Bah! Cahoot flexi-loan shocker!

minibudgetgal

OMG! Have just done the snow ball thing, and researched what interest rates were on each of our three loans, and got the shock of my life when I found ot that Cahoot are charging us the same interest as a credit card for their flexi loan. When we took it out it was the best on the market! So the snowball thing doesnt get us anywhere as each of our three loans have the same APR. Flippin heck! Husband researching cheaper loans as I write. Been a bit naughty and have missed a few payments on CCs over the last twelve months, so hope we dont get declined
Just a question, can we sue the b**ggers? I am so cross! I have had the e mail updates over the last year, but to be honest have just kept my head in the sand regarding our loan status.
Am so pleased I found this site, otherwise would never have done the research and would prob be in same situation next year.
GRRRRRRRRRR

Fonz_2

Sue them for what exactly?

minibudgetgal

I suppose me being an idiot and not reading the flippin e mails properly! I feel such a doofus! Still, even more committed to getting the darn thing paid off asap. Seriously though,, when we took out the loan the APR was 6.5%, it's more than doubled.

melvis

I had a Cahoot Flexi Loan, started at 6.9%, went up to 8.5% a few years later then they told me it was rising to 14.9% but by that point I was taking my debts to CAB so luckily interest was then frozen. I've had loans with Egg, Natwest etc before and they never had interest rises for the term of the loan, never mind more that doubling the interest rate!

FrugalJo

I had the Cahoot experience, started at 6.5% way back in 2001 it was at 19.9% last month ! Managed to move it to Natwest at 8.9%. The biggest thing for me is the flexible nature of the damn thing, I was always dipping into it.
As for the emails I read them but had my financial beer goggles on and never really took it on board.
I also cancelled the PPI on it and am looking to reclaim - if they ever send the paperwork.
Hope you can move it elsewhere.

wendybird

Yep, we had this happen as well. Was the best on the market when we took it out, but then doubled within a few months. We switched to Northern Rock at 7.9% which was the best when we took it out. Just realised they have front loaded the interest though - which means we have yet to pay any of the actual balance! Grrrrrr.

keeperbear

minibudgetgal wrote: »

OMG! got the shock of my life when I found ot that Cahoot are charging us the same interest as a credit card for their flexi loan. When we took it out it was the best on the market!

Just a question, can we sue the b**ggers?

Cahoot's interest rate rises were well documented in the UK press last year. Even Martin was talking about it.

How can you sue them for your inability to adequately check your finances? Furthermore, missing a few credit card payments is not just "naughty" as you put it, since it lowers your ability to move your loan to a lower interest rate.
Sorry to be blunt, but blame yourself not your bank. Banks lend to make money, and will increase interest rates when they can.

minibudgetgal

Harsh words keeper bear, but so true. Have never budgted in my life and have only just got my head around the freedom it will give me. Lesson learned I can tell ya.

minibudgetgal

Shopped around and got a much better deal at HSBC. Since we have kept within our limits since getting the account 15 years ago, they have not taken too dim a view of a few late payments on other cards. We can make overpayments etc. Since looking into all these forums, we are on track to not only saving (I know......I have always spent all I earn and more) to finish off doing up our house, but should have paid back our debts using the snowball thing in about 26 months. Since last posting I have paid off the outstanding 322 quid on my debenhams card, and on March 13th will pay off 2k off a credit card. That only leaves the 15k loan with HSBC. I am shocked at how easy it is to overspend to be honest. But a bit pleased, that with planning and being more than careful (like really bloody tight!) I can clear it.
Thanks for your support

Seaxwyn

Well done minibudgetgal! You've turned the situation round now so stop beating yourself up about past folly. Good luck!

xgingerx

Hi I had a 9k cahoot flex loan, started at 8.9, then went to 14.9 and then 19.9

Anyway I couldnt afford it, so started paying token payments as in financial difficulty, they dafulted me, accepted small payments and froze interest so now everything i give them brings the debt down, with the help of the CCCS of course, mt credit is shot now but thats the last thing i want right now