Skip to main content

Northern Rock (Asset Management) plc

Volume 566: debated on Monday 15 July 2013

On 11 December 2012, I informed Parliament via a written ministerial statement—Official Report, column 20WS, that UK Asset Resolution (UKAR) had identified a pool of unsecured loans in the Northern Rock Asset Management (NRAM) portfolio where the loan documentation was not compliant with Consumer Credit Act requirements.

As a result, UKAR’s board commissioned Deloitte to conduct an enquiry into the specific circumstances of the issue, and any implications for UKAR’s broader internal procedures and controls. Deloitte has concluded that the defects in CCA regulated loan letters and statements were created in 2008, before UKAR was established. The summary of the report, along with the recommendations on strengthening risk functions, is being published on UKAR’s website today. UKAR’s board has accepted all of Deloitte’s recommendations and has tasked senior management to develop an implementation plan, which the UKAR board will hold senior management to account on delivering.

The link to the report can be found here: http://www.ukar.