NRAM - Current CCA non conformance - Redress due.

[lennonc1]

Hello everyone,

I am new here and was looking for some advice on my mortgage.

I have the notorious Northern Rock(Asset Management)Together mortgage, part secured, part unsecured. We have recently found out we are due redress on the unsecured loan as they have not complied with CCA 1974. They say they will reduce term of loan to rectify charging interest from 2009 to present, still non compliant.
I have complained that I do not wish the terms to change without my consent and to pay what they owe directly, they have sent standard response saying they taken advice from lawyers and believe that their method of remediation is the best.
I have drafted letter to the FOS, but was told by nram staff that they would side with them as this apparently has came from government decree....last I knew the government were not the law.

I hope to have this resolved with the FOS but if not do I take it to small claims court - Have a feeling it will be more than £3000 though.

There is a lot of us in the same position and thought about group action, what are your thoughts on this as a last resort.

I have asked my lawyer if I can ask for the money paid back to me directly as they have came out my bank illegally and he said, sure you are quite within your rights to ask for it back in form of cheque.

So now very confused as to what my rights are, as Nram are basically saying I have none on this matter and they can dictate how this is repaid. I signed an agreement not a dictatorship!!1

Thank you in advance for any help or advice on this.
C

[MrsD]

Re: NRAM - Current CCA non conformance - Redress due.

Welcome to AAD

this is not something I'm familiar with but someone will be along shortly.

one thing I would say is never ever believe that a financial institution will tell you the whole truth, in my experience it doesn't usually work like that.

[PlanB]

Re: NRAM - Current CCA non conformance - Redress due.

I see you're based in Scotland so I'll need to check out the different housing law but I'll get back to you on Monday.

[lennonc1]

Re: NRAM - Current CCA non conformance - Redress due.

Thank you MrsD,

Oh I know too well financial institutions do not tell you the whole truth, they knew about this for along time and continued to collect unlawful and immoral payments. There has been no end to the problems with Nram. I am ready to do something about it and fight back now.

[lennonc1]

Re: NRAM - Current CCA non conformance - Redress due.

I see you're based in Scotland so I'll need to check out the different housing law but I'll get back to you on Monday.

Thank you planb,

Its not too different here, the unsecured loan is the one that is non compliant, covered by CCA 1974 so shouldn't be secured on the property (unless it has been securitised) but they try and make you think that as it was a part and part package deal mortgage.

[MrsD]

Re: NRAM - Current CCA non conformance - Redress due.

I see you're based in Scotland so I'll need to check out the different housing law but I'll get back to you on Monday.

thanks PlanB just the person i was hoping would pop along

[lennonc1]

Re: NRAM - Current CCA non conformance - Redress due.

Hello,

I am getting there with starting NRAM Action Group officially, any advice you can give me would be much appreciated.

I have copied below what I have sent to FOS -

Niddy I hear your the man, I need your help...can some one point him in this direction please.

FOS Complain (Draft)

We have a mortgage package from Northern Rock (Asset Management) called ‘Together’ mortgage, part secured(FSA Regulated) and part unsecured loan (CCA 1974 Regulated). We have received word that we are due redress/refund of interest payments made from Oct 2009 to present.

As NRAM have not complied fully with the CCA 1974 section 77, the debtor should have the right to choose how the redress is applied. The money paid to NRAM is not legally theirs, as it was collected illegally and in breach of CCA 1974 section 77.
NRAM being the party who is in the wrong should not be able to simply dictate how and when any compensation or redress should be applied.

We do not wish to receive any redress due to us, due to NRAM's breach of CCA regulations regarding our unsecured loan by way of reducing the loan term.

We wish it to be paid directly to us in the form of a cheque, as customers who have repaid their loans will be. We do not see why we should be treated any differently to customers who have repaid their loans, and feel by not giving us any choice other than reducing our balance we are not being treated as equally as ex customers or indeed fairly. We do not feel that reducing our balance fully compensates us for the financial loss we suffered. Money was taken in interest from our bank account over the period of non-compliance and we feel it only fair that it returns there, we would also ask that as NRAM has deprived us of this money and now must return it that statutory interest is added. On completion of the loan we agreed to a term of loan and signed accordingly. We would therefore prefer to be repaid the amount that has been taken and shouldn't have been and any interest so that the original term of the agreement still exists.
We have also asked that our balance is not reduced with the redress until this matter is resolved.

We believe that NRAM does not have the power to dictate terms of settlement/redress, to do so would be an abuse of their position.

