Cahoots = Loan Sharks! (merged)

PurpleDuck

it happened to my other half when we had a loan with them a couple of years ago so we swopped lenders asap. A year and a half in Cahoot raised the rate by 6% and would not give us a decent explantion as to why! We were baffled and didn't know about the FSA back then so just took out business elsewhere.

john348809

I one of the many Cahoot flexible loan customers hit by the 9% rate rise.

I am so angry by this and feel that if all customers put up a fight we could get something back, the flexible loan was once recommended by this site so there must be many who read this site who are effected.

I know some of use could rush out and get new loans but why should we, this will damage are credit ratings and some will be unable to get further credit. I am taking the following steps and suggest people join me.

1) I intend to submit a full complaint to the FSA on the following basis;
not being given adequate notice about changes to a contract.
unexpected or excessive charges

I have also tendered that "Forcing customers to switch to an Abbey loan represents an unfair penalty on the customer as their credit rating will take the unavoidable hit of another credit reference search against it, adversely affecting their credit rating."


2) I intend to wait until I have paid the new loan charges, then submit a claim through moneyclaim online to get the extra interest back through the courts.
I intend to base my claim on the above and also along similar lines to that of the bank charge claims and hopefully force Cahoot to justify the rate rise in court.

If it fails so what i only lose £30 but it will cost Cahoot more to defend the claim and make me feel better!

If I win I can use this through the FSA to force action and open the flood gates for others.

I hope others will join me

lynzpower

jon

very interesting indeed, Im sure we will follow you too

Ive long been concerned by this as my OH started having his rates put up about 6 months ago.

Can I ask under what act are you taking action. Clearly its important for us to have the legals in place.

clarab_3

Cheers John - I believe it was me that wrote that above;)

Yes, I have already complained back and forward with cahoot and am now in the midddle of my complaint with the financial ombudsman's scheme as recommended by the FSA.

a copy of the complaint form is available from their website. I;d urge everyone to file one.

seb1982

Hi, i was hit by an interest rise at cahoot about 3 months ago, I applied for the Man Utd credit card which is run by MBNA, i was able to get a £6,000 limit and transfer all of my loan onto it at 12 months 0% interest and 2% balance transfer fee and I will be able to pay this off in the 12 months.

lester

I too have been informed from Cahoots of the rate hikes.
It seems that they are in trouble themselves,so they pass it on to their customers who have been keeping them in business.
I am not in any position to get an Abbey loan nor to tranfer any big amount of my loan to other cards for at least 6 months.

I am a self employed Fine Artist, on the look out for other employment outlets
and that is like turning smoke into a base metal.

h4nym

roswell wrote:

get a large limit credit card with cash back that would suit you better or a credit card thats 0% on purchases.

I've got two credit cards - both with limits well in excess of 10k. One is used for business expenses, the other for personal expenditure. Both are on direct debit for the full statement balance each month. So I'm not a borrower on credit cards.

The Cahoot flexible loan served my needs well. I'm not really up for rate tarting / getting another card every twenty minutes etc etc. If I play the card game quietly, I don't pay anything for the convenience I enjoy and I don't have to keep scouring the offers either.

Cash drawn on a card is expensive, 0% on purchases are timebombed to the point of being irrelevant. What was good about the Cahoot Flexi was that there was always a low-cost reserve on tap. I had (still have) a 20,000 credit limit with them. At 9%, that was a maximum of £150 in interest. Now it's £250 and I have to think twice. That's why I'm looking for an alternative. I'm happy to pay my way in life. I just don't want to be ripped off - like those !!!!!! at Cahoot / Abbey / Banco Santander are trying to.

H