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

Cell

There is mention in the decision that the FSA might be an appropriate avenue for certain elements.

"I am not in a position to investigate the structural profitability of Cahoot and the wider Santander group, or to assess how the specific interest rate changes made on Mr and Mrs XXX’s account were assessed in relation to the overall profitability of the flexible loan product and how that related to the prudent running of the business.
That is an assessment more suitable for the Financial Services Authority, which provides prudential regulation of Cahoot. Given that, I would also propose that the ombudsman service notify the Financial Services Authority of Mr and Mrs XXX’s complaint and of the arguments that Cahoot has put forward for its variation of the interest rates on the flexible loan product."

This is a decision I mentioned earlier in the thread - it's to do with fairness of contract and the balance of power between the parties.

The one thing Cahoot will have known is that many of their customers were not in a position to get a loan from elsewhere, and there is anecdotal evidence that Santander turned down loan applications from people who tried to 'convert' from the Flexi-loan to a fixed rate loan with them.

http://www.fsa.gov.uk/doing/regulated/uct

JayDawg_2

Hi guys another newbie here, I originally opened a Cahoot flexi loan back in 2003 and from what I can tell the original interest rate was 6.5%. I closed the account in 2007 because I remember at the time thinking the interest rates were ridiculously high! Having read the forum it would appear that the interest rate hike was against the rules and people are now trying to get some money back which I am very interested in! I have my original account number and a copy of the original terms but I am now stuck as to what to do next. I do not know the total amount I borrowed and I do not know what the final interest rate was and when the rates increased? I see that people have written to the CEO of Santander to complain but I am not sure what info I need or what to say? Any assistance would be greatly appreciated.

Cell

farmer1971 wrote: »

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.

By the way, and out of interest, where have your other posts on this thread gone?

Anything prior to the first adjudication post appears to have been deleted.

MoneySaving Newbie

Join Date: Feb 2012
Posts: 7
Thanked 26 Times in 19 Posts

Certainly you seem to have been thanked in more posts than you've actually made?

Just seems strange:)

Cell

happy_bunny wrote: »

I got £5k+ back but had to go via the FOS.

My wife just got a letter as well from the FOS, as for some reason Santander just rejected her complaint (probably as she's married to me ) and will be getting back quite a bit of cash, amount TBD but will pay off most of the outstanding balance.

Just to remind us where we have come from. Right back to page 1 of the thread.

FOS letter received from happy bunny, apparently?

farmer1971

Cell wrote: »

By the way, and out of interest, where have your other posts on this thread gone?

Anything prior to the first adjudication post appears to have been deleted.

MoneySaving Newbie

Join Date: Feb 2012
Posts: 7
Thanked 26 Times in 19 Posts

Certainly you seem to have been thanked in more posts than you've actually made?

Just seems strange:)

Unfortunately I was fed up of all the speculative and assuming posts made by a minority of posters contributing to this thread. I only deal in facts and felt the speculative posts gave unfair and false hope to some complainants. I removed my posts in a moment of frustration :mad:

Cell

Fair enough, thanks for the explanation:). If there's one thing that frustrates me it's people asking 'how do I complain?' when there are probably 100 answers to that very point in the thread, so I can understand your moment of madness!

I'm still intrigued by the earlier references to an FOS decision I quoted from page 1 of the thread. Is anyone still alive on here who actually got either/or both of

a) Santander's offers
b) Any FOS positive decision

????

farmer1971

Cell wrote: »

There is mention in the decision that the FSA might be an appropriate avenue for certain elements.

"I am not in a position to investigate the structural profitability of Cahoot and the wider Santander group, or to assess how the specific interest rate changes made on Mr and Mrs XXX’s account were assessed in relation to the overall profitability of the flexible loan product and how that related to the prudent running of the business.
That is an assessment more suitable for the Financial Services Authority, which provides prudential regulation of Cahoot. Given that, I would also propose that the ombudsman service notify the Financial Services Authority of Mr and Mrs XXX’s complaint and of the arguments that Cahoot has put forward for its variation of the interest rates on the flexible loan product."

This is a decision I mentioned earlier in the thread - it's to do with fairness of contract and the balance of power between the parties.

The one thing Cahoot will have known is that many of their customers were not in a position to get a loan from elsewhere, and there is anecdotal evidence that Santander turned down loan applications from people who tried to 'convert' from the Flexi-loan to a fixed rate loan with them.

I completed the check-list following the link provided (thanks cell) and it came up with this:



Unfair Contract Terms Interactive Checklist


It seems your concerns are unlikely to fall within the FSA’s powers under the Regulations.

The FSA can only consider referrals under the Regulations about standard-form consumer contracts issued by FSA authorised firms, or appointed representatives of such firms, that relate to contracts for regulated activities. These include contracts for:

- mortgages and selling mortgages;
- insurance and selling insurance;
- bank, building society and credit union savings accounts;
- pensions;
- investments (including spreadbetting and contracts for difference);
- long-term savings.

The Office of Fair Trading (“OFT”) handles referrals about contracts relating to:

- credit cards;
- personal loans;
- hire purchase;
- other credit-related products.

Can't think why the FOS would refer it to the FSA and not the OFT.

Cell

Hmmm, So who is responsible for complaints on the fairness of flexible loan contracts?

The FOS mention the FSA, and yet apparently that may not be appropriate.

The product was essentially a credit card format without a physical credit card. And it didn't have S75 protection.

Was it regulated, and if so by who?

Has it fallen between the cracks?

farmer1971

Well I think the FOS have given Santander the green light to increase the APR even further now! I will be settling my balance in full next month.

On a personal note I would like to thank the majority of contributors to this thread for all the information and advice in assisting with my complaint process. I will of course be rejecting the adjudicators findings and request an ombudsman to review my case.

One of the good things to come out of all this is I managed to claim the PPI back from the Cahoot account that I had forgot about.

Keep your chins up!

Denza

happy_bunny on this thread and king123 over on Consumer Action Forum are nailed on FOS winners if their posts are to be believed (which I certainly do).

http://www.consumeractiongroup.co.uk/forum/showthread.php?173744-Cahoot-Flexi-Loan

Unless I get something in writing from the FOS telling me that they got those cases wrong then we are still in the game so to speak.

Good luck to all.