Frequently asked questions

Can I increase my NRAM Loan?

Following nationalisation, Unfortunately NRAM is closed to any new business. If you would like to increase your loan you may be better off searching the market to find a loan with another lender, or speaking to a financial advisor.

How do I find out how much I have left to pay?

You can contact us or look at a recent statement that will confirm how many repayments you still have to make, the payment amount, the date the payment is due, how much interest is charged and how much of the loan is capital. Please note you will receive a statement on an annual basis.

My circumstances have changed and I can no longer afford the monthly payment on my loan, what can I do?

There may have been a change to your circumstances, such as unemployment, decrease in salary, disability, illness, relationship breakdown, death of partner, parental or carer leave. Where you are unable to afford the contractual monthly payment we will work with you to set up an affordable repayment. We will base this on your reduced income and expenditure and you will need to complete a Financial Statement.

If you are having financial difficulties we strongly recommend you also seek free and independent advice from a range of external organisations who can help.

Why do I need to complete a Financial Statement or Budget Planner?

This will enable us to review your financial position and assess your total income and expenditure. This allows us to decide how much income is available to share among all your creditors.

How is this affordable repayment calculated?

We will deduct from your income all priority debts for example mortgage, rent, council tax as well as provide for reasonable day-to-day living expenditure based on your individual circumstances. We calculate the day-to-day living expenses following the guidelines provided by the StepChange debt charity. You can then use the remaining amount to repay your debts on a pro rata payment basis.

What does pro rata payments mean?

Offers of payment to all your unsecured (non-priority) creditors are based on a "pro rata distribution" of your available income. This means you offer all your creditors a fair share of what you can afford.

What happens if you reject my offer of reduced monthly payments?

We will always treat customers fairly and reasonably. We consider all cases of financial difficulties sympathetically and positively. Based on information available we may ask for a higher repayment than offered. However, we will always calculate this on a pro rata basis.

Will you take more action while I continue to pay my reduced payments?

If we agree with the Financial Statement and there is no evidence that you are taking new credit, we will take no further action while you maintain the agreed payments.

What happens to the arrears on my account when I'm in financial difficulties?

The arrears will remain on your account. We do not insist that you make up the shortfall in your payments. However, if you are unable to pay more throughout the term of your loan, the remaining term will increase and it will take you longer to pay the balance of your loan in full. You will not incur additional interest charges for the extended period.

Why have I received a Notice of Sums in Arrears when you have agreed a reduced payment arrangement?

Following changes brought in by the Consumer Credit Act 2006, we must tell you that your account is in arrears. The notice does not affect temporary reduced payment arrangements. We will send a subsequent notice if your account remains for six months.

Will my change in circumstances affect my Credit Rating?

This may affect your ability to get credit and mortgages in the future, or increase the cost of credit because of higher interest rates being charged.

Will you contact me while I continue to pay my reduced payments?

We will check your credit activity throughout the agreed period of reduced payments. If we see any evidence of a change in your circumstances such as further credit applications, use of credit or clearance of other debt we will contact you to review the payment arrangement.

What happens when the temporary reduced payment arrangement ends?

We will write to you about 1 month before the payment arrangement expires. If you are still in financial difficulties we will need you to complete a new Financial Statement with full details of your income and expenditure such as wage slips and bank statements.

Will I incur any charges?

We will not charge you for being in a repayment plan. You will also not incur any additional interest charges. We will charge £7.50 Direct Debit fee for any payments returned unpaid. Please be aware that some companies may charge a fee for managing your debts.

What should I do if my circumstances improve?

Please tell us about your change in circumstances. We may need you to complete a Financial Statement and we may ask for an increase in your monthly payment.

Can I claim on my Payment Protection Insurance (PPI)?

If you would like any more information about PPI please visit the Payment Protection Insurance section of our website.