Cahoot Flexible Loan no longer available (from 4Q 2006) (cahoot.co.uk Flexible Loan)

Member Name: jameskev

Product:	cahoot.co.uk Flexible Loan
Date:	13/12/06 (623 review reads)
Rating:

Advantages: Now - none

Disadvantages: Extortionate increase in APR for existing customers

From 4Q 2006, Cahoot are no longer offering the 'Flexible Loan' to new customers. Further, they have dropped a bombshell on existing customers by pushing up the interest rate out of all proportion to the increase in the Bank of England base lending rate. In November 2006 the interest charged on my loan was 9.1% APR. This increased, on 01 December, to 9.4% APR (fair enough), but with effect 14 December 2006 the APR has increased to 14.9%!!! At the same time Cahoot are offering alternative Fixed Rate loans, which are available only through their parent company Abbey. The policy clearly seems to be to persuade existing Cahoot customers to transfer their loans to Abbey - I can think of no other justification for this ridiculous and extortionate increase in APR. Fortunately I had very little money outstanding on my loan and was in a position to clear the balance before the 14th December 2006. I expect that many thousands of other Cahoot customers will not be so fortunate.

Summary: A good product gone bad