Email from Cahoot re Flexi Loan

barncourt

I'm wondering what the limitations are to applying a variation to the T & Cs for such a loan? Because in essence now, the product is completely different to that I original signed for. No longer flexible, high APR, and no longer accessible online.... I'm actually going to start asking some detailed questions about this because there must be restrictions on how much a product can be changed, otherwise a lender would be able to add any clause they liked to the agreement after you signed it.

Interestingly, the original agreements produced by Cahoot don't appear to contain a clause indicating they can "transfer" your loan on to a third party. I've already asked them to comment on that bit.... I'm not in default on the account, but a bit !!!!ed at their attitude.

clarab_3

barncourt wrote: »

I'm wondering what the limitations are to applying a variation to the T & Cs for such a loan? Because in essence now, the product is completely different to that I original signed for. No longer flexible, high APR, and no longer accessible online.... I'm actually going to start asking some detailed questions about this because there must be restrictions on how much a product can be changed, otherwise a lender would be able to add any clause they liked to the agreement after you signed it.

Interestingly, the original agreements produced by Cahoot don't appear to contain a clause indicating they can "transfer" your loan on to a third party. I've already asked them to comment on that bit.... I'm not in default on the account, but a bit !!!!ed at their attitude.

would be very interested to know how you got on...

v0n

As someone said above, people took revolving flexible loans at 7%, just to end up with usury at 22-25% and available funds adjusted regularly to minimum with every payment. It was douchebaggery of huge proportions the first time Abbey hiked interest and robbed everyone's account, especially those who didn't use full extent of their loan. At the time I had sale of something agreed, just to find out my funds were suddenly made unavailable to me, for no reason. Couldn't apply quickly for another loan, because well - technically I still had one, just reduced by 3/4 one day, without as much as apology in my mailbox.

But we know now that Abbey was a sinking ship clutching at straws. For Santander to repeat it again, that's just below belt. To me the whole Abbey/Santander will from now on forever remain this kind of setup - leading customers on with low APR, then pull !!!!!! Turpin on their wallet and treat them like some sort of subprime loanshark. I am in a position to pay the reminder of my loan off in one go, close it down and never mix again with anything related to that whole Santander corsair thing, those who can't escape I wish good luck and you have my sympathy. We know already, from previous experience with Abbey, that any bank to scrap the bottom of the barrel for every penny like that never stays afloat for too long...

Cell

clarab wrote: »

would be very interested to know how you got on...

As indeed would I:)

barncourt

Bit of an update for you all. Have basically posted off a letter to Cahoot pointing out my dissatisfaction with the proposed changes to my flexible loan, and asking them to provide me with a copy of all relevant data held on me by the bank for me to review under the DPA. Hinted that I believed an "unfair relationship" may now have developed due to the extensive changes made to the account since the original agreement was signed. Sent it Recorded Delivery... Now getting calls from the Cahoot call centre which unfortunately I have missed so far - someone obviously wants to have a chat with me all of a sudden. Still making payments on time to the Flex Loan account. If they call tomorrow will be interesting to hear what they have to say... Bet they try and fob me off. Also, I notice they still haven't updated the web-site as indicated to remove access to the account details, nor stopped the ability to withdraw cash from the Flex Loan, contrary to that stated in their e-mails. I think it was supposed to have stopped end of January. All very strange... If they want to introduce the changes they are proposing, the least they could do would be to reduce the APR to a more competitive rate!

Will provide a further update once I've had a chance to chat to them.

