cahoot loan taken over by santander - APR increase?

dynamis_dk

Hi all, I've been a lurking guest around this site for some time and i'm just about to sort out taking action on some PPI for loans and cards over the last 5-6 years.

While browsing I came across a thread for Cahoot Flexirate loans and some refunds for interest increases so I've checked out my loan details.

Now mine was setup in 03/2006 and the agreement signed at 9.7% APR. Now in 03/2010 the loan was then transfered to Santander due to the closure (or what ever actually happened) of cahoot and I have a letter stating the £3172.42 balance with an interest rate of 9.29% and APR of 11.9%.

My payments to cahoot was originally £145.36 monthly but changed to £167.16 monthly once santander had control of the loan.

Given my original loan was a fixed rate loan, can they just change the APR on moving the loan or should this have remained fixed?

I'm afraid I don't have any signed agreement in my paperwork box for the agreement with Santander so I can't even say if I knew this happened at the time.

pheonixrising21

If this is a fixed rate loan, then in my opinion, no, Santander should not have adjusted the rate.

Call Santander and ask for a copy of the credit agreement that you signed

Apples2

dynamis_dk wrote: »

While browsing I came across a thread for Cahoot Flexirate loans
Now mine was setup in 03/2006 and the agreement signed at 9.7% APR.
Given my original loan was a fixed rate loan,

Could you clarify the bits in Bold?

Did you sign up for a Flexi Rate loan or a Fixed Rate loan?

dynamis_dk

I was browsing the forum and I came across a thread for CahootFlexirate loans. This prompted me to check if mine was fixed or flexible.

My Fixed Rate was setup in 03/2006 and the agreement signed at 9.7% APR.

---

There you go - maybe the first time it wasn't overly clear.

XXSCOTSLASSXX

dynamis_dk wrote: »

I have a letter stating the £3172.42 balance with an interest rate of 9.29% and APR of 11.9%.

not really sure as to what this means i think ud really need to contact santander and request all info on the loan if u have the original loan paperwork and they have upped the apr then i would think this is wrong ud need to get clarification from them tho. I had a flexible loan with them and received refund back this was due to the apr jumping from 6.9% to 21% the flexible loan is a totally different issue tho. Think ur 1st step would be to contact Santander and request they clarify what you had. (edited as realised loan will now be paid off)

XXSCOTSLASSXX

https://forums.moneysavingexpert.com/discussion/3029520

you might want to take a look at this thread it details the same issue

dynamis_dk

Sorry I seem to have muddied this up for you guys

I 100% had a Cahoot Fixed Rate Loan - I have the paperwork for that in front of me. That loan was automatically transfered to Santander when Cahoot ceased to offer services etc. Until its transfer to Santander, I paid a monthly sum of £145.36

The Santander loan I was transfered to isn't a named 'product' such such but is listed as Type of Loan: 'Repayment'. Account is a 'Unsecured Personal Loan'. I paid a monthly sub of £167.16

The APR on my Cahoot loan was 9.29% and the Santander loan increase this to an APR of 11.9%

Does that make it any clearer? I have the paperwork here which states the rates, repayment amounts etc but nothing which is a customer copy for me to sign so I'm not sure if they sent anything for me to sign and return. My guess would be as they already had my signed paperwork I returned to Cahoot when the loan was originally organised from them.

dynamis_dk

Cheers for that XXSCOTSLASSXX - You posted while I was writing the above.

I've have a read and it sounds the same as whats happened to me, however my bank statements for that period and the statement from Santander confirm they did infact take the higher amount of £167.16 monthly until the loan was paid off in early 2012. I'm going to go into the branch and ask a few questions tomorrow as its my day off work just to see what answers I get (if any). Failing that I'll go down the same route as the thread you linked to

dynamis_dk

I've popped into my branch today and spoke to a nice girl who apologies that they don't have access to all the loan history in branch so I could call a number to speak to the loans team.

They prompty stated they have an email about the cahoot --> santander transfers and advise I email [EMAIL="Complaints.ChairmanCB@santander.co.uk"]Complaints[/email].ChairmanCB@santander.co.uk.

I mentioned to them my case here is nothing to do with a flexible rate loan but he insisted there is no one in his department who would be able to deal with my question so I would need to email in.

Does anyone know where the above email goes to and if i'm likely to get any response?

I've worked out the difference between the initial payment amount on the cahoot loan and the higher payments on the santander loan exactly match the PPI I was paying at the time so I'm presuming they have added to PPI amount to the overall and taken them both as one higher payment. I'm a little conserned as there is no mention of PPI on the actual paperwork from Santander and I don't want to be run about trying to find out such a simple bit of information.