Advantages online access
Disadvantages poor customer service and unethical behaviour in relation to loans
I joined Cahoot a few years ago, set up a current account and loan for £4000.I have now closed my current account and I am in the final (painful) stages of paying off my loan.
I have closed my account for two reasons:-- firstly, I have found Cahoot's customer service provided to be of a very poor standard. Their responses to email queries are at best confusing and at worst, rude and unhelpful. Whenever I have a query, it almost always takes more than two tries by me to get a coherent response. eg: - I closed my current account and reduced my loan limit by £2k in August, two months ago. Cahoot have not updated my credit record to reflect this change and as I'm applying for a mortgage, I need my record to be up to date to get the best credit rating I can. I am now on my third attempt to resolve this very simple issue.[
- secondly, in my opinion they are basically loan sharks and have behaved unethically in relation to my loan account. I took out a loan with a really good rate, below 7%. 18 months ago the rate unexpectedly jumped to 14%, two months ago the rate jumped to 19%. I am not a bad customer, have paid the loan installments on time etc, it's just aweful behaviour on the part of a major Uk bank and I really just want to get the loan paid off and get away from them asap.I think they are best avoided.
To clarify, the product is a flexible loan and the amount borrowed can be increased easily. This is a really useful aspect product, although not a facility I have used and I certainly wouldn't have taken this product if I had known the rate would more than triple in such a short period.
Update - Thank you Claiiiree for your comments, The dramatic interest rate increases pre-date the credit crunch and haven't been linked to any difficulties in the financial markets.
The following BBC article captures customer reactions quite well if you are interested in finding out more:http://news.bbc.co.uk/1/hi/programmes/moneybox/6164611.stm
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