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

newcook

Ive not hear anything either - even though I have requested an update as to what is going on! the guy dealing with it for me at FOS emailed me back in July (after I had left several messages since April) saying to email him if I needed any update and even if he didnt have one he would let me know they were waiting for an update to give - though so far he has ignored my emails!!

momstheword

Thanks! I'm sending the letter off today!

topsy73

Hi!

Just started reading this thread with interest...unfortunately it would take me all day to read 73 pages...I have however read the first few and the last few....

My question is this...is it still possible to send a letter to Santander regarding the cahoot flexi loan I had and try to get some money back? Or does the last few pages link to Santander getting legal back up to not pay those claims?

The cahoot loan I initially took out has probably been paid three times over throughout the years by the interest added...I eventually changed the account to a fixed rate loan with Santander which means I have an endin sight in 2 years...a refund of money would be great as I am on maternity leave at the moment!

Look forward to your responses.

Sharon

hairyfishman

Hi Topsy73,

The situation is this; back in December 2011, Santander lost an Financial Ombudsman Service (FOS) case regarding Flexible loans, and started paying back the extra interest, as a "goodwill gesture"; in February / March 2012 they stopped doing this, rejecting complaints, upon which people were directed to complain to the FOS; lots of us have done, but the FOS is very slow and seems to be struggling under the weight of complaints, so we're all waiting. Thats it really.

Your first task should be to write to:-

Lord Burns,
Abbey House,
2 Triton Square,
Regent's Place,
London,
NW1 3AN

with your complaint. In a few days, Santander will probably reject your complaint (giving you time to read the remaining 72 pages of this forum...) Then you'll need to escalate your complaint to the FOS, safe in the knowledge that, at the least, Santander will be charged £500 by the FOS for each complaint referred to them.

Best of luck...

SHic

I have just had a message from the FOS saying they would like to discuss my claim. Is there anything in particular that I should be emphasising? Any advice gratefully received.

happy_bunny_2

I would say lending at a low rate then frequently hiking it without explanation. Presumably that happened to you SHic?

Good luck

hairyfishman

SHic,

Mention the fact that they hid this clause in the small print, then waited until there was a credit crunch before springing this on us; when lots of us couldn't get credit elsewhere.

Entrapment / predatory lending anyone?

topsy73

Phew...just finished reading all the posts...have to admit I skimmed thru 50-65....will hold fire at the moment and see how the FOS pans out.....

Thanks to all posters for this tho!

Sharon

mui7087

We too have taken our case to the ombudsman and today received the following mail

The purpose of this email is to provide you with an update to your complaint and also to ask for some further information.
At present, we are waiting for an ombudsman to consider a complaint which is similar in nature to yours. This is to ensure that we are consistent in our findings for complaints of this type. Unfortunately, I do not know exactly how long this will take but I will keep you updated with any news. I apologise for the delays you have experienced so far.

In order for me to fully investigate your complaint, please could you send me the following information:

• <LI class=MsoNormal>A full copy of your credit file. This is to allow us to see what information, if any, Santander or Cahoot recorded on your credit file.
• Please could you confirm if, when your interest rate was increased, you were given the option of taking out a fixed rate loan? We understand this may have been offered to some customers.

I would be grateful if you could please send me this information as soon as possible.

So it seems that ombudsman wants to consider a complaint which is similar in nature to ours, he must be considering loads then! :rotfl:

Will keep y'all posted.

Denza

mui7087 wrote: »

Please could you confirm if, when your interest rate was increased, you were given the option of taking out a fixed rate loan? We understand this may have been offered to some customers.

On this front I believe that an advertisement for an Abbey Fixed Rate Loan may have been included in some December 2006 emails as per below:

http://www.consumeractiongroup.co.uk/forum/showthread.php?50792-Cahoot-doubling-interest-rate

Unfortunately Cahoot have been unable to provide any historic emails for reference.

Of course an 'advertisement' does not constitute an 'offer' as all those Cahoot applicants who were summarily rejected for an Abbey Loan can attest to.

Apparently I was a poor credit risk myself if I remember correctly. With an existing Loan to Cahoot on the books that was subject to ongoing exponential APR increases I can't help but agree!

Santander for their part have subsequently had the good grace to refuse me a Loan switch on two separate occasions (2010 & 2012) for similar reasons; God bless 'em!

Good luck to all.