Cahoot decides to re-write the Banking Code!!

[ladybird17]

I recently wrote to Cahoot regarding the fact that they informed me they were increasing my interest rate on the same day as it increased. Their T & C's clearly state they must give 7 days' PRIOR notice, and the Banking Code states "at least 30 days BEFORE" any changes. Cahoot has just e-mailed me to say they have not done anything wrong as their T & C's say "within" 7 days, and the Banking Code, apparently, says"within" 30 days.

Am I reading the Banking Code incorrectly then, or have they got a different one to me?

[org1uk]

I recently wrote to Cahoot regarding the fact that they informed me they were increasing my interest rate on the same day as it increased. Their T & C's clearly state they must give 7 days' PRIOR notice, and the Banking Code states "at least 30 days BEFORE" any changes. Cahoot has just e-mailed me to say they have not done anything wrong as their T & C's say "within" 7 days [wrong methinks!], and the Banking Code, apparently, says"within" 30 days.

Am I reading the Banking Code incorrectly then, or have they got a different one to me?

 

Hi Ladybird,

 

Do you have the specific references in the T & C's and Banking Code? I have had a look at the latest I could find on CAHOOT and the BANKING CODE web site. My reading of the both is very loose [surprise! surprise!] on requirement of prior notification of interest rates. See below:

 

CAHOOT T & C's

13.3 We may also change our interest rates and/or charges for any other reason that is valid. If we do so we will give you notice and you are free to close your cahoot account immediately without loss of interest but you must repay any overdraft, outstanding balance, loan, interest or charges outstanding on your cahoot account.

13.4 We will notify you in writing within 30 days of any change in interest rates. We will give you at least 30 days prior personal notice of any change in our day to day charges.

 

AMENDMENTS TO THE GUIDANCE ON SECTION 4.4 OF THE BANKING CODE, PUBLISHED 6 JULY 2006

 

Changes in interest rates

 

4.4We will keep you informed of changes in the interest rates on your accounts and will tell you about the ways we will do this.

 

The requirement to “keep you informed of changes in the interest rates on your accounts” will be fulfilled by either:

 

·telling customers personally within thirty days of the change (subject to the provisions for Savings Accounts below); or

·within three working days of the change, putting notices of our new rates in our branches, on our website and in the newspapers we usually use. To help customers compare rates more easily, our newspaper notices will show clearly the old and new rates.

 

 

Can you argue that receiving notice of interest change on the day of change can hardly

be considered as notice [see 13.3 above]?

 

 

Hope above helps some