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

Denza

Just spoke with a helpful chap at the FOS who explained the current situation to me which I understand to be as follows.

Rather than all decisions awaiting an overarching verdict they are still being treated on a case by case basis in chronological order as standard.

However in light of the volume of compliants they have formed a bespoke team (of adjudicators) to deal with the Santy/Cahoot Flexible Loan complaints.

Presumably this is order to collate all previous and current case details for assured consistency and also to establish permanent communication lines with counterparts at Santy, amongst other things.

The number of adjudicators assigned to the team was given as fifteen (15) though I believe this was a ballpark figure so don't quote me/them on that.

My own take is that any delays in processing have come with the creation and preparation of this new team and the routing of all cases in their direction.

Good luck to all.

smudge1984_2

Hi all,
Just spent a good hour reading through this thread and the same thing happened with my husbands flexi loan, we had an interest rate of around 6.9% and this was increased to 16.61%. We have now paid off the loan but think it's unfair how we were treated during this take over by Santander.
I think I am ready to send an email to the CEO's office today with my complaint but wanted to see if someone would mind sending me a copy of their complaint letter to make sure I have added all the bits I need too?
Any help would be much appreciated!!!
Thanks
Smudge1984 x

smudge1984_2

Hi all....Just another quick question....I have just located this old email from santy on 24th Jan 20120....

'Changes to your loan

This communication is to inform you of changes we are making to the management of your flexible loan. cahoot is a trading division of Santander UK plc and as cahoot no longer offers loan products, we are transferring the management of your loan account to Santander. We will confirm the exact date of transfer in the next few weeks.

I'd like to reassure you that your account number, interest rate and payment date will all remain the same.'

It's the last bit that confuses me.....when did the interest rates change on our accounts? Did they happen prior to the actual official take over date which is why they could include such a statement because my husband and I were sure the increases only came following the take over and new statements started....can anyone clarify what happened with regards to the interest rates and the dates they happened for me please?
Many Thanks again everyone :-)

Duncton

If it helps, my interest rate went from 9.4% in December 2006 to 15.9% in August 2007, so most of the increases made before the transfer to Santander.

Lambo07

kenny_straw wrote: »

Lambo you just need to lodge the complaint with the FOS now, I would'nt get too dispondent yet - there is a lot of people in the same boat. The FOS seem to be grouping all the complaints together so likely we will either win or loose together.
Just phone the FOS 0800 023 4567 and they will log the call for you and sent you out the relevant forms. Your complaint to the FOS will just include what you said to Santy and any correspondance they sent you. Good luck!

As discussed, complaint lodged with FOS, very helpful, complaint letter to be issued to me, I need to get it back asap. Will kepp you updated on any developments my end, good luck people, lets win this together.

Annie021063

sent my complaint today, we shall see

rubble2

In case it is of any use to anyone else, I have included some info on finding lost account details etc.

First off I have to say that this was not as easy as it could have been but here are my experiences.

I found this thread yesterday (see my post from then) I tried to find details of my Flexloan account but as it was paid off in 2009 I didn't have any paperwork to reference it.

I rang Santander who transferred me a couple of times until I eventually got put through to a helpful (I thought) chap who advised me that I would either need to write in to the 'Archive Dept' to get account details or take proof of ID to my local Santander branch who would then ring up the loans dept. and get me the details I needed.

I arrived at Santander branch this morning complete with passport to be met with blank stares as "they are not really anything to do with Cahoot" anyway after a bit of faffing about they agreed to fax a copy of my Passport to the loans dept and I could then ring them and get the info I needed.

Get back home and ring number I used yesterday to be told that I had been given wrong info and the only way to get acount details was to write to Santander.

No really happy at this stage so I rang Cahoot on 01908 937222 on the off chance that I may get somewhere. The first guy I spoke to said he would put me through to the loans dept who would have access to the info, he said if they tell me that can not access the info to tell them to look on 'Process Launcher' So I get put through and explain the whole sorry tale again, this guy says that he does not know who the branch would have faxed the ID through to as they have no facility to receive that sort of information. However when I explained that I just need account information, he simply asked for my name, address, and DOB and came straight back with an account number, sort code, start date and end date for the loan.

