Northern Rock Angers Current Customers on Unpredicted News
Northern Rock split into Northern Rock Asset Management and Northern Rock PLC in December 2009. Already it has been accused of not treating some customers fairly regarding this remortgage process.
After Northern Rock claimed it would waive or reduce early repayment charges for customers wanting to displace their mortgage and remortgage with other lenders, a grey area surfaced. Of course Northern Rock insists that all customers have been treated fairly. Not true said one client, "The original mortgage terms were fully portable but I’ve now been advised that the product is not portable, Northern Rock Asset Management can’t lend any more money and we can’t even remortgage to Northern Rock PLC. without paying the early prepayment charge." This client felt even more frustrated upon hearing that other clients were not treated the same as he had been. The bank stated that "if certain criteria were met" some clients had their repayment charges waived. In a statement on the company website Chairman Richard Pym said, "Economic conditions remain challenging and have placed increased financial strain on many households, and we remain committed to the fair treatment of all our customers." The Financial Secretary to the Treasury believes Northern Rock should handle the matter themselves but then said, "There are mechanisms in place to resolve it through the Financial Ombudsman Service and I think that’s the best route for people to go."