Santander rip off with 20% loan started at 7 % with cahoot transferred

FOOTYCOACH

Dear British Lenders,

I took a loan out with Cahoot specific to buy a £13,000 car and after 5 years I have still got over £8,000 to pay off as I have been ripped off by Cahoot and Santander as they have raised the interest from 7% to 20%. Anybody out in the market please DONOT take a loan out with Santander. My car has 60,000 miles on it and still going to take me another 5 years to pay off due to the high interest hike. These Banks should be made to pay compensation to customers such as us hard working people. Please donot let the Banks get away with this as the Bank knew it was for a car loan only and it is taking me between 10-20 years to pay off not 5 years. I have been to the Financial Ombudsmen so I need as many people who are getting ripped off to send me there details so I can put pressure on someone to do something about it. In 2008 to 2010 the Bank didnot reduce the rate when the banks reduced all the rates but they can just increase the rate to what they like. There is no one monitoring or controlling them and it seems as if they can do what the hell they like. This needs to be brought to the Nations attention that foreigh banks are ripping us off in the UK and needs to stop as I think it is criminal as it is putting us in financial problem and the Government is doing nothing about it.
Anyone with the same problem please email contact me asap Regards Glenn

opinions4u

Hi Glenn.

Did you sign a variable rate agreement with them by any chance?

If so, my guess is that they varied it.

(Have you considered moving the loan to another provider at a fixed rate?)

FOOTYCOACH

opinions4u wrote: »

Hi Glenn.

Did you sign a variable rate agreement with them by any chance?

If so, my guess is that they varied it.

(Have you considered moving the loan to another provider at a fixed rate?)

My answer back is that yes it was variable but no one is monitoring the level of interest, do you think 20% is acceptable rate and no one can tell me why it has gone to 20% and from 2008-2010 the rate should of reduced but stayed at the same rate because financial authorities are letting them get away with murder and when it was transferred they knew it was a car loan so why did they not put me at a rate of 7% which Santander are advertising at because they are ripping the public off such as me. It is a disgrace that no one is monitoring the banks and donot care a less about people.

opinions4u

There are a number of reasons why your rate has risen.

1. You signed an agreement allowing them to.

2. The Credit Crunch has increased the cost of the money that they raise to lend on. Their funders have increased the cost and they have kindly passed that on to you.

3. The recession and subsequent financial fall out has led to a massive increase in people not paying their loans. The only way to recoup these losses is to increase the costs to other borroweRs. Like you.

There are a range of laws and regulations covering lending. You could try going to court to challenge the fairness of them varying the rate if you like. But it would be a waste of time and effort because you'd lose.

Take a look at the APR on sites like www.wonga.com and then ask who is really being ripped off. (Don't apply for credit with them though).

I have been to the Financial Ombudsmen

And they said what?

foreigh banks are ripping us off in the UK and needs to stop as I think it is criminal as it is putting us in financial problem and the Government is doing nothing about it.

I think you'll find numerous customers of banks part-owned by HM Government who have had similar experiences with their credit card rates.

(While I am sympathetic, and understand your rant, it isn't going to achieve anything. Move your loan elsewhere if you can).

Fiddlestick

FOOTYCOACH wrote: »

My answer back is that yes it was variable but no one is monitoring the level of interest

Why should anyone monitor it?

You signed a variable rate agreement and the bank varied it.

why did they not put me at a rate of 7% which Santander are advertising at

It's terrible that a bank wants to make a profit on the money they lend out, isn't it?

How shocking of them to act in their own financial interest.

The onus is on YOU to ensure that YOU get the financial product that is best suited to your own circumstances.

If you wanted a fixed rate of 7% then you should have signed a fixed rate loan agreement, not a variable rate one.

I'm not sure what you expect the FOS to be able to do here.

Apples2

FOOTYCOACH wrote: »

they knew it was a car loan so why did they not put me at a rate of 7% which Santander are advertising at

Why didn't you apply for the 7% fxed rate in the first place?

You are getting a bit of a pasting on here but you are new so are not aware of the previous history on MSE.

Cahoot have had many many posts on here with this (I agree) rip off variable rate.
I'm not aware of anyone who has had any success in fighting it though. This issue has sent many people over the edge where repayments have rocketed so high, they simply are unable to continue payments.

The Term Variable, sounds great, they tell you the rate could go down. The reality is that it would never go down.
Even if it does, only by a meagre amount only to shoot back up again in subsequent Months.

There was nowhere in the agreement which stipulated it would track the base rate (which is where most people are most annoyed).
The Base Rates plummeted wilst these lenders increased their variable rates.

The only feasible way out is to get a Settlement Figure out of them, then source a loan (on a fixed rate) to clear the outstanding debt.

You recognise this could take many years to pay off, nothing can stop them increasing the rates again so it may take longer than you have imagined.

Focus your efforts on getting shot of it and don't go near Cahoot (Santander) ever again.

FOOTYCOACH

I took out a flexible loan which cahoot were giving the best rate in the market at the time around 5.5% i then sold my car then took another one out with them as it worked well. The reason I am mad is that the FSA are allowing Banks to raise the interest to what they like and no one is monitoring them. If I was told at the time of selling the product that the interest rate would go to that level then I would of taken a fixed rate. The FSA should be not allowing the Banks to make fat big profits out of people such as myself and millions of others. The rate should be capped at a level. I have not received any information from anyone why it went to 20% and why it has not been reduced in 2008 when the rates were all cut. Santander do not give a monkeys about customers at all watch watch dog about Santander online

Yes i can transfer the loan but I should of not been misold in the first place costing me thousands.

Apples2

You haven't been mis-sold the loan.

It was just a poor loan to choose, I know it sounded great at 5.5% and if it had gone down to 0.5% this post wouldn't be here.
The Banks aren't here for our good, they are a business out to make as much profit as possible.

The VARIABLE word in the title said it could go wherever it wanted, up, down or stay the same.

Search out Cahoot loans on here, some people are quite advanced in the challenge.

ILW

Oh, so that's what variable means.

Apples2

Ah !!!!!!, I'll search one out for you...

Here you go, have a read of this baby.

https://forums.moneysavingexpert.com/discussion/320404

Only 136 replies.

Or this one a bit less of a read.

https://forums.moneysavingexpert.com/discussion/1025093

_Andy_

Another "oooh the lender is so unfair for varying a variable rate credit rate agreement" thread. Superb.