Cahoot Flexible Loan

teabelly

I have sent them a terse email to suggest they can't change the interest rate until mid July when the minimum 30 days for a change detrimental to the customer kicks in via the banking code. I don't expect them to actually do that.

I received this reply:

Thank you for contacting cahoot in Coventry.

cahoot operates within strict guidelines of the Banking Code and aims to provide best possible service to our customers. In line with the Code and our terms and conditions, cahoot are required to notify customers within 30 days of the interest rate change.

We have made sure that you were told about this change before it happened and I am sorry if you feel that the notification was not received in sufficient time. Whenever possible cahoot tries to keep our customers informed and up to date with the latest changes.

Sounds like a total fob off to me.

They're claiming they have to provide notice within 30 days ie could be anytime before the change and up to 30 days after! This can't be right surely....

RobsonGTO_2

ive been with them for 3 years with a £6k loan that ive been trying to pay off but been getting no where! they keep changing the APR, i thought about going for a fixed rate, but decided against it as it was 11.9 APR and my bank was better deal, so i declined there offer, now they tell me that it will be increased to 15.9APR!!!! all cos i asked about it. t*ssers!! glad my bank are helping me out to pay them off and ill have a fixed loan to pay them back....cant wait to close that cahoot account, nothing but an empty money pit!

lynzpower

Discussed this matter with my OH last night. Our guess is that the nearer you are to the limit of the loan the higher the APR is.

The ygave no notice to me OH when they took the interest ( they used to give him a few days warning by email) which has left him over drawn and over his OD limit.

It just seems like one big scam to us, and rest assured we will be talking to the FSA//TS about this as its not transparent, and thus unfair.

I suggest others who feel aggrieved do the same

teabelly

I'm not sure loan limit does make a difference. The last time I used the flexible loan the apr went up massively just after I paid off a large chunk. It went up a second time after I paid off another lump sum. I assumed this was because cahoot want to make as much money out of me as possible so they up the apr when they think people are locked in. My plan this time was to pay the minimum and then pay off the whole lot in one chunk after some sureptitious saving.

They are still advertising the loan with a typical rate which is higher than most of us on here have. I thought the FSA / ASA had decided that they can only advertise the rate which most customers actually have? I think cahoot have been throughly under hand. There should be some minimum term applied to loans so aprs can't just be upped for no reason. The bank of england rate has been the same for months so I don't see how it can be justified.

Daniel

It is unbeleivable that the rates are increasing so much, but luckily mine is only going from 8.5% to 8.9%, much less than I see others going up to.

Although i disagree with the increase i don't think it's illegal. And I certainly don't think it's to do with how overdrawn one may be. My limit is £16500 and rest assured it will be payed off due to the increase (which is quite a substantial amount).

Guys just vote with your feet, move to a fixed rate loan with someone else (most other flexi's have a very high rate) or to a 0% interest rate credit card. Northern rock, as far as i know, are one of the lowest at the moment for fixed rate loans and they are quite good! Just dont let them pressure you into they're payment protection insurance, they tried with me to the extent where i had to complain.

Dan

lynzpower

i think it IS against the law. If you get your APR increase weeks into the loan (only slighly longer than the cooling off period) Its a bloody farce.

the difficulty for my OH is that he is temping & a fixed rate loan is unlikely to be offered due to his low income. Not that they care. they could put it up to provi rate and have people over a barrell.

Consumer revenge. I am investigating.

wacko911

teabelly wrote:

I'm not sure loan limit does make a difference. The last time I used the flexible loan the apr went up massively just after I paid off a large chunk. It went up a second time after I paid off another lump sum.

You could be on to something, I have been paying off large amounts every month and then the intrest rate hike!

lynzpower

would anyone mind if they posted up

a) when they got their flexiloan
b) how much they pay offpcm
c) the interest rate they started on
d) rough idea of the dates of APR hikes & each different APR rates each time.

It will help me work out if Im onto something or not

teabelly

I got this loan mid April. I have had the flexible loan facility for several years. Originally it started out as 8.9% and then went up to 12% when I first paid off a chunk. I don't have the dates. I got it in 2002, I think the first interest rate hike was about August so it ran for 3 months before getting whacked the first time. I paid off another chunk the following March I think then it was increased not long after to 13%. I then paid off the rest as soon as I could. I finished with it after about a year. This time the interest rate was 5.8%. Amount borrowed was £4400, limit is £7k. I have paid off the minimum amount so far. The interest change was notified 2 days before the 2nd payment was due. The new rate is 8.9% I paid off £150 then. I have also been trying to set up a direct debit facility for the minimum amount but the cahoot system never actually manages to do it as the direct debit never appears in my online list of direct debits with my bank. Without constant vigilence I would have already lost £60 in late fees :mad:

I am wondering whether it is the amount of times you complain to their customer service which affects your rate?! I moaned about the direct debit facility not working and then the rate went up. I wonder how long they 'review their competativeness in the market' and whack up the interest rate once more :rolleyes: I have heard rumours that basically they alter rates depending on how much money they think they're going to make out of you rather than the relative risk.

lynzpower

Im not sure teabelly, as my OH hasnt complained to them at al ( although he has asked nicely for them to return the charges as and when and they have always instantly agreed to this)

Id love to hear from others too, if anyone else has their info.
I think Ill have a quick word with our freinds at consumer direct later