Cahoot Flexible Loan Feedback

Former_MSE_Dan · 31 October 2005 at 12:44PM

Hi Guys,

We're looking for some feedback from any of you who have a Cahoot Flexible Loan product, and specifically anyone who took it out over 12 months ago.

On the product info page at Cahoot it states

Cahoot_Website wrote:

The rate you will pay after one year will be the rate then applicable to the cahoot flexible loan. The rate is variable but currently the equivalent rate is a typical 8.5% A.P.R..

We've recieved some emails from site users saying that after the first year, their loan did jump to this high rate - has anyone else had this happen to them?

Thanks in advance for any feedback, I'm sure they'll be really useful, as always!

Cheers

MSE Dan

keithboy40 · 31 October 2005 at 12:55PM

this happened to me. loan rate was 5.7% and after 1st year jumped to 8.5%. i do not recall reading anywhere about the jump in rate when i took it out. i contacted cahoot and they stated that was the original deal.

Woby_Tide · 31 October 2005 at 2:12PM

can't remember what rates I've had on mine, current is 9.5%, from memory it started off around 7% but I've had it since before 2000 I think

benjilloyd · 31 October 2005 at 10:05PM

MY GOD! This is exactly what has happened to us!

The way I was made to feel after reading the mail was "durr, this was the idea all along", ie: it was always going to change to 8.5% ... I had thought we were going to get the 5.8% *forever*.

It's a real shame as the Cahoot Flexible loan has been perfect for us. We don't want a massive loan and want access to the money ad-hoc and pay it off in big lumps and/or regular amounts.

It looks like there's a few of us this has happened to, I would *really* *really* appreciate those people keeping in touch as soon they've found somewhere to move to. I will do the same!

Thanks Dan for the post.

ben.

This is the mail we received:

Your rate of 5.8% APR was an introductory promotional rate. As the promotional period has ended, the interest rate on your Flexible Loan account will move to the rate which currently applies to our flexible loan, which is 8.5% APR

I don't remember reading/being told it was introductory when we took out the loan, although I bet there's some small print that will prove me wrong!

benjilloyd · 31 October 2005 at 10:29PM

UPDATE

I found that I had saved to disk all the original web pages with T&Cs etc.

There's certainly no mention of an introductory rate.

Furthermore, I found this:

12.4 We will notify you in writing within 30 days of any change in interest rates. We will give you at least 30 days prior personal notice of any change in our day to day charges.

Ignoring the issue about the initial rate being "introductory" we received the original email stating the rate would change on Oct 28, the rate changing on Nov 8 is hardly 30 days notice, although I guess their argument is that it's "within" 30 days which is a little bit nastly INHO :-(

Herb · 31 October 2005 at 11:45PM

Hi Dan

Yes I have had this email, and I maybe one of the posters that prompted your interest

I am adamant that there was no mention of a 'promotional rate' on their web site 12 months ago. There is absolutely no mention that rates would rise after 12 months on my agreement.

I was, after all, referred to Cahoot by MSE and I know - as sure as dammit that Martin would have red flagged that!

If I knew that the interest rate on my £20,000 could rise by 47% after 12 months I would have borrowed the money from another source - a source not available to me today.

When I queried the 10 days v 30 days the manager I spoke to actually said that the use of 'prior' in the T&C meant that they could in effect give me 1 days notice, and that 10 days (to clear my 20k loan) was perfectly reasonable.

Nice - super customer relations.

I have had 'variable' rate personal loans in the past and they have never risen (or fallen) even in times of Everest climbing rates.

And yes, I was aware that Cahoot's rates could vary, but imagined that they could vary broadly in line with bank base rate. The Bank of England Base Rate is the same rate as when I took the loan, not 47% higher.

I feel very bitter about this - I am unable to switch to another lender as I need a clean credit rating for future business borrowings.

I have written to Cahoot - waiting for reply - and am getting geared up for Trading Standards letter.

benjilloyd · 1 November 2005 at 9:01AM

Another update

I just called Cahoot, they explained that all throughout the application process it would have stated that this was an introductory rate.

Obviously I don't remember that.

The lady I spoke to did actually say that the Credit Agreement I would have agreed to would have detailed this introductory fact - The summary I have doesn't mention it so I wonder what she is referring to, surely I would have received a copy.

I was asked to write to Cahoot to a named individual. I don't feel comfortable putting someone's name on the forum so if you want the address please call Cahoot like I did.

Having just checked through all the original emails I received when I applied for the loan there is no mention of the word intro.

Bugbird · 2 November 2005 at 1:37PM

I have had an email with a rate hike, I don't recall being told this was an introductory rate.
Cheers
Greg

W1zz · 2 November 2005 at 2:00PM

My Cahoot Flexible loan rate is currently set at 5.8% APR

I don't have anything on it and haven't used it for over 12 months - The accounts been open for 2-3 years with a £10K loan limit, so it isn't an introductory rate I have.

W1zz

redrose001 · 2 November 2005 at 9:29PM

Yes, the interest rate on our cahoot flexible loan has suddenly, it appears, gone to just over 9 %.
We want to make a one off payment to clear the loan, but when we tried to, a message comes back saying, " email cahoot for a quotation for the final amount".
So it appears we are going to have to pay charges.
Does anyone know the rate of charges for repaying the loan . Or would it be better to pay most of it off and leave say £100 on and repay that later.
Bye

benjilloyd · 3 November 2005 at 9:45PM

There is no charge for paying off the loan, the reason that message appears is that interest from the last point you made a payment to the time you pay it off will need to be calculated. I just did a quick calc to work it out and rounded up last time I paid it off.

Cahoot Flexible Loan Feedback

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free