Is this allowed??

CLAPTON

miss_missy wrote: »

hi
im probably going to be hated for what im about to say but have to say it as im sick of hearing people complain about the cahoot flexible loan
when i went to cahoot to get my loan i looked at the flexible loan as i thought the idea was great i could spend, pay off some then spend some more, however as i read about it the thing that put me off was the fact that the apr was not fixed, and therefore it was more than likely to rise over the years
so i decided on the fixed rate loan and got 5.8% apr and have to say i have had no complaints with them i got exactly what i had signed upto

beccak you say if you had know the loan would be like this you would never have taken it out so did you not read about the loan? they didnt hide the fact the the apr was varible

sorry if i have offended anyone but people constant complain about cahoot because they took out a loan that they wanted because of the flexibility of it but dont like it when the company do something that was clearly stated was a possibility of this loan

In fact Cahoot were the first (non subprime) high street loan company that has followed this path. Up to Cahoot, 'variable interest rates ' broadly changed with the bank base rate.. a bit like mortgages.

So yes it was in the T&Cs but then lots of financial issues are taken on trust.

The is e.g. nothing to stop any variable rate mortage company from changing their rates to say 25%... but custom and practice makes this unlikely
there is nothing to stop any mortgage from being recalled at any time but most of us just trust that the bank won't do that maybe because the out cry that would be caused.; but it's in the small print somewhere.


So in hindsight it was an unwise decision but not a easily predictable one.

miss_missy

CLAPTON wrote: »

In fact Cahoot were the first (non subprime) high street loan company that has followed this path. Up to Cahoot, 'variable interest rates ' broadly changed with the bank base rate.. a bit like mortgages.

So yes it was in the T&Cs but then lots of financial issues are taken on trust.

The is e.g. nothing to stop any variable rate mortage company from changing their rates to say 25%... but custom and practice makes this unlikely
there is nothing to stop any mortgage from being recalled at any time but most of us just trust that the bank won't do that maybe because the out cry that would be caused.; but it's in the small print somewhere.


So in hindsight it was an unwise decision but not a easily predictable one.

yes i understand what your saying but feel its unfair to use a mortgage which is a secured debt as a comparison with an unsecured loan,
the bold sentence above is true but on both sides with unsecured debts the banks trust us to pay back what we loan from them but often some people dont the op has had this loan for 8 yrs and has still not paid it back she/he has enjoyed the money but admits can not afford to pay it all off so the bank has not said we want all our money back instead they have increased their aprs which gives op 2 options pay back the money if your unhappy and they earn no more from you or carry on paying it slowly.

i just feel that everyone coming on and saying can cahoot do this? is it allowed? need to take responsibility and realise yes they can, you wanted flexibility you have to pay for it, did you not read what you were signing up for? did you not understand? it might not be fair but to some degree thats life.

beccak_2

Thankyou Clapton I am happy that someone understands what I was asking. I am not moaning, I do not dispute the fact that I have had the money and that I owe this to the lender, I was just disappointed that Cahoot have hiked the APR up so much, seeing as never missed any payments etc.
Missy, you should see if Cahoot has any sales jobs going.

DGJsaver

miss_missy wrote: »

so i decided on the fixed rate loan and got 5.8% apr

They were the good times !

confused90

Your flexible (variable) interest rate obviously wasn't set to track the bank of england base rate was it if it was you'd still be laughing.

But thats the problem with loans like this you agree that the lender can increase the loan based on their own in house criteria.

You could try complaining to the ombudsman that you feel unfairly treated to have had your interest rate raised so dramatically in a time where interest are rates generally lower than they have been in recent years on most variable interest deals but it probably wouldn't be upheld as your agreement would have clearly stated that cahoot could do this and the possibility of interest rate hikes in favour of the lender is ofset in the contract by the flexibility to extend your borrowing.

therefore the best option is to look for a better fixed rate loan to pay this one off

miss_missy

beccak wrote: »

Thankyou Clapton I am happy that someone understands what I was asking. I am not moaning, I do not dispute the fact that I have had the money and that I owe this to the lender, I was just disappointed that Cahoot have hiked the APR up so much, seeing as never missed any payments etc.
Missy, you should see if Cahoot has any sales jobs going.

you may never missed any payments but just like credit cards they have to think about the risk you pose, i dont know if you have other debts but if you do they will have look at that, the fact you had reached your limit, had the loan for 8 years and not paid it back so your alot more risky to them possibly then when you first took out the loan just like cc they will have to reassess the risk you pose.

dont really want a sales job but thanks for the suggestion

DGJsaver they certainly were good times

beccak_2

No other debts, also loan has been paid off many times, then credit taken from it over the 8 years. Not all in one go, but I have now reached limit. Istill think an increase from 7.4 to 21% is unjust.

Missy, ambassador would be better word than sales.

beccak_2

ILW wrote: »

I think it is funny that when the credit is available, the need to spend seems to arise.

also not 'funny' when maybe to borrow for a short space of time is you're only means of living.

Happytogetdebtfree

Hi becca I know it seems unjust about the cahoots loan hope you can get it paid off in quick time. all the best with the journey to debts freedomness

Infidel

CHR15 wrote: »

No such thing as free money.

This loan obviously gave you some freedom and flexibility in the past, moreso than you would have had from any "standard" type of loan.

This is the payback time, you had the good times, now the bad times have arrived.

Yeah, think of it like this; you were previously dating, and now you've just gone and got married. :eek: