Email from Cahoot re Flexi Loan

oscar52

Apparently, Cahoot are changing the T&Cs (or essentially closing)their flexi loan just recieved an email that reads:

Over the coming months we are commencing a programme to upgrade our banking systems. This means that we will be implementing some changes to our current products and processes that may impact you, although we aim to keep any changes to a minimum.


Changes to your loan
This does mean that we will be making some changes to your loan. We have reviewed the flexible loan limits for all customers and with immediate effect your limit may have been reduced. Log in to your 'personal home page' to find out what your new limit is. Then, in 30 days we will be removing the facilities to make withdrawals and balance transfers on your account.

As a result of these changes you will need to ensure that you cancel any Direct Debits, standing orders and BACs transfers that you have set up to make payments out of this account. You should continue to make repayments on your loan as normal.

This is no reflection on you or the way you have managed your account and as this is a change to the terms and conditions of your account we are providing you with 30 days notice of this taking effect. We have prepared a notice of variation to this effect and this can be found at cahoot.com/terms/pdf/flexibleloannoticeofvariation.pdf A full copy of the revised terms and conditions will be available on cahoot.com when they become effective on 11 February 2010. Please ensure you read these carefully for further information and print a copy for your reference.


Im assuming this is the next step for Cahoot removing themselves from a lending market....

clarab_3

I'm in the same boat. Gutted.

Its a long time til I am going to be debt free, so the flex loan allowed me a way of covering any real emergencies while I threw every penny at it and my other debts.

Theres no chance of me refinancing it anywhere else for a lower interest rate either, credit rating is shot.

Im only to happy to be paying it back, but once or twice over the past 3 years it really has been the only place I could turn when I needed an urgent repair or similar.

Now I guess Im going to have to divert some of my debt repayments to savings - perhaps not the worst thing ever, but sets my debt free date back a bit.

lisawood78

Yeah, I had the same mail.
It'll stop me spending too much then withdrawing what i've paid off at least.
My credit limit hasn't been changed though, has anyone else?

oscar52

Was exactly what I had been doing clarab - came in quite useful this xmas for a few quid to tide me over to new year.

As you say, was also throwing money at everything else knowing couold fall back on that if desperatly needed.

I too am in the same boat - unable to refinance (not shot, but slightly over committed (though not as much as my signature) - am sure I could get better rate than 21.9% if I was able to look.

clarab_3

Ive been thinking for a long time about opening a credit union account and saving £50 a month. I guess that will have to do, will also give me limited lending facilities if the !!!!!! really hits the fan.

Most of all though I want rid of cahoot, which I know is what they also want, but it now has NO advantages left for me.

uping my payments is a non starter - anyone got any great ideas?

oscar52

CCA request? :rotfl:

In seriousness, I too am unsure and need ideas, unfortunately, overtime is not available.

milliemonster

Yeah me too, my credit limit has been reduced aswell, got a letter from Mint today saying they are reducing my credit limit aswell, I am very upset abot it actually as we overpay everything every month and have reduced our debt significantly over the last 18 months, nothing adverse at all on my credit file but yes it looks like I am overcommitted on credit, so just when it gets better, ie, my debt to credit limit ratio improves, they reduce my limits and then it looks like I am overcommitted again, I am fighting a losing battle and don't really know what to do

clarab_3

bump in case anyone has any great ideas.

danthemoneysavingman

Great ideas? What exactly is it you want to do?

It does indeed appear that Santander are trying to take away all of the things about cahoot that are great to get everyone to leave so they can close it down. Sad day. It'll be 0% interest on the current account next.

kelr101

Has anyones limit changed? I logged on just now and mine is still the same.

Does that mean it won't change?

fiscalfool

I've had that letter too, and a friend has had his limit reduced by £15 ... was it really worth it?

What concerns me is:
Flexible loan has had it's rate increased to try to get people of the product, and it's become very much like a credit card.

However now it's not a flexible loan, and a normal loan, then when will they adjust the interest rate to match? Otherwise we are literally just bending over and taking it!