Cahoot flexi loan - no statutory interest?

sammyjammy

My sister has received a PPI refund on a Cahoot flexi loan she had, in the letter they state that statutory interest is not due, wording below:


"On a rolling line of credit, 8% out of pocket interest is only paid if the loan would have had a credit balance if the PPI had not been applied, therefore 8% out of pocket interest has not been offered. "

I've seen several other flexi loan successes on the forum and nobody says anything about not getting the statutory interest, should she take it further?

I note the letter says in full and final settlement but they've given her no option to agree or disagree with that, they just paid the money into her bank account.

Nasqueron

If you weren't paid by the FSCS I'd speak to the FOS about this

http://www.financial-ombudsman.org.uk/publications/technical_notes/ppi/redress.html#compensation

sammyjammy

The payment was direct from Santander who are dealing with Cahoot loans. When you say speak to them do you mean raise a complaint or just query it? I would tell her to go back to Santander and query the lack of interest but not sure what she would put! A search doesn't bring up anything about cases where interest wouldn't be due.

Nasqueron

I'd just ring the FOS and ask for advice, unlikely that Santander are going to change their minds after giving you the payment

sammyjammy

Thanks Nasqueron for your advice, I rang the ombudsman as you suggested and they informed me that it was correct, that in the case of a flexible loan the statutory interest is only due if the lack of PPI would have put the account in credit. Makes me sense to me but happy that the matter is clear.

SAm