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

kelr101

Hi Jo,

Please see a copy of the template below, as posted by Happy_Bunny on page 32

"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."


Obviously you need to include your personnel details and any rate values if you know them and feel free to change the template as required.

I sent my compliant to [EMAIL="ceo@santander.co.uk"]ceo@santander.co.uk[/EMAIL]


Thanks

JoMatt165

kelr101 wrote: »

Hi Jo,

Please see a copy fo the template below, as posted by Happy_Bunny on page 32

"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."


Obviously you need to include your personnel details and any rate values if you know them and feel free to change the template as required.

I sent my compliant to [EMAIL="ceo@santander.co.uk"]ceo@santander.co.uk[/EMAIL]


Thanks

Thanks Kels, all done lets see what happens.

gbatey

farmer1971 wrote: »

Hi Cell we are still waiting for our 'knockback' response in writing.

The polite lady from Santander did however seem very interested in whether or not we would persue our claim with the FOS. During the 'knockback' call last week she mentioned it on more than one occasion. I didn't let the cat out of the bag and said as little as possible as we all know these phone calls are probably being recorded.

I feel they may be reviewing the whole thing at the moment and will wait until the end of the week before I chase up the official complaint rejection letter. Will I be taking this complaint to the FOS? Definitely!!! It's going to cost them at least £500 whatever happens.

Keep the pressure up Cell! Good luck

I'm still waiting for my knockback in writing too (phonecall was now a week ago) and like you, she mentioned if I was taking the complaint to the FOS, that I was to contact them to let them know so they 'could prepare my details for the FOS'... she mentioned that a few times too...

happy_bunny_2

fairydust30 wrote: »

I got my acknowledgement letter today through the post (complained 23rd feb) its dated 24th). They may not have set a precedent and they may have been goodwill gestures but they dont get to treat me any different to those whom have received offers! So, no not backing down if I get rejected - rate increases have been the bane of my life hence I STILL have the loan ten years on....

If you got rate jacked on a credit card before you were allowed to opt out then send the card company a similar complaint. I got money refunded from one and interest rate halved and a small refund and slightly lower rate on another.

Both got rejected by card companies but FOS was very helpful

Todge_2

Email address's

complaints@santander.co.uk
Ceo@santander.co.uk

Complaints form can be found as below (sorry as I'm a new user I'm not aloud to put links in posts yet)

Go on Santander website, click on "contact us" (top right hand corner), click on "complaint" (right hand side column)

Look down the page for "COMPLAINTS FORM" (in red text)


I got my letter today, emails sent on 23rd

fairydust30

happy_bunny wrote: »

If you got rate jacked on a credit card before you were allowed to opt out then send the card company a similar complaint. I got money refunded from one and interest rate halved and a small refund and slightly lower rate on another.

Both got rejected by card companies but FOS was very helpful

happy bunny - I think this has happened as I also had a credit card with cahoot (my finances are debt hell) along with others but I dont think I probably kept any paperwork - more than likely read it, didnt think there was anything I could do about it and then binned it...? I do still have the credit card accounts - theyve probably all done it to me! When did the whole 'opt out' option start occuring _ I could either try complaining with no details or I could ring them and see if they have the rate rises on file - dates etc. Ill try anything as situation is dire...

lunch12345

lilly2011 wrote: »

Would it be an idea to have a list of those that have had refunds and the amount?

Glad i put my complaint in when i did. Fingers crossed for those still waiting to hear. The refund i received was life changing after 11 years of repaying this loan so i really hope it all works out for the rest of you

I think thats a great idea Lilly 2011.


Here is mine:
Original loan: £ 5K
When :2006
Original Rate: 6.9 %
Borrowed more: Yes
Complained: End Nov 2011
Offer: £ 495 to credit loan
Other details: Requested breakdown of offer, they refused (gesture of goodwill etc). Calculated at original rate
14 %!! went to FOS early Jan-Awaiting investigation by FOS
.
I think if we can all post, it may put things in perspective?
.
This may need putting on a new thread? That is beyond my capabilities!!

VanGoghsEarhere

Hi folks

Kinda stumbled across this thread and so glad I did. Many thanks happy_bunny for your template and helpful comments. For a while I thought I was the only one being done-over but it's a bank so should have known better. It is regrettable that so many people have been affected. I remember about 20 months ago I contacted them regarding this issue and asked to have the interest rate reduced. They asked me to apply for a fixed loan covering the amount outstanding and then turned me down. Anyway, luckily I still had paperwork in respect of the 'original' loan and have sent the following email (thanks also to fairydust30) to ceo@santander.co.uk. I'll let you all know how this turns out. LAready had a run in with them over PPI last year and after several weeks and referral to FOS got £570 refund (in respect of a credit card).

Hello,

Account: XXXXXXXX

I am writing to raise a formal complaint about the way my Flexible Loan Account has been handled. Since opening it with Cahoot in February 2003, with an APR of 8%, the account has been unfairly subject to a substantial interest rate rise with absolutely no explanation after a large proportion of the balance had been accrued. The APR now stands at 20%! Upon inspection of my most recent loan statement I see that this rate has been applied since 11th August 2008. I believe that it is highly unfair / unethical to increase the interest rate by 250% once the account had been used and an outstanding balance accrued. Furthermore, in the email confirmation I received upon opening the loan it states that "That's why your flexible loan aims to give you: the same APR however much you borrow" (to re-iterate, the APR stated on the signed loan agreement form is 8%). I believe that you have used this rise 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.

Therefore, I request that you reduce the interest rate on this account to the level it was at the time the balance was accrued AND also refund the unfair interest (the difference between the rate at the time the balance was accrued and the higher rate charged via the increases since then) charged to present.

I sincerely hope that this matter can be resolved amicably but would advise you that where you to reject this request outright I will pursue the matter through the Financial Ombudsman Service.

I have attached documentation which supports my claim.

I look forward to receiving your response.

Yours faithfully,

XXXXXXXXXXXX

Attached were: Original agreement cover letter, my copy of original agreement, copy of email confirmation of the account creation & most recent loan statement (had date of when 20% rate was applied)

Thanks once again. Fingers, toes etc Xed

stillsy

Hi,

I too have a Cahoot flexible loan and my mother also had one. Can anyone advise on what to put in the letter to them? Do they need actual dates and balances etc... or is it more simple than that?

Regards
Paul

kelr101

Hi Stillsy,

There is a great example letter above your post from VanGoghsEarhere which could be used...or just refer to the template on page 35 from Happy_Bunny

Make sure your quote your account number in the letter/email (email is quicker)

Thanks
Kels