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

byebyedebt

VanGoghsEarhere wrote: »

In my complaint to the FOS I've challenged the fact that no new credit agreement was ever issued for what is, essentially, a different product. I definitely feel that these are legitimate grounds to challenge the new 'fixed loan'. Whether FOS see it this way is another matter though. See highlighted below.
Section 61 lays out the formalities required for a regulated agreement. The terms must be found in a signed and legible document, a copy of the unsigned agreement must be supplied to the debtor or hirer, a copy of the signed document must be supplied to the debtor or hirer and a notice advising the debtor or hirer of his rights of cancellation must be included with the signed and unsigned copies. The "signed and legible document" is described in Section 61 as a document which contains all the prescribed terms, other than implied terms, and is, when presented to the debtor or hirer for signature, in such a state that all its terms are legible. Such a document must be in the form "prescribed by regulations".
The regulations in question are the 1983 Regulations (UK Parliament SIs 1980-1989/1983/1551-1600/Consumer Credit (Agreements) Regulations 1983 (SI 1983/1553) 1983 No 1553 "Consumer Credit (Agreements) Regulations 1983"). These regulations laid down specific rules regarding certain "prescribed terms". For example, a regulated credit agreement had to contain prescribed information about the amount of credit, the length of any fixed term loan, the amount of monthly repayments and so on. If a lender failed to comply with the prescribed regulations then the agreement would not be "properly executed" under section 61 and could then be challenged as "irredeemably unenforceable" under section 127.

Magic. If anyone has had a complaint rejected then use the above to reopen a complaint with Santander and then take to the ombudsman.

This is the same reason why Northern Rock Assett Management are about to refund all interest on loans back to 2008. Can't believe I didn't think of this earlier.

Diamond_Gaz

kelr101 wrote: »

Identical response received today.

Says to me that these cases have NOT been reviewed independently at all.

Same here, heard nothing for ages, then a full identical response received today. Independently reviewd? No chance!!

pcollinson

Hi I stumbled across this, and like everyone else I had a Cahoot flexible loan where the interest rate was increased. I have since paid off the loan and may have trouble finding all the details. Is there anyway I can get this from them?
Many thanks
Penny

Potatofrisky

Hi all

I have been following this thread closely since the start. I have too complained to santander and the FOS. I am awaiting the FOS review and it should be not too long now, complaint originally submitted to the FOS back in March! (hopefully). I mentioned to Santander and the FOS the issues relating to the interest hikes and the actual change of the product. I did mention that I signed for the terms and conditions for a product for a flexible loan with access to the account online to draw additional funds and to pay amounts off the balance when I need too. This part of the product as you are all aware was removed back in 2006 with no offer to change to a fix term product since taking out the flexi loan back in 2001 but the FOS has just focused the complaint on the interest hikes not the latter!!

I will have some time over christmas and I will be submitting a small claims court application for just under £5000 for the overpaid interest and the fact that the loan relationship has changed since 2006 under the "unfair relationship test" under section 61 and 127. I am not sure how I should approach the claim in detail so I would appreciate any advice towards this claim. I do think the FOS is toothless and useless in my opinion and not because of this case.

I will be writing to Santander to highlight my grievances and about the pending application to the small claims court to see if they will settle out of Goodwill. I submitted my original complaint to the FOS back in March 2012, I cant and do not want to wait another 9 months for the FOS just to reject my complaint!! :mad:

Your feedback and advice appreciated.

Denza

I'm not sure if this is a good option or a terrible option but there are loads of legal firms prepared to review/tackle cases on behalf of borrowers should they feel the credit agreement (and by proxy T&Cs) are unfair.

Simply Google "Unenforceable credit agreement" for starters.

I have no idea about the merits of either this course of action or the firms involved.

Please note also that the firm I have been speaking with regarding a potential class action in the future are not amongst the above as they are known to me through professional acquiantance. As stated before this would be the last resort for me due to the projected timeline for resolution.

