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

XXSCOTSLASSXX

lunch12345 wrote: »

Hi Scotslass
Can I just ask, are you complaining about how they calculated your refund ?
They calculated mine from 14 % (original rate was 6.9%) and they wouldn't give me a detailed breakdown so I went to FOS end Dec and they wrote to me 8th Feb saying they have written to Santander for their side of the story.
I think with more people going the FOS route it has spooked them into stalling tactics.
I will post when I hear from FOS and/or Santander.

no .... they did state on my letter that refund was calculated at 12.8% and i queried this as like urs mine was 6.9% at start... the response back I got was that 12.8% was the rate it was at the time santander took over in Feb 2010 and they had calculated at this rate .... which did make some sense as it was on a variable rate and had been higher than the initial 6.9% when they took it over ..... to be honest have no idea how they calculate it but my loan was cleared with the refund of just under 3.5k so i accepted their explanation.

Issue I have is unrelated to the flexible loan account is re ppi on another closed account. I claimed ppi back on the flexible loan account back in Aug last year and claim submitted and paid out in 2 weeks.... this time round they stalling as they are with the interest refunds everyone claiming for here.... point I was trying to make with my prev post is that its not just the flexible loan complaints that are dragging out its going across the board..... keep hope good luck all xx

lunch12345

XXSCOTSLASSXX wrote: »

no .... they did state on my letter that refund was calculated at 12.8% and i queried this as like urs mine was 6.9% at start... the response back I got was that 12.8% was the rate it was at the time santander took over in Feb 2010 and they had calculated at this rate .... which did make some sense as it was on a variable rate and had been higher than the initial 6.9% when they took it over ..... to be honest have no idea how they calculate it but my loan was cleared with the refund of just under 3.5k so i accepted their explanation.

Issue I have is unrelated to the flexible loan account is re ppi on another closed account. I claimed ppi back on the flexible loan account back in Aug last year and claim submitted and paid out in 2 weeks.... this time round they stalling as they are with the interest refunds everyone claiming for here.... point I was trying to make with my prev post is that its not just the flexible loan complaints that are dragging out its going across the board..... keep hope good luck all xx

Thanks for the update.
My gripe is that i was offered about £ 480 calculated at 14 % whereas others who have posted had theirs calculated at about 6.7 %. So....... if they are doing it at the rate when Santander took over, how was it 6. 7%??, which is even less than the initial rate?
I understand your refund was enough to clear the loan, and, in your case, I would have just accepted, but mine was definitely worth challenging as it was merely offset from my current loan still leaving £ 3.5K

XXSCOTSLASSXX

what was ur loan in total? mine was £7.5 limit taken out in 2002 at 6.9% as i said no idea how they calculate however £3.5k refund for what they say was from feb 2010 at 12.8% dont really make much sense lol so am not gonna be rocking the boat

lunch12345

XXSCOTSLASSXX wrote: »

what was ur loan in total? mine was £7.5 limit taken out in 2002 at 6.9% as i said no idea how they calculate however £3.5k refund for what they say was from feb 2010 at 12.8% dont really make much sense lol so am not gonna be rocking the boat

£ 5K in July 2006. Borrowed twice more (doh!) another £ 2K
Current bal £ 3.5 K (after rebate of £ 500)

kelr101

Oh this doesn't bode well for the rest of us!!!

I haven't received my post yet (at work!) so will update tonight if I've had a knock back as well

Thanks

karyny

Hi
I had a cahoot loan on which the interest rate was hiked up, I then repaid it in 2008 and threw all the paperwork away when I moved house. Is there a way I can find out the details of the loan so I can make a complaint or have I blown it by getting rid of the paperwork.
Many thanks for any help.

chasnasty

Had read elsewhere comments about interest charges, so just scrolling through these messages. Took out a £5K Flexiloan in 2003 (just to help with car purchase, no other movement on it). Something made me think quite a while ago that there may have been PPI on it which I didn't recollect asking for, but that got sidetracked with work etc. Last July raised the complaint with Santander, and within three weeks they confirmed acceptance of claim, offered £7902.73 (!), which I had within seven days. That paid off the loan and left a surplus 'in hand'. So now asking them why 20% interest - and see how long/what response.

