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

Parro2403

The one thing I dont understand re the APR hike is....

In their response to me it says

I can confirm this decision is consistent with other decisions of this nature, and where a complaint has been made about the same matter, this decision has been previously supported by the FOS.

How can they say it is a consistent decision if they have paid out to some but not to others?

Parro2403

Sorry to bang on about this but I just need to get it clear before I raise holy hell in my complaint.

Last night i went back over the last 4 years worth of statements

I made payments against the loan totalling 13,380.32

Total Interest taken by Santander for the same period was 11,471. 95

Therefore a total of 1908.37 should have been paid from the Balance, however the balance has only reduced by 903....

Also

I noticed that a large majority of payments were actually less than the monthly interest the were charging!

Example

I made a payment of 250.10
The interest they took was 250.28

There are roughly about 24 monthly payments like this

Can that actually be right?


[FONT= ]The current interest rate on this account is 20%, which is the gross interest rate used to calculate the amount of interest due in any month, if this interest was compounded it would give an APR of 21.94%[/FONT]

resultwithsantander

I'm picking up the batton on this one, and I'm not letting go.

I've had the loan since 2003 which was originally advertised at 7.9%, they jacked the interest in 2008 to 16.9% and I've been paying through the nose ever since.

I have complained with the first letter, and they have now provided evidence of all the interest payments by month. I wrote to them again to push for a settlement, and received a call from Nathan explaining that it was within the T+Cs that they could increase the loan which I explained in know uncertain terms that I was aware of.

In the context of the original rate, and given the 0.5% base rate since 2007 I contend that this is unfair. While I know the ombudsman has supported a Sandander on a prior decision, I will be escalating it to them only so that they can side with Santander, such that I can escalate the matter to court as you must go to the ombudsman first in order for the court to hear the case. The £300 is worth it to have my day.

Can I ask if anyone thinks I should settle the loan now given I am able, or should I leave it going for the time being given what I am going to do next?

Thanks,

Steve

Parro2403

Mine sounds the same

Loan started in 2002 @ 7.79%

now stands at just over 20%

I have just rec' confirmation now from the ceo office that they will not reduce the APR...

Jasmine12

resultwithsantander wrote: »

I'm picking up the batton on this one, and I'm not letting go.

I've had the loan since 2003 which was originally advertised at 7.9%, they jacked the interest in 2008 to 16.9% and I've been paying through the nose ever since.

I have complained with the first letter, and they have now provided evidence of all the interest payments by month. I wrote to them again to push for a settlement, and received a call from Nathan explaining that it was within the T+Cs that they could increase the loan which I explained in know uncertain terms that I was aware of.

In the context of the original rate, and given the 0.5% base rate since 2007 I contend that this is unfair. While I know the ombudsman has supported a Sandander on a prior decision, I will be escalating it to them only so that they can side with Santander, such that I can escalate the matter to court as you must go to the ombudsman first in order for the court to hear the case. The £300 is worth it to have my day.

Can I ask if anyone thinks I should settle the loan now given I am able, or should I leave it going for the time being given what I am going to do next?

Thanks,

Steve

You don't have to go to FOS before you can take a claim to court. Arguably you could damage such a claim if you had already 'lost' at FOS.

Sending it to FOS will cause Santander to incur a £550 case fee, other than that it will just waste 3 month's+ of your time. FOS have already decided their position.

Just my two penneth worth. Good luck.

happy_bunny_2

Parro2403 wrote: »

The one thing I dont understand re the APR hike is....

In their response to me it says

I can confirm this decision is consistent with other decisions of this nature, and where a complaint has been made about the same matter, this decision has been previously supported by the FOS.

How can they say it is a consistent decision if they have paid out to some but not to others?

This is consistent with all later decisions made by the FOS. if you want an example, search for cahoot flexible loan here:
http://www.ombudsman-decisions.org.uk/Default.aspx

happy_bunny_2

Parro2403 wrote: »

Sorry to bang on about this but I just need to get it clear before I raise holy hell in my complaint.

Last night i went back over the last 4 years worth of statements

I made payments against the loan totalling 13,380.32

Total Interest taken by Santander for the same period was 11,471. 95

Therefore a total of 1908.37 should have been paid from the Balance, however the balance has only reduced by 903....

Also

I noticed that a large majority of payments were actually less than the monthly interest the were charging!

Example

I made a payment of 250.10
The interest they took was 250.28

There are roughly about 24 monthly payments like this

Can that actually be right?


The current interest rate on this account is 20%, which is the gross interest rate used to calculate the amount of interest due in any month, if this interest was compounded it would give an APR of 21.94%

Given 23% interest on 10k, thats about £191 interest a month.

None of the info on the figures they have been using adds up.

i would get the FOS to look at this one...as you are not disputing the rate, simply their figures used seems to be wrong.

happy_bunny_2

resultwithsantander wrote: »

I'm picking up the batton on this one, and I'm not letting go.

I've had the loan since 2003 which was originally advertised at 7.9%, they jacked the interest in 2008 to 16.9% and I've been paying through the nose ever since.

I have complained with the first letter, and they have now provided evidence of all the interest payments by month. I wrote to them again to push for a settlement, and received a call from Nathan explaining that it was within the T+Cs that they could increase the loan which I explained in know uncertain terms that I was aware of.

In the context of the original rate, and given the 0.5% base rate since 2007 I contend that this is unfair. While I know the ombudsman has supported a Sandander on a prior decision, I will be escalating it to them only so that they can side with Santander, such that I can escalate the matter to court as you must go to the ombudsman first in order for the court to hear the case. The £300 is worth it to have my day.

Can I ask if anyone thinks I should settle the loan now given I am able, or should I leave it going for the time being given what I am going to do next?

Thanks,

Steve

For the court stuff, PM 'Denza'. he's spent quite a lot of time looking into this and may be able to give you some advice.

Parro2403

happy_bunny wrote: »

Given 23% interest on 10k, thats about £191 interest a month.

None of the info on the figures they have been using adds up.

i would get the FOS to look at this one...as you are not disputing the rate, simply their figures used seems to be wrong.

Its taken a few weeks for Santander to get back to me....

They have confirmed the following:

In 2009, I made payments totalling 3058.17, interest payments totalled 1989.77 yet my balance went up by 56.64 in total for the year

In 2010, I made payments totalling 3175.47, interest payments totalled 2718.59 yet my balance went up by 26.53 in total for the year

In 2011, I made payments totalling 2991.79, interest payments totalled 2961.98, my balance reduced by 30.57 in total for the year

In 2012, I made payments totalling 2982.19, interest payments totalled 2801.16, my balance reduced by 183.59 in total for the year

In 2013, I made payments totalling 2804.12, interest payments totalled 1885.84, my balance reduced by 941.43 in total for the year

What worries me is that they have stated that these figures are correct at the rate of 23% and that rate hasnt changed for the years above.

What I dont understand is how can the figures be so different year on year if the rate hasnt changed?

I havnt contacted the FOS yet as want to get all my facts straight

happy_bunny_2

How can your balance go up when you pay 1k more than the interest?

And you are correct, how can the interest vary so much at the same rate?

I would just send it to the FOS with the info you have.