Good luck to all.

halifax71

Potatofrisky wrote: »

Hi all

I have been following this thread closely since the start. I have too complained to santander and the FOS. I am awaiting the FOS review and it should be not too long now, complaint originally submitted to the FOS back in March! (hopefully). I mentioned to Santander and the FOS the issues relating to the interest hikes and the actual change of the product. I did mention that I signed for the terms and conditions for a product for a flexible loan with access to the account online to draw additional funds and to pay amounts off the balance when I need too. This part of the product as you are all aware was removed back in 2006 with no offer to change to a fix term product since taking out the flexi loan back in 2001 but the FOS has just focused the complaint on the interest hikes not the latter!!

I will have some time over christmas and I will be submitting a small claims court application for just under £5000 for the overpaid interest and the fact that the loan relationship has changed since 2006 under the "unfair relationship test" under section 61 and 127. I am not sure how I should approach the claim in detail so I would appreciate any advice towards this claim. I do think the FOS is toothless and useless in my opinion and not because of this case.

I will be writing to Santander to highlight my grievances and about the pending application to the small claims court to see if they will settle out of Goodwill. I submitted my original complaint to the FOS back in March 2012, I cant and do not want to wait another 9 months for the FOS just to reject my complaint!! :mad:

Your feedback and advice appreciated.

The unfair relationships provisions

Section 140A of the 1974 Act http://www.legislation.gov.uk/ukpga/2006/14/section/19 provides that a court may determine that the relationship between a lender and a borrower arising out of a credit agreement (or the agreement taken with any related agreement) is unfair to the borrower because of:

any of the terms of the credit agreement or a related agreement

the way in which the lender has exercised or enforced its rights under the credit agreement or a related agreement, or

any other thing done (or not done) by or on behalf of the lender either before or after the making of the credit agreement or a related agreement.

“140B Powers of court in relation to unfair relationships http://www.legislation.gov.uk/ukpga/2006/14/section/20



(1)An order under this section in connection with a credit agreement may do one or more of the following—



(a)require the creditor, or any associate or former associate of his, to repay (in whole or in part) any sum paid by the debtor or by a surety by virtue of the agreement or any related agreement (whether paid to the creditor, the associate or the former associate or to any other person);



(b)require the creditor, or any associate or former associate of his, to do or not to do (or to cease doing) anything specified in the order in connection with the agreement or any related agreement;



(c)reduce or discharge any sum payable by the debtor or by a surety by virtue of the agreement or any related agreement;



(d)direct the return to a surety of any property provided by him for the purposes of a security;



(e)otherwise set aside (in whole or in part) any duty imposed on the debtor or on a surety by virtue of the agreement or any related agreement;



(f)alter the terms of the agreement or of any related agreement;



(g)direct accounts to be taken, or (in Scotland) an accounting to be made, between any persons.



Most importantly part 9 of 140b states: -



(9)If, in any such proceedings, the debtor or a surety alleges that the relationship between the creditor and the debtor is unfair to the debtor, it is for the creditor to prove to the contrary.”



Also make sure the claim in made under Practice Direction 7b - http://www.justice.gov.uk/courts/procedure-rules/civil/rules/pd_part07b

kenny_straw

Got my official reject letter from FOS by post this morning. At a quick glance it looks a copy and paste job of Farmers.
Not surprised, though still peed off all the same. this time last year they were paying hand over fist!

Denza

Received my letter also. Again it's a Farmer template cut and paste with minor edits.

Absolutely every point I raised with direct reference to OFT guidelines to unfair relationships, terms in consumer contracts and practices has been ignored. Not even discussed.

Completely and utterly ignored.

I've actually got a lot more respect for Cahoot/Santander than the Financial Ombudsman Service at this time.

MCSAVE

I've still not received my letter, but I have no doubt what it will contain. I've been trying to do some research into CCA guidance for fixed loans as per the current compensation that Northern Rock customers are receiving due to errors with the statements they received. Certain things have to be in those statements, including the original sum borrowed, the opening balance and the closing balance. I'm sure that Santander will argue that this loan was not a fixed loan, but it's certainly not flexible! I've checked my statements and all 3 are not present, which means that they are not allowed to enforce the loan, therefore any interest paid since the fault occured (ie when they first didn't show the 3 figures) should be returned. The problem will be proving that this loan wasn't flexible, but I think that we can probably do that can't we? Anybody else got any thoughts?

bankbasher2000

Just got an email from the FOS saying there is a letter in the post ... I have no doubts that the only thing different to anyone elses will be my name.