Cahoots = Loan Sharks! (merged)

Xbigman

There are loads of life of balance or 0% cards (although you will need several in a row) that you can move this loan to. Post your question on the credit card forum for more expert CC tarting advice.
Regards


X

dpc036

it was more to see which cards i can use to transfer the loan, not all balance transfer cards will let you transfer loans.

phildamb

Well I also received the same email and have tried contacting Abby to move the loan but have been rejected for a new application, so myself personally have been left high and dry by a company I have banked with since it was founded.

Camouflage

I think it's Sh-Abbey new Spanish owners intent to get rid of Cahoot, as it's not profitable enough, as most people are just gonna do what I did, close the rip off account and move it to although service. Good news for Zopa I guess. I bet that Cahoot rate will increase again and again in the new year to get rid of any mugs who haven't switched.

clarab_3

Camouflage wrote:

I think it's Sh-Abbey new Spanish owners intent to get rid of Cahoot, as it's not profitable enough, as most people are just gonna do what I did, close the rip off account and move it to although service. Good news for Zopa I guess. I bet that Cahoot rate will increase again and again in the new year to get rid of any mugs who haven't switched.

what about the "mugs" that are ill at the moment and so cant afford new credit?

h4nym

For some of us, there is a value in a flexible loan - let me offer my scenario:

I (fortunately) earn a very good monthly. If I decide to buy a bigger ticket item, rather than liquidate savings / investments (eg ISAs that might have tax implications) or use an expensive overdraft or an even more expensive Credit Card, I use my Cahoot flexible loan to pour money into my current account and then pay it back over the course of the next month to three. That way I don't pay too much interest and leave all my savings / investments intact.

We're not all mugs, which is why so many of us are so infuriated! A fixed loan is effectively a one-off and I'd have to reapply each time I wanted this facility.

H

Astaroth

Have to say that as far as I have seen flexible loans are more or less just overdrafts that traditionally had lower interest rates - looking across the board of flexible loans all of them are putting their rates up.

h4nym - I have often heard people say similar to what you are but I am curious as to what saving/ investment you are using etc to be able to routinely get more than 6.9% (cahoots rate before the hike) after tax considerations? I have now finished paying all my debts off (other than my student loan which doesnt count) and so have £1000-1500 a month to invest

h4nym

Hi Astaroth

Oh that it were that simple, but essentially it's to do with ISA limits where the amount you can pay in is limited. If you take money out, then it's not a problem, but it's putting it back that's the problem! It's all fiendishly complicated - welcome to Gordon Brown's tinkering Treasury - but that's the nub of it.

Example: I bought a motorbike recently - £9,000. Rather than liquidate ISAs, it was cheaper to borrow it from my Cahoot flexi, pay the £80-odd interest while I paid it off over 2 months and keep my full ISA earning the full return.

In terms of where I'd put my spare 1000-1500? Get £5000 into a regular boring savings account that you can get at quickly - for example the highest-paying instant access account at your bank. I know there's better rates available then most current account-offering banks, but this ensures that you can get same day access to it through your current account.

With that kind of cushion, I'd then look at longer-term ISAs. I'm primarily in corporate bonds, but it's entirely what floats your boat - I'm no financial adviser! Thereafter, for me it's property - as much as you can afford. There's no other investment that delivers the opportunity for other people (tenants) to buy your investment for you. That works for me!

hth

H

roswell

h4nym,

if your salary is that good and your credit rating you shoudl be able to get a large limit credit card with cash back that would suit you better or a credit card thats 0% on p[urchases.

clarab_3

Morning folks -

latest from FSA and Cahoot. Cahoot are a member of the Financial ombudsmen Service. If you have already complained to cahoot and not recieved a stisfactory answer, the FSA suggest you go here

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

next.

Incidentally, this in from cahoot this morning:

"Thank you for contacting cahoot in Coventry.

I can advise that it is a business decision that we have decided to increase the rates of our loans due to the increase in the cost of lending.

We have to notify you within 30 days of the change, this can be 30 days before or after the change takes place.

This is outlined in the terms and conditions.

13.4 We will notify you in writing within 30 days of any change in interest rates. We will give you at least 30 days prior personal notice of any change in our day to day charges.
"