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Cahoot reducting Flexible Loan Limit
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![[Deleted User]](https://us-noi.v-cdn.net/6031891/uploads/defaultavatar/nFA7H6UNOO0N5.jpg)
[Deleted User]
Posts: 0 Newbie
in Loans
Hi all,
I have been a lurker for a while but I am a bit bemused by what Cahoot have just done that I thought I would ask if they have done it to anyone else recently.
I have just received an email from Cahoot telling me that they are reducing my credit limit by over 80%! Now I don't really care as I have requested they close the loan, which they say is not relatd, but it just seems strange that they have done this to me when I have had the loan for over a year and never missed a payment, in fact 90% of the repayments have been overpayments.
Has anyone else had their limit reduced?
I have been a lurker for a while but I am a bit bemused by what Cahoot have just done that I thought I would ask if they have done it to anyone else recently.
I have just received an email from Cahoot telling me that they are reducing my credit limit by over 80%! Now I don't really care as I have requested they close the loan, which they say is not relatd, but it just seems strange that they have done this to me when I have had the loan for over a year and never missed a payment, in fact 90% of the repayments have been overpayments.
Has anyone else had their limit reduced?
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Comments
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No but I'll let you know if it changes.
How long has the loan been inactive?"One day I realised that when you are lying in your grave, it's no good saying, "I was too shy, too frightened."
Because by then you've blown your chances. That's it."0 -
both hubby and I are having our limits reduced.
Not bothered about hubby's limit but they are planning on reducing my limit to below its current balance.....now that could prove interesting !!!!2014 Target;
To overpay CC by £1,000.
Overpayment to date : £310
2nd Purse Challenge:
£15.88 saved to date0 -
mrcrow, I made the final payment last week and cleared the interest payable on Friday, so as far as cahoot are concerned the account has been active until the weekend.
With this and the increase in interest rates, I am glad I am able to close it.0 -
There's a thread started today on the Credit Card board about this. It would appear that you're not alone!"One day I realised that when you are lying in your grave, it's no good saying, "I was too shy, too frightened."
Because by then you've blown your chances. That's it."0 -
mountainofdebt wrote:both hubby and I are having our limits reduced.
Not bothered about hubby's limit but they are planning on reducing my limit to below its current balance.....now that could prove interesting !!!!
Same here, No doubt they will try and charge for going over the limit when it's them that have reduced it! :rolleyes:0 -
Yesterday, Cahoot sent me a mail advising me that my flexible loan limit would be reduced to £100 (from an unused limit of £9K!) on the 25th July. They had also recently advised me of a reprice from 10.9% to 13.9%.
Today, I send them a secure message asking for the limit and price to be re-instated as I wished to use the account. This evening, I got the following e-mail:Dear xx
On 17 July, we sent you an email with the subject 'Important message about your cahoot flexible loan' to advise you that we are going to reduce the credit limit on your flexible loan.
Unfortunately, the new limit we advised you of may be incorrect. We apologise for any inconvenience caused by this error. We will therefore send you a new secure message on
25 July with details of your correct flexible loan limit. This new limit will be applied to your account on 26 July. No changes will be made to your account before this date.
From the 25 July, to read your secure message please log in to your personal homepage at https://www.cahoot.com and click on messenger inbox. For your security, details of your new limit will only be available on your message board. After 26 July, when your new limit is applied, you will be able to see your new available limit on your flexible loan account status page.
Your new flexible loan limit will not be less than your current outstanding balance.
You will not be expected to make any extra payments and should continue with your normal minimum monthly payments. We regularly review lending limits and these changes have been made as a result of your account behaviour with us or another financial organisation.
Regards
Harvey Griffith
Head of Customer Contact
cahoot
I'm not happy about this, because I need to use the account to clear a MBNA cc that is due to end its BT deal. I only need to transfer the balance to this account for a short time while I negotiate another deal with MBNA or open another account.
Having looked at the T&Cs, they can demand payment at any time, but they say they usually give 30 days notice. I'm thinking of transferring the MBNA balance now with a hope to clearing it off cahoot again before the 26th.
Their last message is far from clear - what do they mean when they say that my "new flexible loan limit will not be less than your current outstanding balance"? My current balance is 18p! As they are now saying that they wont tell me the limit until 25 July, do them mean current balance on 25 July or current balance today? This effectively leaves me in a state of limbo with the account - as any debit balance could be higher than the limit that they are not going to tell me about until the 25th. They haven't even bothered to respond to my point about the rate - a complete shambles!
Anyone had as similar response?
Do you think they will charge me an overlimit fee if I just withdraw £8999.82 and wait 'til the 25th?The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts.0 -
I just had the same e-mail (word for word) informing me there had been a 'mistake', Looks like we'll find out on the 25th!0
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I've just had the same email as you bert&ernie. My initial reaction to reading it is how incompetent they appear!!
Just had a look at the T&Cs and the only thing they say with regard to the loan limit is " 5.1 We will determine your flexible loan limit from time to time and tell you what it is. You can ask us to change your flexible loan limit at any time by making a request in the secure zone.
5.2 The flexible loan balance on your cahoot flexible loan must not exceed your flexible loan limit. If it does, you will need to pay the excess amount immediately."
So according to that they can do what they want with the limit and if they take it below your outstanding balance, they can ask for repayment straight away. I cannot see anything about needing to give any notice of doing it.
Also, was anyone notified about the increase in the minimum payments? Right at the bottom of the T&Cs on the website it states that from the 14th July the minimum payments are now either £50 or 2% of the balance, up from 1.75% of the balance. Does everyone agree with me that this change is to our disadvantage? If yes, then we should have been notified 30days prior, which I don't believe we have, at least I don't think I have been. Are Cahoot breaking their T&Cs?0 -
clause 8.1 states: "We can require you to repay your cahoot flexible loan balance at any time, but we will normally give you 30 days' notice".
At first, I thought the e-mail was in reply to my message. It seems they have made some sort of general error.The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts.0 -
I received an e-mail reducing my credit limit, the first reduction would have covered my oustanding balance. I also received the e-mail saying that there might have been an error with the reduce credit limit they first offered.
Now I will only find out my new credit limit the day before they reduce it.
I have a savings account with them I recently transferred the bulk of my savings to icici bank, I wonder if this is related. Perhaps I am no longer seen as a good investment for them!0
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