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

Hollielujah

Like many on here I stumbled across the thread so fired off an email to [EMAIL="complaints@santander.co.uk"]complaints@santander.co.uk[/EMAIL] on 23 February 2012 and received a letter through the post yesterday which sounds like the standard reply "thanks for your letter, we are looking into your complaint, will get back to you asap, blah, blah, blah..."

My Cahoot loan started in 2001 at a rate of 6.9% and, to be honest, until reading this thread didn't even notice that it had jumped to 20%! I initially drew down the full amount of £6k, paid some back then drew down again, the last time being in 2008 when Santander took over it. I have been paying it off ever since and have often wondered from time to time why it was taking so long to clear - now I know why! Because I was paying a set amount via DD I just never thought to check it out and didn't really take much notice of the monthly statements that come through - until now! It is beyond me how these banks come to the decisions that they do - even though I have outstanding balances on a few credit cards I am obviously seen as "a risk", even though I have never once missed a payment or made a late payment (to Cahoot or anyone else for that matter!) If they keep hiking up the interest how on earth are we ever supposed to clear our loan? Life is hard enough as it is and in these times of austerity you think they would cut us some slack! (They're banks, who am I kidding! LOL)

I for one will not be deterred - if (as I think is the likely outcome) my claim is not upheld I will be taking it to the FOS - good luck to us all with this

Weety_2

Hi all

I complained using the online complaint form and the CEO email address using a template from happy_bunny on the 22nd Feb and received the standard letter back on the 23rd acknowledging my complaint.

I’m not holding my breath from a positive outcome due to the number of people perusing claims.

I drew the full amount , paid some off and kept doing this until Santander took over.

Here’s some details on mine:

Original loan: £ 6K
When: 2002
Original Rate: 6.0% (ish)
Current rate: 17% (ish)
Borrowed more: Yes
Complained: End Feb 2012
Offer: TBA!

Cell

No further outcomes being reported since the two knock-backs.

I really do think that this has now reached a higher level of management, and that they will either concede, or we'll be in for a 'shock-and awe' type rejection frenzy.

One week to go until my eight weeks is up.

You would think that after PPI they would take a practical approach, but since when have banks learnt from their mistakes?

kelr101

One week for me too then Cell

Are you planning on taking it to the FOS if you don't hear anything or contact Santander direct first?

kelr101

I am starting to get nervous about the knock backs though...although it does seem that those who have received recent knockbacks all contacted Santander from Mid-January and have received acknowledgement on email, a letter and a phone call declining the complaint in rather quick succession.

Perhaps those who applied prior to a certain date are actually having their cases reviewed?

I haven't heard anything since my letter was received at the end of January, following my complaint on 12th January.

kenny_straw

....its been over a week now with no good or bad stories, like Cell says its likely reached the top levels now given the numbers claiming.
I have a feeling they may have been testing the water with a few rejections to see what the response would be....
If they call me with a rejection (email sent 12th Jan) I will take great pleasure in going to the FOS ...and I can just see Ann Robinson reading out the story on Watchdog as well.....by paying out to a significant amount of people they have set a precedent whether they like it or not, and surely now it would generate even more bad publicity they can ill afford at the minute? ....Im hoping against hope here!

Cell

kelr101 wrote: »

One week for me too then Cell

Are you planning on taking it to the FOS if you don't hear anything or contact Santander direct first?

I will naturally give them the chance to remedy any breach of their own guidelines.

We should bear in mind that a phone call alone does not constitute a resolution. As I under stand it in the event that they reject any claims a full letter detailing the reasons must be received.

The more I think about this the more I believe that they should take a practical view to this. My head is starting to fill up with references to Unfair Contracts as defined by law and any number of other scenarios where Cahoot/Abbey abused the terms of the product they were selling.

Just because they were allowed to increase the rate it doesn't mean that any increases can be indiscriminate. In theory they could have increased to 100%, 1000%. There must come a point where any independent arbitor would say that there was an abuse of position. The application of the terms and conditions has to be FAIR and TRANSPARENT.

At a time when account holders weren't allowed to close down an account in the event of an interest rate increase the balance of power was too far shunted towards the lender. This is especially the case for borrowers who kept to the terms and conditions of their loans.

And if rates were increased because their credit checks identified debt distress, or increased risk of default, then they cannot run an argument that says people could have accessed another fixed loan to pay off the flexible one. By definition they had decided that these people were less creditworthy. They can't have their cake and eat it.

Finally the risk of fraud on the loan was far less than a credit card as it had to be operated by the internet rather than by presenting a card. This also means that there were no associated costs of S75 claims.

Interesting...

Denza

For those interested in Cahoot's T&Cs as regards interest rate increase in thier flexible loan product then this is detail you may wish to refer to :

15.2 We may change our interest rates or charges at any time for one or more of the following reasons:

a. to maintain the competitiveness of our business as a whole, taking into account actual or expected changes in market conditions;

b. to reflect actual or expected changes in money market interest rates;

c. to ensure that our business is run prudently;

d. to reflect a change in general banking practice;

e. to reflect any regulatory requirements or guidance, or any change in the law or a decision or recommendation by a court or Ombudsman;

f. to enable us to harmonise our banking or charging arrangements;

g. to reflect changes in technology or in the direct costs we are required to pay others, or to take account of inflation; or

h. for any other reason that is valid.

lilly2011

lunch12345 wrote: »

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!!

Here's mine. A new thread might be an idea. Can anyone advise if that's ok to do?

Original loan: £ 11500
When :2001
Original Rate: 5.9%
Final Rate 20%
Borrowed more?: Paid off large amount then reused up to limit
Complained: 12/12/2012 – balance at this point £7250
Offer:£5975 - received 06/01/2012

debtox

Cell wrote: »

No further outcomes being reported since the two knock-backs.

I really do think that this has now reached a higher level of management, and that they will either concede, or we'll be in for a 'shock-and awe' type rejection frenzy.

One week to go until my eight weeks is up.

You would think that after PPI they would take a practical approach, but since when have banks learnt from their mistakes?

Cell, did you receive a written acknowledgement by letter that they were looking in to your complaint?

All I received was an autoresponse email after I submitted the complaint via the online form.

My 8 weeks is up on Friday.