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

gbatey

debtox wrote: »

Maybe there is a certain level of interest rate or percentage increase that is considered unfair by FOS. Farmer's went up to 16.5% and many others have been at 20%+. Maybe 16.5% falls in to the 'fair' window.



What was your interest rate?

Hi all, my interest rate I think was around the same as everyone elses-started very low then up to the 12% mark and then stopped around 19%.

The lady on the phone who called me, stated that as I had the emails saying the interest rates were going up and as there were other fixed rate loans out there on the market at the time that were lower than mine, then I basically had the chance to move loans at the time. She said I can appeal to the FOS when I get my paperwork from them so I'll see what comes through...

FYI for all those waiting to hear - I sent my email on the 4th Jan, received acknowledgement the next day, then a letter after the 21 days to respond time frame and then received the knockback phonecall yesterday

happy_bunny_2

Hi all,

just cleared a backlog of PMs for my complaint template letter, never had 25 PMs in one day, wondered !!!!!! was going on until I saw the MSE story.

I don't think the wording matters too much, so to save my fingers here it is, just change as you need.

Good luck everyone and feel free to PM me or post on here if you need any pointers. Not that I'm an expert or anything...

"I wish to register a formal complaint regarding the way the interest rate applied to my account has been increased without explanation after a large proportion of the balance has been accrued. I believe that giving me a high credit limit then increasing the interest rate when I use it to be unfair.
I believe that you have used these rises to maximise profit at my expense as you would have suspected that I would be unlikely to have access to sufficient funds to clear my account and therefore avoid the interest rate rises.

I therefore request that you reduce my interest rate to the level of that when the balance was accrued, and refund the unfair interest (difference between rate at balance accrued and rate charged via increases since then.) charged to date.

I look forward to your written response in due course."

OP also posted his much earlier in the thread.

happy_bunny_2

I was one of the first to complain and was rejected, had to go via FOS to get my 5K+ refund.

OH complained much later, after loads on here had refunds, rejected also. Went to FOS and got a good result.

Don't seem like any hard and fast rules for rejection, so advice is if rejected go to FOS. Also costs Santander an extra £500 per case referred, so makes me feel better.

kenny_straw wrote: »

Its all very strange indeed, surely for Santander to turn around and stop paying out to customers for exactly the same complaint others have been successful in would be inviting a media storm!
Cell I think from previous posts your complaint was sent around the same time as mine (12Jan)..so lets remain hopeful!

happy_bunny_2

I too had emails, stating my interest rate was going up, no reason given. The FOS didn't agree it was fair in my case or OHs. They didn't reduce my interest rate for the remaining balance, as the FOS said I could have got anotehr loan when I realised i had grounds to complain.

I think Santander get a drip feed from CRAs, so know whether or not you are likely to be approved for another loan and set your rate accordingly. But, as they gave no reason for the increases, who knows.

gbatey wrote: »

Hi all, my interest rate I think was around the same as everyone elses-started very low then up to the 12% mark and then stopped around 19%.

The lady on the phone who called me, stated that as I had the emails saying the interest rates were going up and as there were other fixed rate loans out there on the market at the time that were lower than mine, then I basically had the chance to move loans at the time. She said I can appeal to the FOS when I get my paperwork from them so I'll see what comes through...

FYI for all those waiting to hear - I sent my email on the 4th Jan, received acknowledgement the next day, then a letter after the 21 days to respond time frame and then received the knockback phonecall yesterday

happy_bunny_2

If the FOS rejected a complaint, i would send several examples from this thread to them. I would however just complain to the FOS if Santander reject the complaint, worked for me and OH and others also.

grafter7 wrote: »

I may be being naive her but surely if a number of complaints have been upheld and payments made, there is sufficient case law to query any declined applications?

Letter sent today

Cell

happy_bunny wrote: »

I

I think Santander get a drip feed from CRAs, so know whether or not you are likely to be approved for another loan and set your rate accordingly. But, as they gave no reason for the increases, who knows.

I think that's a very good point. They can do an off the cuff credit score (and indeed do, if all the blurb about risk based repricing is to be believed), and by increasing the rate implicitly admit that you are a higher risk and therefore unlikely to be able to access alternative forms of credit.

I can't recall how I was informed of increases, if I was at all. And I'm usually good at these things. I can't access the old statements, and when Santander took over it was already 20% and never changed.

happy_bunny_2

Cell wrote: »

I think that's a very good point. They can do an off the cuff credit score (and indeed do, if all the blurb about risk based repricing is to be believed), and by increasing the rate implicitly admit that you are a higher risk and therefore unlikely to be able to access alternative forms of credit.

I can't recall how I was informed of increases, if I was at all. And I'm usually good at these things. I can't access the old statements, and when Santander took over it was already 20% and never changed.

No doubt the same as me, an email saying that there is a personal message waiting for you.

When I logged in, I would have a message something like "we are increasing the interest rate on your flexible loan to x% as of <date>"

No reason, no nothing.

Sure I had several in a year that took the rate from 7% to 24% over time. OH had the same, but got jacked to 22%

benvic123

Hi, i'm also new to this. I took out a Cahoot flexi loan in 2003, fully paid off in 2008. Could someone please PM the complaints letter/email template to me so I can start the process?
Thanks

happy_bunny_2

benvic123 wrote: »

Hi, i'm also new to this. I took out a Cahoot flexi loan in 2003, fully paid off in 2008. Could someone please PM the complaints letter/email template to me so I can start the process?
Thanks

see post #626 above. It is on there

Cell

I really don't understand why so many people are asking for the template when it's staring them in the face or is quoted in the last couple of pages.

Probably goes to show how little people actually read posts rather than skim them.

Grumpy mode off. Until someone else asks for the template again...:D