Cahoot Flexible Loan Feedback

Bugbird

Update
I have asked Cahoot for a settlement figure, I shall be taking my loan elsewhere now. I let them know that the reason was their unreasonably rate rise.
Regards
Bugbird

Herb

Cahoot have told me in an email that their web site in July 2004 clearly said the the rate was a 'special limited offer' and that the wording and layout was the same as todays web site. ie 5.8% promotional rate rising to 8.5 % after one year.

Does anybody recall this?

My agreement has no mention of a 12 month rate - I strongly suspect that they introduced this after my application.

If so does anybody have a later loan agreement that does mention the promotional rate for 12 months?

W1zz

Hope this helps....

My last email from Cahoot re: My Flexi loan savings rate was on 22 March 2005 as below:

Dear Mr xxxxxxxxxx,


Your low rate just got lower
I am delighted to inform you that you have been chosen for a fantastic reduction in the interest rate on your cahoot flexible loan.

The rate on your loan has just been cut from 8.5% APR to 5.8% APR - that's a great reduction of 2.7% APR! This gives you the perfect excuse to start making the most of your money today.


Treat yourself today
Want to increase your spending power? Want to fund those home improvements or book a well deserved holiday? Whatever your plans your cahoot flexible loan is the easy way to realise them.

Why you are better off
Your newly reduced interest rate means that you can afford to make the most of your funds safe in the knowledge that you will pay less in interest every month on any amount borrowed - meaning you could pay off your balance faster too!

And that's not all - if you have any balances on cards, overdrafts or loans that charge a higher rate of interest, you could be better off simply by transferring your outstanding commitments onto your cahoot flexible loan.

Enjoy total flexibility
Remember, you can make as many withdrawals as you need each month, of any amount, up to your agreed loan limit. You can also enjoy the flexibility of varying your repayments each month* to suit you without paying any penalties.

Take advantage now
Don't delay - make the most of your cahoot flexible loan and treat yourself today. Just go to cahoot.com, log in to your personal homepage, click on flexible loan, go to 'withdraw funds' and take out as much as you need (up to your loan limit). The money is ready & waiting for you. You've made the effort and opened an account - now make the most of it and take advantage of your fantastic new interest rate too!

Yours sincerely,


Harvey Griffith
cahoot, Contact Centre Manager

PS - If it is some time since you last used your cahoot flexible loan, then please check with your bank that the direct debit that you set up to cover your minimum repayments is still active.




*A minimum monthly payment is required.

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No mention at all about it being a promotional rate.

My rate is still set at 5.8%APR although I don't have any balance on it.

W1zz

eml_3

Yes, ours has risen as well, and there was never any mention of it being an introductory rate. Although I had a look at the T&Cs last night and it does say that it can rise, I think this is a bit cheeky.

Herb

W1zz wrote:

Hope this helps....

My last email from Cahoot re: My Flexi loan savings rate was on 22 March 2005 as below:

My rate is still set at 5.8%APR although I don't have any balance on it.

W1zz

Thanks for the reply - this is a bit different as you had an agreed loan that they have reduced, to encourage you to use it.

This post could be put to bed if:

Anybody who took a loan at around July04 or before can remember that the rate was promotional - and better still has proof.

If not - lets take it further!


It would also be useful for our argument if anybody who took a loan later than July 2004 has details of the promotion on their Credit Agreement - I don't have such detail on my Agreement - and could then argue that they are forcing me into an arrangement that was running after my loan was taken.

benjilloyd

Herb, Are the Terms and Conditions any good? I saved all the web pages when I applied for the loan, unfortunately I didn't save the actual application screens which is where Cahoot told me it would have stipulated the introductory fact.

Herb

The T&C's do not mention rates - but thanks anyway.

MSE_Martin

OK I've been having a bit of a rant at Abbey (Cahoot) over this and trying to work out what happened

It seems this is all about creeping rate rises. The Cahoot rate is a intro rate for a year with a back up standard rate. That used to be at 6.5%, but they've continued to up it at the last 18 months one little creep at a time and now its at 8.5%. I thik its a very poor show.

One solution is to convert your loan into the fixed rate loan that is much cheaper. However overall a poor show by Cahoot

Herb

Cahoot have provided me a screenshot of the web page up between 4/6/04 and 22/9/04.

It is very clear that the rate will rise after 12 months to 8.5% (not 6.5% Martin)

It is so clear that I am gobsmacked that I missed it - so clear that I almost don't believe them.

moni72

I joined Cahoot in November 2003 and still have ALL the paperwork for my flexible loan. I cannot find anything suggesting that the original rate (which was 5.8% I think) was only an introductory rate. In fact I do recall that it was not advertised as an introductory and that's why it was appealing!

What is strange though is that my Credit Agreement with them says "The interest rate for withdrawals and balance transfers is a monthly rate of 0.5289%" and then "The APR for withdrawals and balance transfers is 6.5% (variable)." But I'm not quite sure what to interpret from that?! Does anyone else have an interpretation?

I have received about 2 or 3 emails from them (still have copies of those too) stating interest rises. If I recall correctly it jumped to 6.5% then 7.something% and it is now 8.5%.

I stopped using Cahoot when the rate rose and only use it now when trying to shift debt to new 0% deals or borrowing for a short period as I can easily pay it back with no penalties.

However, it is very disappointing.