Cahoot to hike interest rates

TheRateTart.com criticises the move by Cahoot to hike interest rates for their flexible loans customers, and sees it as an opportunity for Cahoot customers to shake up their finances.

[ClickPress, Mon Dec 11 2006] The online bank Cahoot has given customers just 2 weeks notice of their intention to raise interest rates for their flexible loans customers by 50%. The announcement follows on from Cahoot's decision to withdraw from the personal loans and credit card market.

Chris Neiger, editor of www.TheRateTart.com says "Keeping people and systems in place to service fewer and fewer flexible loans customers is an expensive overhead for Cahoot. It's hardly surprising they want to close the book off as quickly as possible.

"But this needn't be bad news for Cahoot's customers. There are still plenty of great deals on the market. Northern Rock are offering a deal at 5.9% APR with no repayment penalties. And for smaller amounts, NatWest are offering a credit card with 0% on purchases for 9 months, and MBNA offer a 12 month 0% card - effectively a free loan. The secret is to review your financial products regularly and make sure you always have a competitive deal. After all, why should customers be loyal to their banks if the bank shows no loyalty to them".

Background

TheRateTart.com provides indepenent comparisons for loans, savings, bank accounts, mortgages, insurance, broadband and trading accounts as well as credit cards. The web-site also provides customers with free personalised reminders to tell them when deals are ending and it's time to review the marketplace. Without exception, the finance offers displayed on the website are sourced from FSA approved and regulated companies.

The term “Rate Tart” was first coined by banks to describe people who save money by moving debt around to take advantage of introductory credit card deals. The term was intended to pour scorn on people with little brand loyalty.

We see things differently. Rate Tarts are smart consumers who understand what products offer and how they work.

Contact Details for Chris Neiger:
eMail: editor@theratetart.com | Mobile: 07887 951 560

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