So, happy days but probably a foretaste of the run around I can expect from now on, having now emailed my complaint to the CEO at Santander

Hope this helps

farmer1971

I wont try and post the full adjudication (update: I have now) but in a nut shell its bad news and the FOS have NOT upheld my complaint :mad:

The only part of my complaint that has been upheld is the credit reference entry submissions that Santander will have to amend but without a compensation award.

I hope all of you receive a fairer outcome. Good luck!

farmer1971

With nothing to loose I thought 'sod it' and post the full adjudication as received. The names have been changed to protect the innocent. Something to get your teeth into over the holiday weekend. Ideas on the next course of action appreciated.

ADJUDICATION


complaint by:
complaint about: Santander UK Plc
complaint reference:
date of adjudication: 22 August 2012


Complaint

Mr and Mrs XXX complain that Cahoot acted unfairly when it increased the interest rate applicable to their flexible loan and withdrew their ability to borrow further money.

Background

In September 2004, Mr and Mrs XXX took out a Cahoot flexible loan at an initial interest rate of 5.65%. The interest rate was variable, with no set loan term. The loan conditions allowed for additional borrowing without the need for further credit checks and for settlement without a repayment charge.

The introductory rate expired in November 2005 and interest increased to 8.20%. From this point until August 2008, the interest rate rose as set out below:

Date
July 2006
September 2006
December 2006
January 2007
September 2007
August 2008

Former Rate
8.20%
8.55%
8.77%
9.05%
14.00%
14.84%

New Rate
8.55%
8.77%
9.05%
14.00%
14.84%
16.10%

In early 2010, Cahoot wrote to Mr and Mrs XXX to tell them that it was withdrawing the additional borrowing facility, giving 30 days’ notice.

Mr and Mrs XXX later complained to Cahoot about the changes made to their loan. In response, Cahoot said that the decision to change the interest was made in accordance with the loan terms and that the XXXs had been given notice of all of the rate changes. Cahoot added that Mr and Mrs XXX could have switched their borrowing to a different product if they had so wished.

My Findings

A lender is generally entitled to decide for itself at what rate it is prepared to lend. If it is changing the rate of interest charged on an existing loan then is must make sure that it does so within the terms of the loan agreement with the consumer and that those terms are, themselves, in keeping with the relevant law.
Here, the flexible loan credit agreement said that the bank would only make changes to the interest rate in certain circumstances.

farmer1971

Following referral of the matter to this service, Cahoot has given a more detailed explanation of the changes and the background to them. Its position is that it made the changes chiefly for two reasons: to maintain the competitiveness of its business and to reflect changes in money market interest rates. Cahoot says that the changes that took place in December 2006 and September 2007 were made to reflect the underlying changes in the Bank of England Base Rate, falling within clause 13.2(b) of the loan conditions. It says that the other changes were made under clause 13.2(a) and (c) in order to maintain competitiveness of its business, which at the time was suffering a loss on this particular product.

Mr and Mrs XXX have seen a redacted copy of Cahoot’s explanation, and have made a number of points:

• They no longer have the flexible borrowing facility they originally took out.

They have a fixed high interest loan and can no longer access it online.

• The bank removed the option to borrow further money, which to them was the most important feature. Refinancing to an alternative fixed rate loan would not have provided this facility.

• Their respective credit files wrongly show that they still have £1,500 available credit.

• The Bank of England Base Rate has fallen in recent years but their loan interest rate has not.

• The credit agreement does not refer to a 12-month introductory interest rate.

• Santander – of which Cahoot is a trading name was not performing badly.

The credit agreement

I have examined a copy of the credit agreement that Mr and Mrs XXX signed when they took out the loan. The agreement does not say that the initial interest rate was an introductory concession for 12 months, although historical information obtained online suggests that the initial rate was offered as a limited deal for a year. That seems to be borne out by the fact that Mr and Mrs XXX did not protest in 2005, when the initial deal came to an end and the interest
rate was significantly increased.

Mr and Mrs XXX have said that they did not receive a copy of the terms and conditions – although, in signing the credit agreement, they made a declaration that they had read and accepted the enclosed conditions booklet. There is no obvious reason why Cahoot would not have included the standard booklet with Mr and Mrs XXX’s paperwork in the normal way, and I consider it more likely than not that they did receive the booklet, but have forgotten that in the
years since then.