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Cahoot Flexible Loan Rip Off...!!
Hi.
We have had a Cahoot flexible loan now for a number of years.
This is a mail we received.
We have decided to make changes to the rates we charge on the cahoot Flexible Loan.
From 7 March 2007, your rate will change to 19.9% APR variable.
Change to cahoot minimum repayment
At the same time, from 7 March 2007, the minimum repayment on the cahoot flexible
loan will increase from 2% to 2.5% of your outstanding balance each month.
The following wording will replace existing condition 3.2 of the flexible loan terms and conditions:
The minimum payment will be the greater of:
a. £50 (or the full flexible loan balance if it is less than £50); or,
b. 2.5% of the flexible loan balance.
If you are already making more than a 2.5% minimum repayment each month, this change
will not affect you and there is nothing else you need to do. If you are making
repayments of less than 2.5% your direct debit will be automatically adjusted
after 7 March 2007 - and your repayment amount will be a minimum of 2.5% or £50.
As a responsible lender, we have increased the amount of minimum repayment to ensure
that customer balances are reduced by a reasonable level each month. If you are
unsure about how much additional repayment you will now be making, please contact us.
Any questions or concerns?
If you have any questions or concerns about the changes to your cahoot account please give the
cahoot contact centre a call on 0844 9000 900*. We are available 8am to 8pm
Monday to Friday and 10 am to 6pm Saturday and Sunday. If you prefer, please email
us through 'contact us' from your personal homepage as messages sent from here
will be responded to as a priority.
A change to your cahoot flexible loan in March 2007. We have sent you
>an email about your cahoot flexible loan account. Your flexible loan
>interest rate will change from 15.9% to 19.9% APR variable from 7 March
Now as you can see this is an increase of 4% apr in one hit which amounts to a nearly 25 % total increase in APR. As you can expect my partner was on the phone like lightening and she spoke to the customer service guy. Basically he said that Cahoot are now owned by a Spanish bank and the flexibile loan side of the buisness isn't making money. He said he was disgusted too by the increases as this affects him because he has a flexibile loan with them too. He said he shouldn't be saying this but she said he was well peeved. The banks reckoning according to him is that no other bank offers this and because it isn't making money they want to charge the same rates as a credit card. His advice was to get a loan elsewhere and pay it off before the charges go even further.
Is it lawfull what they have done and if so can you recommend a bank that would be a good deal for a loan please.
We have had a Cahoot flexible loan now for a number of years.
This is a mail we received.
We have decided to make changes to the rates we charge on the cahoot Flexible Loan.
From 7 March 2007, your rate will change to 19.9% APR variable.
Change to cahoot minimum repayment
At the same time, from 7 March 2007, the minimum repayment on the cahoot flexible
loan will increase from 2% to 2.5% of your outstanding balance each month.
The following wording will replace existing condition 3.2 of the flexible loan terms and conditions:
The minimum payment will be the greater of:
a. £50 (or the full flexible loan balance if it is less than £50); or,
b. 2.5% of the flexible loan balance.
If you are already making more than a 2.5% minimum repayment each month, this change
will not affect you and there is nothing else you need to do. If you are making
repayments of less than 2.5% your direct debit will be automatically adjusted
after 7 March 2007 - and your repayment amount will be a minimum of 2.5% or £50.
As a responsible lender, we have increased the amount of minimum repayment to ensure
that customer balances are reduced by a reasonable level each month. If you are
unsure about how much additional repayment you will now be making, please contact us.
Any questions or concerns?
If you have any questions or concerns about the changes to your cahoot account please give the
cahoot contact centre a call on 0844 9000 900*. We are available 8am to 8pm
Monday to Friday and 10 am to 6pm Saturday and Sunday. If you prefer, please email
us through 'contact us' from your personal homepage as messages sent from here
will be responded to as a priority.
A change to your cahoot flexible loan in March 2007. We have sent you
>an email about your cahoot flexible loan account. Your flexible loan
>interest rate will change from 15.9% to 19.9% APR variable from 7 March
Now as you can see this is an increase of 4% apr in one hit which amounts to a nearly 25 % total increase in APR. As you can expect my partner was on the phone like lightening and she spoke to the customer service guy. Basically he said that Cahoot are now owned by a Spanish bank and the flexibile loan side of the buisness isn't making money. He said he was disgusted too by the increases as this affects him because he has a flexibile loan with them too. He said he shouldn't be saying this but she said he was well peeved. The banks reckoning according to him is that no other bank offers this and because it isn't making money they want to charge the same rates as a credit card. His advice was to get a loan elsewhere and pay it off before the charges go even further.
Is it lawfull what they have done and if so can you recommend a bank that would be a good deal for a loan please.
0
Comments
-
You're the second one today
http://forums.moneysavingexpert.com/showthread.html?t=370375
Its a flexible loan so by its very nature the bank can raise the rates to whatever they feal fit.0 -
OMG !! I got stung from 9.9 to 14.9 in december, praying I dont get one of these letters, its abysmal what they are doing. Waiting for my searches to clear and then hopefully look for another loan to clear this before it get any worse. I am getting really down with this cahoot issue as feel like im being exploited as I dont have any get outs at present so am stuck for nowDmp Mutual Support thread member No 820
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I have just received notificatin from cahoot that my interest rate on y loan is going to go up to £19.9% I can't believe they have done this. How are we supposed to get out of debt?? I am so angry but do not have a good credit rating to get a different loan. This gives me so much motivation to get out of debt!! ggrrrr0
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Done me over too, now 14.9%, i cant do much though as i dont think i can get a better rate on incapacity benefit at the mo, when i took it out i was on a good salary, things have now got fiancial worse and sliding rapidly!!0
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Paul Cornwall.. With you being on incapacity benefit it may be worth gpoing to C.A.B, welfare rights o payplan. They may stop inteest on loan and le you pay it at a reasonable rate. This is why what they have done is so bad, because the people who cant afford different loans are the ones being penalised. I think its disgraceful and I hope that we all can put 2 fingers up to these thieves very soon!0
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