You are here: Home - Credit Cards & Loans -

Cahoot raises its flexible loans rate

0
Written by:
11/12/2006

Cahoot, the online banking operation of Abbey, has angered its loan customers by raising the interest rate on its flexible loans from 9.4% to 14.9%, a rise of almost 60%. The rise is due to take effect from 19th December.

Observers have commented that the rise in interest rate could cause big problems for people already struggling with their debts. Although flexible loans allow people to pay off what they like each month, and consequently appeal to the self-employed, the interest rate can fluctuate.

Unsecured flexible loans are not covered by the regulator, the Financial Services Authority (FSA), but the Office of Fair Trading (OFT) has requested that any customers who feel the rise is unfair should make contact, outlining their grievance.

In response to the criticism, an Abbey spokesperson said that Cahoot had done nothing to contravene the terms and conditions of its flexible loans and that it was just bringing up its rates to match those of its competitors. It also wants unhappy customers to consider switching to alternative fixed rate loan directly from Abbey.

However, anyone switching from a Cahoot flexible loan to an Abbey fixed rate loan is not guaranteed another product, as even existing Cahoot customers will be credit-checked and possibly refused a fixed rate personal loan UK.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Farepak victims to protest

People who have lost their Christmas savings in the collapse of savings club Farepak are to hold a protest outside...

Close