - WHY can we claim back charges? Surely the banks are able to charge fees when an account is late/in arrears? They're in the Tariff of Charges. Not complaining of course if I can get something back (or at least knocked off the debt) but it seems odd that we can just say "give me back all those fees & charges".

 

Cheers :)

 

BL

Well 6 years on and most of the defaults have disappeared, thank you CAG for a

ll your help

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But Sar the oc

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Share on other sites
But Sar the oc

 

Right - SAR for all statements or as a minimum details of all fees & charges applied to the account since it was opened. Anything else I need to ask for?

Well 6 years on and most of the defaults have disappeared, thank you CAG for a

ll your help

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you don't ask for anything specific

go read the sar link.

 

 

ALL data you hold for my personal financial records

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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  • 4 weeks later...

Ok well, a little progress...

 

Received a reply to my complaint about removing AP markers and getting a backdated default.

It was exactly as I expected!

"Sorry, the AP marker accurately reflects the conduct of the account, so we're leaving it as it is".

It's like a game of chess isn't it?!

 

So - my reply is going to be

"You didn;t address my complaint - WHY did you NOT register a default when the account was in arrears, it was clear we would not be able to maintain payments at the normal level, AND you sent me a letter saying it was your policy to issue defaults as it is REQUIRED BY THE ICO?!!"

 

This time I will send them a copy of the letter as unsurprisingly they were

"unable to locate that particular letter on their document retention system".

Makes me wonder what other letters/credit agreements they might not be able to trace!!!!

 

The game is afoot!

Well 6 years on and most of the defaults have disappeared, thank you CAG for a

ll your help

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silly beggars..

you're not disputing the AP markers are not a true reflection, you are disputing the fact they never defaulted the account, as they should have, by the ICO rules at the time they started.

 

 

dx

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Did we really expect anything else from them?!!

 

Posted reply yesterday so will wait for further response......

Well 6 years on and most of the defaults have disappeared, thank you CAG for a

ll your help

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  • 4 weeks later...

Give me strength!! Response from NRAM:

 

From reviewing your account I can see that your account is split into 2 elements - one being your mortgage and the second being the secured loan.

 

The loan you referred to was an unsecured loan and was not connected to your mortgage. [this is the loan where I was told they had to issue a default notice]

 

After speaking with our Credit Amendments team, I can confirm we would normally only report aan unsecured loan as being id default if the unsecured loan was de-linked from the mortgage, when the mortgage is redeemed, if the property has been repossessed and sold, or if the customer is insolvent.

 

Based on the circumstances above, your situation does not fit into these scenarios, therefore your credit file is reported correctly as being in arrears and is now reporting the arrangement.

 

We do not mark secured loans as defaulted, and the only time we would do this is if the property has been taken into possession or the customer is insolvent.

 

 

SO.....are they trying to avoid answering my question, or am I barking up the wrong tree? They tell me to refer to FOS if I'm not happy, but I'm not sure whether to go to FOS or ICO - or both? It's not a difficult question is it? Why didn't you default when I was clearly going to be in arrears for a long time. And given this information, I'm asking you now if you would please issue a backdated default as you've put us in a worse situation than if you'd defaulted in 2012.

 

Any thoughts on anything else I should try, or do I just pursue FOS & ICO?

 

Out of interest, and not sure if I've mentioned this, but the loan is currently on 0% and will be while the arrangement is in place, so I reckon it would be cleared in 8.5 years or so.

 

Cheers

 

BL

Well 6 years on and most of the defaults have disappeared, thank you CAG for a

ll your help

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Muppets

Go ring the ico

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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