Cahoot/Santander/Westcot

annie_1608

I have a Cahoot flexible loan which dates back to 2004. This was originally taken out for £8500 at an interest rate of 4%. Once Cahoot products dropped from the market, this was subsequently sold to Santander. They have since put the interest rate up to above 20%. I have paid this loan consistently but since the disgusting interest rate hikes, I have become more and more disillusioned with Santander and haven't paid them since Christmas. I am currently in dispute with Santander and have sent them numerous emails asking them to refinance the loan at areasonable interest rate and stating to them that should they do this I will repay the loan in full, but they refuse. They have now passed my details on to Westcot Financial Services who are sending me threatening letters about "doorstep" collections etc. I know this was stupid but it is so frustrating that I have been paying this loan since 2004 and I am still no further forward.

I understand this loan needs to be repaid and I have every intention of doing so, especially now a DCA are involved.

I have sent Westcot a doorstep collections letter while I try to see if I can get a loan from elsewhere at a better interest rate.

Meanwhile, strangely, I got a print of my credit report from both Experian and Equifax and neither of these reports show any mention of this? Is this because the debt is from 2004?

Any help would be greatly appreciated.

stewil18

Does the flexible part only come from the length of term or from the rate too? 8 years is a long time for a loan

annie_1608

Thanks for replying.

Sorry... not very good at all this sort of stuff!

I have a copy of the original credit agreement from Cahoot if that would help? But don't really want to post it on here......

Thanks a lot.

Tixy

Formally disputing the interest rate is one thing (and there are others in your situation that are doing the same with these old cahoot flexible loans).
But your mistake was to stop payments in the meantime.

I would suggest restarting payments whilst you continue with a proper complaint regarding the interest rate rise - in writing by post preferably rather than by email. I believe there are some who have taken this to the FOS (after following the correct complaints procedure with santander first of course).

You might want to do a search for cahoot flexible loan as there are other threads from people also making complaints.

annie_1608

Hi Tixy

Thanks for getting back to me.

I have complained to Santander already (via email) and received a refund of the difference in interest (like other people have received on the Cahoot refunds thread). They sent me a cheque but this was not what I wanted, I would rather them have lowered the interest rate to something more affordable but they wouldn't. I stated this to them but it fell on deaf ears.

Maybe I should take up my complaint properly in writing as you say and see if that helps.

happy_bunny_2

This is the current interest complaint thread:
https://forums.moneysavingexpert.com/discussion/3578349

How much did you get back? How long ago? Did you ask them to lower the rate in your complaint as well as refund interest?