Santander are now refunding interest payments on Cahoot flexible loan's

1959698100101197

Comments

  • kelly_dp
    kelly_dp Posts: 8 Forumite
    Most definitely a stream of rejection letters going out - i received mine today so will be posting my FOS letter this evening. I don't know how they justify some 'goodwill' gestures to some customers but not to others!! I think you're right that this site should most definitely be looking closer at Santander on this issue
  • Logman63
    Logman63 Posts: 8 Forumite
    Hi People!
    Well, it's become clear that Santander have drawn the wagons round on this one now, so be prepared for a bit of a slog to get your money back. Just remember though....it's your money that was misappropriated in the first place by the imposition of unfairly high interest rates, irrespective of what Santander claim...it wasn't fair and they shouldn't have done it!

    None of us are 'on the make' with this - I think we all just what what we're entitled to and I don't see why Santander should have any kind of problem with that!

    Anyway, like a lot of you, I'm now about to draft my letter to FOS and I'll wait and see what happens next.

    In my experience (I've had a run in with another bank recently too - long story, but similar theme!) FOS are very fair and take their time to get things exactly right, whatever the outcome. I'm prepared to wait now...nothing to lose and everything to gain really!

    Keep the home fires burning!!

    :EasterBun
  • tlh858
    tlh858 Posts: 217 Forumite
    Timescale of my complaint for info:

    Email sent 18 January
    Response by email 23 January asking for some extra information
    Replied by email 23 January with the information requested.
    Letter dated 1 February received by post - standard acknowledgement of complaint
    Rejection letter dated 31 March received by post today - apparently identical to those described above.

    Therefore seems they have done absolutely nothing for 2+ months, and then just sent a standard template letter.

    As a second issue, I haven't received a statement for the account for over a year.
  • I'm a newbie and not too sure I've posted correctly here!

    I have today received the standard rejection letter from Santander. Am I missing something here as they say "I was advised it may be possible to move onto another product with Santander that may have offered better rates and some people took this offer as they were willing to lose the flexibility provided by Cahoot" . I was never offered anything else though I call them to ask if I could and was told no!

    Does anyone know if the key principle the FOS may be looking at is the withdrawal of the flexibilty and imposition of a higher rate being unfair. If this had been a credit card I see that I would have had the option to freeze the account at existing rates in response to rate jacking.

    Finally, is it worth me going back to Santander or should I go straight to FOS?

    many thanks
  • Spentup12 wrote: »
    Am I missing something here as they say "I was advised it may be possible to move onto another product with Santander that may have offered better rates and some people took this offer as they were willing to lose the flexibility provided by Cahoot" . I was never offered anything else though I call them to ask if I could and was told no!


    Finally, is it worth me going back to Santander or should I go straight to FOS?

    Spentup12, that is exactly the same experience I have had with them. I was never offered any alternative product at any stage, and when I enquired about changing it, they flatly refused.

    IMHO, if you've had the standard rejection letter, go directly to the FOS, and get your complaint raised. That seems to be the next step in the process.
  • tlh858
    tlh858 Posts: 217 Forumite
    Some other points regarding the standard rejection letter which most people apparently have received - quotes are from the rejection letter.
    'The Cahoot loan you chose was a flexi-loan'
    Yes, it WAS flexible, but it isn't any more, all that can be done is to repay.
    'Regrettably, at the time we felt it necessary to increase the interest rates on the Cahoot flexi-loan to ensure the product, with the flexibility it offered to customers, could continue to be offered.'
    But - the product is no longer available, and neither is the flexibility.

    Getting another loan - not particularly likely either, as when applying for a loan, existing credit is considered as something you will still have if you get the new loan. Applying for a new loan when you already have a substantial loan outstanding is not likely to result in success.

    Anyone with one of these loans who hasn't looked at their credit report recently might be surprised to see what is on there. The Cahoot/Santander loan shows as 'Budget/Revolving Account' with a credit limit far higher than the outstanding balance, and monthly payments which will continue for 999 months- yes, that's more than 83 years.
    Even ignoring the obviously wrong 999 months part, it still implies there is a substantial amount of available yet unused credit.
    Imagine the detrimental effect that will have when applying for any new loan, credit card or anything else?
  • kenny_straw
    kenny_straw Posts: 50 Forumite
    oracleman wrote: »
    Is that 6months for the FOS to decide on your claim, or 6 months for the FOS to reach agreement with Santy on what to do with the whole mess

    ..think she was just talking about mine oracleman...the Lady I spoke to either pretended she had'nt heard of this before or hadnt heard of it...I was expecting them to be fully aware of this complaint...but maybe she just wasnt letting on...

    Like others have mentioned here, the bit on the rejection letter about being offered alternative products is rubbish...and it seems I'm not the only one who had not been getting statements either. With the lenght of time they sat on these claims you'd think they would have came up with something more solid.
  • Jasmine12
    Jasmine12 Posts: 5 Forumite
    Just had standard rejection letter, my letter didn't have the paragraph that others seem to have about offering alternative options

    "At the same time that we did this, we also advised that it may be possible for you to move on to another product with Santander (Abbey at the time) which may have offered better rates and this could have been done without penalty. Some people did choose to accept this offer, perhaps because they were willing to lose the flexibility provided by the Cahoot flexi-loan for a lower interest rate."
  • Cell
    Cell Posts: 580
    Name Dropper First Post First Anniversary Combo Breaker
    Forumite
    Well I still haven't received my rejection letter though those who complained afterwards have had their predicted outcome. No doubt it'll turn up...eventually!

    I agree entirely that I was not advised that I could apply for a different loan product when Santander took the accounts over.
  • Cell
    Cell Posts: 580
    Name Dropper First Post First Anniversary Combo Breaker
    Forumite
    Jasmine12 wrote: »
    Just had standard rejection letter, my letter didn't have the paragraph that others seem to have about offering alternative options

    "At the same time that we did this, we also advised that it may be possible for you to move on to another product with Santander (Abbey at the time) which may have offered better rates and this could have been done without penalty. Some people did choose to accept this offer, perhaps because they were willing to lose the flexibility provided by the Cahoot flexi-loan for a lower interest rate."

    What's this claptrap? What possible penalty could have been imposed, given that it was a flexible product? As they are quick to point out for a long time it was a flexible loan. Pay what you want, borrow what you want, within the account limits and conditions.

    How could they have penalised anyone for taking out a new loan at a lower rate to pay off an account where you could pay anything from the minimum to the full balance at any time - WITHOUT PENALTY?

    Fishier than Grimsby Docks.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards