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

Denza

Cell wrote: »

I am reasonably sure that the 20% as quoted was the annual rate EAR), which translated to 21.94% APR. While this in itself is extremely misleading on their part I would check this out before telling the FOS that it was an interest rate 'increase'.

I could be wrong, but better to suggest it now (as I did much earlier in the thread) than to let you waste your time down a blind alley.

The EAR will be higher than APR not vice versa however it would not suprise me to learn that systemic mismanagement and chronic administrative failures are at the heart of the discrepancy as you have suggested.

Fortunately I have a nice letter from the good people Santander confirming and indeed apologising for the fact that my APR is in fact 21.94% as opposed to the 20% as indicated on my statements.

However I've taken the liberty of returning their £45 cheque.

Happy to let the FOS determine what happens next with respect to above!

Todge_2

Diamond_Gaz wrote: »

[FONT=&quot]Hello everyone, update time:[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Sent my complaint off to both the CEO and general complaints email address on 16th Feb, and within 2 days received a letter stating that they would investigate my complaint (no timescale was given). Since then, I have heard nothing, and haven’t chased them as I was interested to see if they would respond within 8 weeks. Got a rejection letter from them today:mad:, so next step will be a complaint to the FOS, as I can’t see how they refund / compensate some people, and reject others. The letter states:[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Dear Mr xxxx[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Thank you for your e-mail dated [/FONT][FONT=&quot]15 [/FONT][FONT=&quot]February 2012 addressed to Ms Ana Botin. Your concerns have been passed to me to review.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]You have complained about the rate rises you experienced on your Cahoot flexi loan, and in your view these rate rises were unfair. I have looked into your complaint in order to ensure that we acted in the right way in respect of your loan with us.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I will set out briefly below why we believe the rate rises were fair and that we acted reasonably at all times. If, after reviewing these reasons, you disagree with me, you can refer your complaint to the Financial Ombudsman Service. I have enclosed a leaflet that explains how you do this. If you wish to complain you should contact FOS within six months of the date of this letter.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]The Cahoot loan you chose was a flexi-loan. It had a variable rate of interest. It offered you the flexibility to draw down more funds without the need for a further credit search. It also gave you the opportunity to repay the full balance at any time, without penalty.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]We carry out regular reviews of all our products to ensure that the interest rates charged on our products are appropriate. This is important to ensure we run our business prudently. Regrettably, at the time we felt it necessary to increase the interest rates on the Cahoot flexi-loan to ensure the product, with the flexibility it offered to customers, could continue to be offered.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]While we appreciate your concern that these rate rises were significant, the interest rate ultimately charged on your Cahoot loan was in line with other flexible variable rate loans that were available in the market at that time.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I am satisfied that these interest rate rises were made in accordance with the Clause 13 of the terms and conditions of your agreement with Cahoot, a copy of which is included. In reviewing your complaint, I can see that you were given advance notice of these rate rises, both via your web based Cahoot secure messaging facility and in writing via email to your nominated account. I believe we communicated appropriately and entirely in line with the attached terms and conditions of the loan.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]At the same time that we did this, we also advised that it may be possible for you to move on to another product with Santander (Abbey at the time) which may have offered better rates and this could have been done without penalty. Some people did choose to accept this offer, perhaps because they were willing to lose the flexibility provided by the Cahoot flexi-loan for a lower interest rate.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]With this in mind, we believe that in respect of your loan with us that these rate rises were fair and that we acted reasonably at all times. I am therefore unable to uphold[/FONT]
[FONT=&quot]your complaint.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Yours sincerely[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]XYZXYZ XYZX[/FONT]
[FONT=&quot]Manager[/FONT]
[FONT=&quot]Enc. Financial Ombudsman Service Booklet[/FONT]
[FONT=&quot]Terms and Conditions[/FONT][FONT=&quot][/FONT]

Exactly the same knock back letter I have had about 2 weeks ago now, I have responded in writing pointing out each paragraph were I feel they have not noted my comments in my very first letter to them, and I mentioned how the loan now is not flexible, various others reason as well, I try and get a copy up, tonight

Todge_2

Spentup12 wrote: »

I'm a newbie and not too sure I've posted correctly here!

I have today received the standard rejection letter from Santander. Am I missing something here as they say "I was advised it may be possible to move onto another product with Santander that may have offered better rates and some people took this offer as they were willing to lose the flexibility provided by Cahoot" . I was never offered anything else though I call them to ask if I could and was told no!

Does anyone know if the key principle the FOS may be looking at is the withdrawal of the flexibilty and imposition of a higher rate being unfair. If this had been a credit card I see that I would have had the option to freeze the account at existing rates in response to rate jacking.

Finally, is it worth me going back to Santander or should I go straight to FOS?

many thanks

I had the same part in my letter, I also was never offered an alternative, but I did ring them and ask if I could get the interest rate lowered and was told no, but I might be able to take anew loan to pay off the old loan, so I went through the application, but was told I would need to borrow an extra £1000, so I still decided it would be better than paying high interest rates and applied but was rejected, (twice may I add), funny why they rejected me when I have never faulted on my loan

Todge_2

Jasmine12 wrote: »

Just had standard rejection letter, my letter didn't have the paragraph that others seem to have about offering alternative options

"At the same time that we did this, we also advised that it may be possible for you to move on to another product with Santander (Abbey at the time) which may have offered better rates and this could have been done without penalty. Some people did choose to accept this offer, perhaps because they were willing to lose the flexibility provided by the Cahoot flexi-loan for a lower interest rate."

No penalty, that's a laugh I was told I would need to borrow an extra £1000, to surcure the loan but was still rejected

Denza

farmer1971 wrote: »

Would I be bound by the original T&C's or the updated ones? Something to think about.

Different versions of the T&Cs feature the interest rate rises in different sections; I've found it in section 12, 13 and 15 to date.

The content however was the same.

By the same I of course mean no basis for exponential interest rate rises!

UK_AEH

Hi,

Just recieved my 'get lost' letter in response to my email sent on 07 Jan.

Should I write to the FOS now, or send a SAR to Santy first and calculate what I think I am owed before writing to the FOS?

Thanks....

happy_bunny_2

UK_AEH wrote: »

Hi,

Just recieved my 'get lost' letter in response to my email sent on 07 Jan.

Should I write to the FOS now, or send a SAR to Santy first and calculate what I think I am owed before writing to the FOS?

Thanks....

Complain to the FOS now, its theirs and Santys job to do the Math as they say...

InsertWittyName

Received my second cheque yesterday, as they've recalculated my original settlement and realised they made a mistake (wasn't for very much).

I got the letter 6 weeks ago which should have had the cheque in but didn't!

Only took 3 phone calls over the 6 week period since I received the letter to actually get the cheque...

Finally I am free from dealing with all of S@ntander's incompetences - never again shall they darken my doorstep!

londonfraggle

Hi there - I have just stumbled across this thread - had no idea about this!

I too have a Cahoot Flexi Loan but it's currently under a DMP. I am not sure if I want to go rocking the boat (as I have a number of other accounts included in the DMP which are now with Santander - and I'm keen not to give them any reason to stop accepting the DMP payments).

I wonder if anyone on here has any experience with anything like this? i.e. is it worth still going down this route or should I hang tough and wait until I'm closer to having paid the Flexi Loan off (about a year away).

any advice gratefully received - thank you very much.
Fraggle x

neilkeys

i just got my knock back letter today saying that its in line with T&C in clause 13 blah blah blah, can anyone help me with what is the next step for me now?

Thanks