High Court Decision – NRAM Declaratory Proceedings
NRAM plc v McAdam & Hartley

10 Dec 2014

NRAM plc

We note the High Courts decision today in relation to the declaratory proceedings brought by NRAM plc.

NRAM plc previously disclosed that it had commenced declaratory proceedings in the High Court to determine whether customers who took out unsecured loans above the Consumer Credit Act 1974 (CCA) regulated cap of GBP 25,000 and that were written on CCA documentation are entitled to similar rights and remedies as those who took out loans that were regulated by the CCA.

The High Court has today declared that the defendants to the proceedings are contractually entitled to the rights and remedies applicable to a regulated agreement under the CCA in force from time to time so far as capable of being applied to a non-regulated agreement. Accordingly NRAM was in breach of its obligations by issuing the defendants with statements which do not comply with the requirements set out in section 77A of the CCA and by not re-crediting to them the interest or default sums paid by them during the period of non-compliance.

NRAM is considering the impact of the declaration on all customers who took out unsecured loans for over GBP 25,000 which were written on CCA documentation and is also taking legal advice on whether to appeal the decision. Based on the High Court ruling, NRAM will make an immediate provision for the current cost to remediate the customer accounts concerned which is approximately GBP 261m, plus associated costs. All future interest accruing on these accounts, which currently amounts to approximately GBP 3m per month, will also be provided against until resolution is achieved.

Richard Banks, Chief Executive Officer of UKAR, commented:

 “We brought this case to the High Court because we are determined to act in full accordance with the law and do the right thing for both customers and taxpayers. We are disappointed by the decision because no detriment has been suffered by customers. We are now considering the impact of the judgment and taking legal advice on whether to appeal. Customers do not need to act at this stage. If any redress becomes due, we will write to all those affected to advise on next steps.”

Media Contact: Investor Relations Contact:
Brunswick UKAR
Jonathan Glass / Nick Cosgrove
Tel: +44 20 7404 5959
Email: ukar@brunswickgroup.com
Neil Vanham
Tel: +44 1274 806 341
Email: neil.vanham@ukar.co.uk


UK Asset Resolution Limited (UKAR)

UKAR was established on 1 October 2010 to facilitate the orderly management of the closed mortgage books of both Bradford & Bingley (B&B) and NRAM to maximise value for taxpayers, while ensuring that both companies continue to treat customers fairly, deliver consistently high levels of service and support those customers facing financial difficulty. Further information about UKAR is available at www.ukar.co.uk.


Press releases

UKAR Interim Results Announcement 2017
30 Nov 2017
UK Asset Resolution Limited ('UKAR') which incorporates Bradford & Bingley plc ('B&B') and NRAM Limited ('NRAM') today issues its interim results for the six months ended 30 September 2017 ('H1 2017/18').
[Read More]
UKAR Annual Report & Accounts 2017
04 Jul 2017
UK Asset Resolution Limited ('UKAR') which incorporates Bradford & Bingley plc ('B&B') and NRAM Ltd ('NRAM') today issues its results for the year ended 31 March 2017 (‘2016/17').
[Read More]
Board Changes
27 Jun 2017
UK Asset Resolution Ltd (“UKAR”) announces that Michael Buckley has today retired from his role as Non-Executive Director from the Boards of UKAR, Bradford & Bingley plc and NRAM Limited.
[Read More]
Board Change
06 Apr 2017
The Boards of UK Asset Resolution Ltd, Bradford & Bingley plc and NRAM Ltd announce the appointment of Peter Norton as a Non-Executive Director of each Company, with immediate effect.
[Read More]
UK Asset Resolution announces sale of Bradford & Bingley assets for £11.8 billion
31 Mar 2017
Bradford & Bingley plc (B&B), part of UK Asset Resolution (UKAR), today confirms that following an open and competitive process it has agreed to sell two separate asset portfolios comprising performing buy to let loans for a total of £11.8bn to Prudential plc and to funds managed by Blackstone.
[Read More]
Board Change
01 Mar 2017
UK Asset Resolution Ltd (“UKAR”) today announces that David Lunn, a Non-Executive Director appointed by UK Financial Investments Ltd (”UKFI”), stepped down on 28 February 2017 from the Boards of UKAR, Bradford & Bingley plc and NRAM Limited to take up a new position within HM Treasury.
[Read More]