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

happy_bunny_2

lilly2011 wrote: »

Hi HB, i was told today that Santander's inhouse DCA now have the account back and that once i accept the settlement, the cheque will be sent to them and the in house DCA will view it as a partial settlement.

I tried to argue that the vast majority of the refund relates to the 9 years i was making full contractual payments on the account but it was checked with a Manager and i was told there's no chance of the cheque coming to me.

Don't get me wrong, i'm grateful for the refund offer but i have a default against my name despite making not far off the contractual payments on an agreed arrangement and if the rate rises hadn't of occured, the loan would have been cleared some time ago when i was in full time employment and would have been in a position to have overpaid especially where the rate would have been lower.

Not sure what to do now. Will an FOS complaint make a difference?

Wow, tricky.

I guess you have the choice of rejecting the offer, seeing what they come back with and I'd you are not happy going to the FOS.
Risk losing it I guess, but hard for them to do so as you can quote lots of examples from here.

Or

Accept the offer and accept they are less likely to get a ccj. What would be the balance remaining is you accept partial settlement?

Or

You could negotiate for the payment to be a full and final settlement. May take this as you have defaulted.

Could also argue the rises contributed towards the default and mention that to them as reason for full settlement or reject and take to fos.

Hth

Hb

Corkey1

I have not looked at the account in years... i called Santander today after seeing this feed. I was told the outstanding balance is £6541.51. The original loan sum was in the order of £9,000 . I have had the loan for 10 years and find it very hard to believe I have only paid off £2,500 especially as my monthly repayments have been in the order of £170.00 - £220.00. The account was taken out in 2002 with the company Cahoot. Letter has been sent off

rustopha

Hi.. i have just submitted my complaint letter, my loan was at 7% in 2001.

i was under the impression from the marketing at the time, the wording 'flexible' referred to the fact the loan itself was flexible (to the benefit of the customer) so could be paid back and borrowed again without starting new loan arrangements.

but anyway, i have just noticed from my original 2001 agreement from cahoot, that the minimum payment that applies to my balance, states they would take 3% of the outstanding balance. on inspecting the statements i have, the minimum payments have been as low as 2%, which would only result in me being kept in debt for longer & last month it was still only 2.47% of the balance. and the only way this can be increased according to santander, is to make additional payments by cheque, making this far from a flexible loan.

has anyone else noticed this too, or did i miss an update to the minimum payment percentage rate?

i'll post an update when i hear back from santander about the interest hiking complaint

highadmiral

Corkey1 wrote: »

I have not looked at the account in years... i called Santander today after seeing this feed. I was told the outstanding balance is £6541.51. The original loan sum was in the order of £9,000 . I have had the loan for 10 years and find it very hard to believe I have only paid off £2,500 especially as my monthly repayments have been in the order of £170.00 - £220.00. The account was taken out in 2002 with the company Cahoot. Letter has been sent off

Yes i can well believe that !!
These loans work like a credit card account without the card.The minimum monthly payment drops as the balance drops which obviously reduces the amount of capital coming from the balance and prolongs the loan.
I have paid for 6 years and only cleared £1000 from the balance despite having made approx £4500 in payments !.Had i not cancelled the ppi about 3 years ago i think i would have only cleared about £400 from the balance.

I made some rough calcs last night and worked out that with the ppi on it would have run for the best part of 40 years.The figures are frightening !

Has yours got ppi on too,from the look of your figues it may have ?

Cell

Well there goes nothing...e-mail sent.

I paid my loan off in October, so will it be a cheque, an offer, or a 'Dear John' lol?

To be honest I can't believe that it is this easy.

Naturally I'll report back because threads like this are enormously helpful:T

hr9hr9

Hi

Does anyone know how long it takes for settlement offers to be applied to balances as I am thinking about cancelling DD's, or should I just to this anyhow as they will be paid off.

Helen

TheWanderer77

The whole process for me, from my initial letter to getting the credit on my loan was about 10 weeks

dawnybabes

The bloke who rang me yesterday said max 8 weeks ...

happy_bunny_2

hr9hr9 wrote: »

Hi

Does anyone know how long it takes for settlement offers to be applied to balances as I am thinking about cancelling DD's, or should I just to this anyhow as they will be paid off.

Helen

Be careful as if you miss a payment they may mark it as such on your credit file.

hr9hr9

Yes, thats what I was thinking and I have a perfect credit record, so don't want to ruin it.

I will wait for my next statement. TY for replying.

happy_bunny wrote: »

Be careful as if you miss a payment they may mark it as such on your credit file.