Cahoot Rip Off (merged)

happy_chick_3 · 4 December 2006 at 2:00PM

Having had a flexible loan with cahoot for a year my rate recently went up from 6.9% to 9.2% at the end of the promotional period.

I am shocked to have recieved an email from them a week later saying that they are changing the standard rate on this loan rom 9.2% to a whopping 14.9%!!!

Theis is only about 2 weeks until the rate increases so anyone who has one of these loans - MOVE IT QUICKLY!!!!

Insert By Martin

This really isn't good play, by Cahoot. The following note is going in the weekly e-mail...

WARNING: Cahoot Flexible Loans... Rates are being hiked to exorbitant levels
Not long ago it was a darling of the loan market, very cheap and flexible. Unlike normal loans, the risk of taking a flexible loan is the rate can change at the lender's whim. Now many Cahoot customers are having rates hiked by huge amounts, up to 19.9% ( it was once around 6%). This is a horrid rise, and rumours are it's a deliberate attempt to get customers to switch it to its parent, the Abbey's standard loan. Well avoid that, it's not particularly cheap, instead read the Cheapest Loans Article to find the cheapest, then ditch and switch. Discuss this

lynzpower · 4 December 2006 at 2:16PM

yet another one of us in the cahoot rip off trap.

look about hapy chick theres LOADS of us who have had this experience.

Dump them asap :mad:

spamalot · 4 December 2006 at 2:56PM

Yep, know what you mean. I've just paid off a large chunk of cahoot and moved the rest onto a Mint card at 0%.

I knew that they would be putting the rate up to 9% ish but didn't realise they'd then push it to 14%!!! Cheeky so-and-so's!!

Dave_Sk · 4 December 2006 at 10:49PM

I've just been stung by Cahoot! They are upping my interest yet again but this time to over 14%.. Looks like I'm not the only one. Anyway, I have had enough and I want a replacement and was after some expert advice.

I currently use my cahoot loan lots. I'm self employed so I instead of paying my tax monthly I have to save it up each month and pay it yearly. Rather than saving it in a savings account I have been paying off my cahoot loan, keeping the interest low, with a view to borrowing the money again when it's time to pay my tax. In addition to that, any money I take from work goes into cahoot, again to keep the interest down, and at the end of the month I take some out for my wage, and if I need to buy stock I just withdraw some out. I kind of use it like a bank account which has a huge overdraft. The balance varies from £3000 to the max of £9000 depending on the time of month and whaty stock I have bought.

Anyway, can anyone suggest a decent alternative, if there is one?

Priorites in order of importance are...

Flexibilty - need to be able to pay money in and withdraw money online and have the money at it's destination in 3-4 days.

High limit - cahoot's limit is £9k, I would need at very least £5k to play with

Low interest rate - obviously the lower the better!

What about The One account? I have about £25k on my mortgage, would the one account fit the bill or is there something else better?

Cheers!

Barry_BURBs · 4 December 2006 at 10:57PM

I too have had the Email with the wonderful news (not) :

From 6 December your rate will change to 9.4% APR and on 19 December your rate will change to 14.9% APR variable.

They offer switching to a fixed rate (typical) 5.8% but we wanted to pay off more than normal each month.

We need to work out what to do next but I'm seriously falling out with the Abbey (who have our mortgage also) and will be jumping ship ASAP.

sweetnest · 5 December 2006 at 12:11AM

just had this too, only owe £1000 , interest started off at 5% something, then after the first year went up to 9% something and two months later this !!!! but i`m trying to find the best credit card for the first time in my life to do a balance transfer....any ideas anyone ???

tom188 · 5 December 2006 at 12:13AM

sweetnest wrote:

just had this too, only owe £1000 , interest started off at 5% something, then after the first year went up to 9% something and two months later this !!!! but i`m trying to find the best credit card for the first time in my life to do a balance transfer....any ideas anyone ???

look on the credit cards board, ive answered dozens of this sort of question recently.

sweetnest · 5 December 2006 at 12:14AM

ok, going there right now...thanks

Phoenix79_2 · 5 December 2006 at 8:24AM

Natwest do a 'flexible' loan for amounts over £5k.
http://www.natwest.com/personal02.asp?id=PERSONAL/BORROW/LOANS/FLEXIBLE_LOAN
Might be worth looking into that?

lynzpower · 5 December 2006 at 8:50AM

the coop and the post office do one with no early redemption ppenalties, but of course you cant reborrow it.

mrke · 5 December 2006 at 9:59AM

Abbey the owners of Cahoot have withdrawn it from the loans market and I guess they want everyone to leave so that Cahoot can be closed down.

I too received the rate rise email although I have not used this account for sometime.

Cahoot Rip Off (merged)

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