Loans over £25,000

Last updated : 23 July 2015

NRAM plc v McAdam & Hartley – Court of Appeal decision in favour of NRAM

NRAM notes the judgment made today by the Court of Appeal confirming that customers who took out unsecured loans of more than £25,000 under agreements that incorrectly stated these loans were regulated under the CCA,  are not entitled to the same rights and remedies as those customers who took out loans that were regulated under the CCA.

For loans taken out before 6 April 2008, the Consumer Credit Act (CCA) only applies where the amount we agreed to lend you (the amount of credit) was £25,000 or less.

Historically, some NRAM customers took out unsecured loans for over £25k on documents which incorrectly stated these loans were regulated under the CCA. It was legally unclear whether those customers were entitled to the same rights and remedies as customers who took out loans that were regulated under the CCA. As NRAM is fully committed to acting in accordance with the law and treating both customers and the tax payer fairly, NRAM asked the High Court for a declaration of the meaning of those agreements. The High Court considered the documentation  and decided that it meant customers were entitled to the rights and remedies applicable to a regulated agreement (in so far as this was possible). 

After considering legal advice NRAM decided to pursue an appeal to obtain fully legal clarity and secure a fair outcome for both customers and taxpayers.  The Court of Appeal has now provided its judgment and ruled in favour of NRAM.

What should I do now?

Your loan continues to operate in the normal way and you must continue to make your usual monthly payments.