Caboot

barncourt wrote: »

Bit of an update for you all. Have basically posted off a letter to Cahoot pointing out my dissatisfaction with the proposed changes to my flexible loan, and asking them to provide me with a copy of all relevant data held on me by the bank for me to review under the DPA. Hinted that I believed an "unfair relationship" may now have developed due to the extensive changes made to the account since the original agreement was signed. Sent it Recorded Delivery... Now getting calls from the Cahoot call centre which unfortunately I have missed so far - someone obviously wants to have a chat with me all of a sudden. Still making payments on time to the Flex Loan account. If they call tomorrow will be interesting to hear what they have to say... Bet they try and fob me off. Also, I notice they still haven't updated the web-site as indicated to remove access to the account details, nor stopped the ability to withdraw cash from the Flex Loan, contrary to that stated in their e-mails. I think it was supposed to have stopped end of January. All very strange... If they want to introduce the changes they are proposing, the least they could do would be to reduce the APR to a more competitive rate!

Will provide a further update once I've had a chance to chat to them.

I too had my credit limit reduced on my Flexible Loan. I wonder if the changes to cahoot's T & C's would come under the Office of Fair Trading's 'Unfair Terms in Consumer Contracts' regulations.

Here's a couple of paragraphs from the OFT's guidance relating to variance of terms.

Schedule 2, paragraph 1, states that terms may be unfair if they have the object or effect of:

(j) enabling the seller or supplier to alter the terms of the contract unilaterally without a valid reason which is specified in the contract.

10.1 A right for one party to alter the terms of the contract after it has been
agreed, regardless of the consent of the other party, is under strong
suspicion of unfairness. A contract can be considered balanced only if both
parties are bound by their obligations as agreed.

10.2 If a term could be used to force the consumer to accept increased costs or penalties, new requirements, or reduced benefits, it is likely to be
considered unfair whether or not it is meant to be used in that way. A
variation clause can upset the legal balance of the contract even though it
was intended solely to facilitate minor adjustments, if its wording means it
could be used to impose more substantial changes. This applies to terms
giving the supplier the right to make corrections to contracts at its
discretion and without liability.

As discussed earlier in the thread, people took out a flexible loan because it was just that, 'flexible'. If cahoot wish to take away the main benefit of the product, the flexibility, they are not complying with the above guidance.

Cell

Very interesting - thank you for that.

The next question is how that might help Flexible Loan holders. If the product is withdrawn then it's withdrawn. They have the right to do that.

If they put the interest rate up between the notice of, and the withdrawal of, credit facilities then that may be unfair, and certainly if they put the interest rate AFTER it's closed on existing borrowings it could be unfair.

But for rates already increased what is the remedy? My last interest rate increase was 18 months ago. I accepted it, by implication. I can't see how I could now call the increase unfair, just because no more credit is available.

badfelafel

Just happened to log in to cahoot to withdraw funds... to find out the withdrawal button has gone. Checked my messages, and on 12 Jan it says they'll be withdrawing the withdraw feature in 30 days... tomorrow will be 30 days and the feature will be withdrawn. It still says I have available funds, its just that there doesnt seem to be a way to withdraw them...! Tried phoning them, but of course they're closed.

Typical. I only log in when it's an emergency...!

oscar52

barncourt wrote: »

Bit of an update for you all. Have basically posted off a letter to Cahoot pointing out my dissatisfaction with the proposed changes to my flexible loan, and asking them to provide me with a copy of all relevant data held on me by the bank for me to review under the DPA. Hinted that I believed an "unfair relationship" may now have developed due to the extensive changes made to the account since the original agreement was signed. Sent it Recorded Delivery... Now getting calls from the Cahoot call centre which unfortunately I have missed so far - someone obviously wants to have a chat with me all of a sudden. Still making payments on time to the Flex Loan account. If they call tomorrow will be interesting to hear what they have to say... Bet they try and fob me off. Also, I notice they still haven't updated the web-site as indicated to remove access to the account details, nor stopped the ability to withdraw cash from the Flex Loan, contrary to that stated in their e-mails. I think it was supposed to have stopped end of January. All very strange... If they want to introduce the changes they are proposing, the least they could do would be to reduce the APR to a more competitive rate!

Will provide a further update once I've had a chance to chat to them.

Was this pretty much a SAR request (and telling them you are unhappy) or something else - mybe post it up - minus details so other people can use.

flossiejo

Bump.
Any news or updates?