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

happy_bunny_2

saverang wrote: »

HI
thanks for replying
It was basically a complaint about the high interest rate rise and how it was unfair that due to the credit crunch we were unable to transfer it elswhere etc
They basically sent us a copy of the T&Cs we signed withe part highlited 'we reserve the right to change the interest rate at any time' and said we could have closed the account if we werent happy with it.
The details of the loan are basically the same as everyone else, taken out circa 04 I think at about 6% balance still remaining at 20%
The account is in joint names and my hubby dealt with all the correspondence so I was going to do it this time.
It seems very unfair that they are refunding people in exactly the same circumstances.

I would complain again in your name, using a similar letter to someone else.

I'll PM you the letter I used.

finley909

David1974 wrote: »

Just called Santander, and the balance is showing in my account, but for interest purposes it is not technically applied to the account balance. Therefore you will get charged the remaining interest, at your current rate on the full 'pre-refund' balance until your payments bring the account balance to within tollerance to close the account. A bit sly this, but i'd recommend refinancing using a BT or overpaying as much as you can to clear the remaining balance.

Anyone else notice this?

Has anybody checked with Santander re this? I'm thinking a lot of customers with existing loans might get a bit of an unpleasant surprise when they see their next loan statement expecting a reduced balance!

oscar52

I just had my letter, and like some others, have been refunded (on a goodwill basis of course) just shy of £3K.

I now, too understand some of the above posts. My letetr states that "...Normal terms and conditions apply from this point which means the loan will continue to run at its current rate and is subject to further changes..."

So assume the balance has reduced, and the remainder now will still be charged at circa 20%.

Suppose the response is very much like credit card charges - they will refund up to date but you are still liable in the future.

David1974

oscar52 wrote: »

I just had my letter, and like some others, have been refunded (on a goodwill basis of course) just shy of £3K.

I now, too understand some of the above posts. My letetr states that "...Normal terms and conditions apply from this point which means the loan will continue to run at its current rate and is subject to further changes..."

So assume the balance has reduced, and the remainder now will still be charged at circa 20%.

Suppose the response is very much like credit card charges - they will refund up to date but you are still liable in the future.

Yep, normal terms and conditions will apply. Glad to be settling my account in full today :j. Funny how a month ago i had a £7,800 debt and today it has gone. Glad to get rid of this horrible horrible loan. Was so good in the beginning but it turned into a inflexible nightmare! Bye Bye Cahoot! I will NOT miss you! :rotfl:

oscar52

Leaves me with just a bout £1K - so continue payments and it should move pretty quick

finley909

oscar52 wrote: »

I just had my letter, and like some others, have been refunded (on a goodwill basis of course) just shy of £3K.

I now, too understand some of the above posts. My letetr states that "...Normal terms and conditions apply from this point which means the loan will continue to run at its current rate and is subject to further changes..."

So assume the balance has reduced, and the remainder now will still be charged at circa 20%.

Suppose the response is very much like credit card charges - they will refund up to date but you are still liable in the future.

Do you think that this means the balance is reduced and the remaining balance is subject to he current interest rate, or will we still get charged the interest rate on the balance as it was before the refund?

There seems to be mixed opinions about this.

hr9hr9

Thank you OP for this wonderful thread

I chanced upon this somehow this morning, and I have written letters for my own and my husbands Cahoot Flexi Loan accounts.

My husbands account was opened in 2001 and mine in 2002, so I am hoping that we can get something back as they seem to be never ending!!.

Eagerly awaiting their response. :eek:

Is it against MSE rules to post a template letter as I personally struggled with mine.

Thank you again
Helen

EKAndrew

David1974 wrote: »

Yep, normal terms and conditions will apply. Glad to be settling my account in full today :j. Funny how a month ago i had a £7,800 debt and today it has gone. Glad to get rid of this horrible horrible loan. Was so good in the beginning but it turned into a inflexible nightmare! Bye Bye Cahoot! I will NOT miss you! :rotfl:

Hi David - congrats on getting rid of that kind of debt!! (when you say gone - do you mean, their refund cleared this for you? or have you paid some extra yourself?)

I'm with you, in the beginning, it was great but turned into a nightmare. Do you mind me asking your initial loan amount? Mine was for 10k in 2001 - so i'm hopeful of a nice refund! My email has been sent, they asked for further info, and that has now been provided too, so just waiting on a response.

Fingers crossed - i just have no idea what kind of figure i will be offered

Go MSE'ers!!

oscar52

finley909 wrote: »

Do you think that this means the balance is reduced and the remaining balance is subject to he current interest rate, or will we still get charged the interest rate on the balance as it was before the refund?

There seems to be mixed opinions about this.

Thats my understanding yes, balance is reduced and remainder is still subject to current rate.

EKAndrew wrote: »

Hi David - congrats on getting rid of that kind of debt!! (when you say gone - do you mean, their refund cleared this for you? or have you paid some extra yourself?)

I'm with you, in the beginning, it was great but turned into a nightmare. Do you mind me asking your initial loan amount? Mine was for 10k in 2001 - so i'm hopeful of a nice refund! My email has been sent, they asked for further info, and that has now been provided too, so just waiting on a response.

Fingers crossed - i just have no idea what kind of figure i will be offered

Go MSE'ers!!

Mine was £5K (taken out 2001) and just under £3K refund.

finley909

oscar52 wrote: »

Thats my understanding yes, balance is reduced and remainder is still subject to current rate.



Mine was £5K (taken out 2001) and just under £3K refund.[/thQUOTE]

That's certainly what the complaint response letter suggests.The only thing is, David has spoken to Santander who have told him that the rebate sits in a suspense account until the balance is brought down to the same as the rebate amount so effectively you would see no change on the interest til its paid off!