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Santander are now refunding interest payments on Cahoot flexible loan's

harry6854 Posts: 17 Forumite
edited 21 February 2012 at 5:18PM in Loans
This is the discussion thread for the following MSE News Story:

Back to original post, and a big thank you to Harry for this (as we've said in the story above).

Santander are now refuding past interest paid on Cahoot flexible loans!!

Myself and a number of others have secured thousands of pounds in refunds - I had my interest recalculated from 2006 to present day at 6% and was given a £8000 refund!! This is not a joke - it would appear someone has had success with a Financial Ombudsman claim and now there are paying out.

I have been contacted by other's who state that this also works for closed account's.

The best way to complain is by contacting the CEO office at the email the ceo's office

Spread the word!!! Any issues private message me


    I have just PM ed you thanks
  • Oliviasmom
    How is this possible? Surely the interest rate u agreed on was signed for? I got a 5k loan
    At 8.9% then 2 years later added another 1k on and the interest was then 26.9% is this similar to your situation?
  • happy_bunny_2
    Oliviasmom wrote: »
    How is this possible? Surely the interest rate u agreed on was signed for? I got a 5k loan
    At 8.9% then 2 years later added another 1k on and the interest was then 26.9% is this similar to your situation?

    It all depends on the exact circumstances and loan type. Was this the flexible loan or was it fixed rate?

    Fixed rate, and there's little you can do as you knew the rate when you signed up to it.

    If its a flexible loan:
    but jacking up the interest by that much on a existing loan is pretty unfair (hence the refunds on complaint). Bit harder when you also spend at the higher rate.

    I had around 12k that got rate rises from 9 to 23%, I spent a little on it but most was already there when they rate jacked me.

    I said it was unfair to lend me 12k at 9% then just keep saying 'we've put up your rate' with no reason given'.

    In the terms and conditions it said the interest rate was variable, but the handling of the account still has to be fair.

  • Oliviasmom
    Thanks for the reply.

    My paperwork clearly states the higher interest rate :( I just don't know what they give me such a low rate on 5k then such a rate on 26.9. That's seems unfair but I agreed it so I'll just have to put it down to experience. 6k all together and I'm paying back almost 10k. For the 5k I was paying £6200 all in. I've been so silly :S
  • harry6854
    I don't know why Santander are refunding - I asked them and they would not tell me. I think its because someone had a successful FOS claim but what the reasons were I don't know and can only speculate but there must be something because they did;nt even try and put up a fight. But in the end who cares why, I got £8k back and I know lots of others who have had similar.
  • Oliviasmom
    Well done. Wish I could get something similar?! :(
  • harry6854
    Just to note - this applies to Cahoot product only. And then only to the Flexible loan product.
  • paul2funky
    Nice one for the tip off! :beer: have just sent a complaint email to the CEO office - will see what happens. My loan has only been £1000 which is still in repayment, but I still reckon I could be due a refund of £100s :j
    Proud to be dealing with my debts!! :j
  • tremendous
    tremendous Posts: 1 Newbie
    edited 7 November 2011 at 7:18PM

    First post! I too had a Cahoot Flexi Loan that changed to Santander.

    How do i go about trying to reclaim unfair interest charges? What do i need to include in my letter of complaint?

  • Both my wife and I have had these, can you PM me some details of what you did please?

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