XXSCOTSLASSXX

regarding your letter received farmer this part in particular....

These terms and conditions confirm that Santander have the ability to make variations in the interest rate. In particular we refer you to clause 13 of the attached Terms and Conditions. This condition would have been included within the Terms and Conditions of your agreement with Cahoot.
The flexible loan you chose had a variable rate of interest and offered the flexibility to draw down more funds without the need for a further credit search. It also gave you the opportunity to repay the full balance at any time, without penalty.

They are very quick to point out the t&c's re the variable rate etc however they also state the terms of the loan you chose..... when i made my initial complaint I had stated that they had removed all aspects of the flexibility of the loan in effect completely changing the product i had initially signed up for AFTER a large balance had been accrued...this isnt playing fair.. maybe worth noting this in your complaint to FOS.

happy_bunny_2

farmer1971 wrote: »

UPDATE! Received the Santander knock back letter today. I have posted the letter word for word as promised below. Looks like it's the FOS route for me and I would appreciate any ideas.

Thank you and good luck!

29th February 2012
Our Ref: XXXXXXX
Cahoot Loan : XXXXXX XXXXXXXX

Dear Mr and Mrs XXXXXX
Thank you for your e-mail dated 12 January 2012 addressed to our Chief Executive, Ms Ana Botin. Your concerns have been passed on to me to review and respond to on her behalf. I am sorry for the delay in replying and would like to thank you for taking the time to discuss this matter with me on 21 February 2012.
You have complained about the rate rises you experienced on your Cahoot flexi loan. In particular you say that these interest rate rises were unfair.
We have investigated your complaint and our position is as follows.
The interest rate rises were made in accordance with the terms and conditions of your agreement with Cahoot. These terms and conditions confirm that Santander have the ability to make variations in the interest rate. In particular we refer you to clause 13 of the attached Terms and Conditions. This condition would have been included within the Terms and Conditions of your agreement with Cahoot.
The flexible loan you chose had a variable rate of interest and offered the flexibility to draw down more funds without the need for a further credit search. It also gave you the opportunity to repay the full balance at any time, without penalty.
You were informed of the interest rate rises in advance both via your web based Cahoot secure messaging facility and in writing via email to your nominated account. This was an acceptable method of communication as all Cahoot accounts are operated online. As part of this process you were advised that you could move on to another product with Santander (Abbey at the time) which may have offered better rates and this could have been done without penalty.
While we appreciate that you consider the rate rises were significant, the interest rate ultimately charged on your Cahoot loan was in line with other flexible variable rate loans that were available in the market at that time.
Taking the above information into consideration, I am unable to find anything that would suggest that these changes made by Santander were unfair and I am therefore unable to uphold your complaint. I appreciate my response may come as a disappointment but I hope that I have explained why changes to the interest rate on your Cahoot loan were made in line with the Terms and Conditions of the account.
I have investigated and responded to all the issues you have raised. If you believe my decision is incorrect and you wish to refer your complaint to the Financial Ombudsman Service, I have enclosed a leaflet that explains how you can do this. You should contact them within six months of the date of this letter, enclosing a copy of it, as they would need this for their investigation.
Yours Sincerely

XXXXXXX XXXX
Manager
Enc. Financial Ombudsman Service Booklet
Terms and Conditions

Utter drivel. Same as they sent me and OH and we both got money back via FOS. They rely on you not bothering.

Good luck

HB

emmapurple

I too put a complaint in but after checking my cahoot history i had a small balance from 12-08 until 06-09 when it increased substancially because i added onto it. The loan then stayed at the same amount until last year when i paid it off as part of a divorce settlement, does anyone know if this would make a difference to my claim, as in, are they going to argue that the rates were already increasing at this point and that i had the choice not to add money to it? thanks in advance