NRAM have benefited from their breach by accumulation of interest from the payments they took illegally from customers. Interest has been accrued on the unlawfully collected payments and this has not been factored in. NRAM may also be incorrect in the sum of redress offered and have been wise not to disclose a detailed statement of the interest payments during the period the interest should not have been collected.

We, the customer have suffered a loss, as paying a loan which has been non-compliant; we have defaulted and have arrears on other credit which in turn has caused an adverse effect on credit file. If we had not been paying NRAMs unenforceable loan, we could have paid off other credit.

NRAM in the short term is not affected by this issue as effectively they have received a loan from the customer and can forecast this over a number of years, whereas the customer will have to wait a number of years before reaping any benefit from this. In the short term, whilst NRAM had illegally collected interest payments not due to them, they are the ones who will accrue the interest; therefore they are accruing interest on a sum of money not due to them and effectively will not be affected by this in the long term. On the other hand, the customer has lost interest on a sum of money that could have been distributed elsewhere and will miss out on accruing interest on this sum over a number of years with only NRAM seeing the benefit. NRAM has also failed to mention the fact that the customer should be liable for compensation and statutory interest on the payments that were unlawfully collected.

The communication has been virtually non-existent from NRAM - Was told I couldn’t speak to member of unsecured loans team (or told they wouldn’t speak to me) to get information about the situation. (Calls recorded). Communication about our compliant make it apparent from the outset that the firm hasn’t taken the investigation in accordance to the rules, the final response was not personal to our complaint.

I believe I have been deprived of my rights - (Financial relief) in (Consumer Credit Act 1974 (S) 132)
Unfair relationship arise due to unfair changes in terms, breaches of current or future law, breaches of guidelines and regulations, by doing this it harms the collective interests of its uk customers.

We have been told that there is no guarantee that FOS will be unbiased and impartial on this matter. (Trying to put us off raising the complaint with FOS).

This issue should not be swept under the carpet by NRAM; they have unlawfully collected payments from customers and are in no position to dictate how this money should be redressed without consultation of its customers.

I believe due to the length of time that this breach has continued and still continues, NRAM have knowingly enforced illegal and immoral collection of payment. Therefore these payments should be reimbursed in kind with statutory interest.

We have taken every possible step a customer can take in attempting to resolve the issue with no avail.

I consider this to be reasonable, just and fair, and taken into account the type of action/relief that a court might grant.

[PlanB]

Re: NRAM - Current CCA non conformance - Redress due.

I am new here and was looking for some advice on my mortgage.

I have the notorious Northern Rock(Asset Management)Together mortgage, part secured, part unsecured. We have recently found out we are due redress on the unsecured loan as they have not complied with CCA 1974. They say they will reduce term of loan to rectify charging interest from 2009 to present, still non compliant.
I have complained that I do not wish the terms to change without my consent and to pay what they owe directly, they have sent standard response saying they taken advice from lawyers and believe that their method of remediation is the best.
I have drafted letter to the FOS, but was told by nram staff that they would side with them as this apparently has came from government decree....last I knew the government were not the law.

I hope to have this resolved with the FOS but if not do I take it to small claims court - Have a feeling it will be more than £3000 though.

There is a lot of us in the same position and thought about group action, what are your thoughts on this as a last resort.

I have asked my lawyer if I can ask for the money paid back to me directly as they have came out my bank illegally and he said, sure you are quite within your rights to ask for it back in form of cheque.

So now very confused as to what my rights are, as Nram are basically saying I have none on this matter and they can dictate how this is repaid. I signed an agreement not a dictatorship!!1

Thank you in advance for any help or advice on this.

I didn't get back to you because I saw you already had a lawyer advising you on this issue and they will know what's best.

I also see you are getting help elsewhere and sometimes too many cooks can spoil the broth.

http://www.legalbeagles.info/forums/...644#post325644

I hope it goes well and that you'll come back to update us on your progress

[lennonc1]

Re: NRAM - Current CCA non conformance - Redress due.

Hi planb,

To be honest I didn't know where to turn, so I had posted on a couple of different sites but you are right, not had much help.
I have spoke to two lawyer, one says challenge them, it is your cash, the other says they can do it, something about offset!
So I am still none the wiser as what to do for the best.
Nram have now adjusted my loan, even though my complaint is with fos and in dispute and I had written to them to say DO NOT redress loan as it is in dispute. They really don't take wishes of customer into account.
Now this makes things harder to deal with. They say that they can do it without consent as it would mean the loan was at detriment. I just don't understand enough lol.