Major bank to axe credit card for all customers in DAYS --[Reported by Umva mag]

A MAJOR bank is set to discontinue credit card services for all customers in a matter of days. Cahoot, a subsidiary of Santander, will stop offering credit card services for all customers next week. GettyThis means you will no longer be able to pay for goods or services in-store or online, and your card will not be accepted[/caption] Cahoot ceased offering new credit cards to customers back in 2006. However, over 1,000 existing customers are still using their credit cards today. Many more may still have a Cahoot card knocking around. All these credit cards will stop working from September 30. This means you will no longer be able to pay for goods or services in-store or online, and your card will not be accepted. A spokesperson told The Sun: “Following a review of our product range, we have made the decision to close the cahoot credit card account from September 30, 2024. “We have written to Cahoot credit card customers to outline the options available to them, including transferring to a Santander Everyday No Balance Transfer Fee Credit Card as a replacement.” It means that customers will need to find another credit card provider to continue to make purchases in this way. If you still have an outstanding balance on your card after this date, you can continue to make repayments as usual – there’s not time limit on repaying the debt. Once you’ve repaid your balance in full and it’s at £0, Cahoot will then close your account and write to you to confirm this. You won’t be forced to pay off your debt in full. The bank says that all repayment options will continue to be available to affected customers. Your statement will continue to show the minimum repayment amount required each month. You must pay the minimum payment on or before your payment due date. The minimum payment is the highest of: The full credit card balance if it is less than £5 Any arrears payable, plus the greater of 2.5% of the credit card balance or £5 Remember, if you only make the minimum payment, it will take longer and cost you more to clear your balance. SUBSCRIPTION WARNING IF you have an ongoing monthly subscription that you pay using your Cahoot credit card, you'll need to update your details now. From September 10, 2024 any requests for authorisation on your Cahoot Credit Card will be declined. You need to make alternative arrangements for future payments with each subscription provider or organisation before this date to ensure that services continue and any required payments are made. If you fail to do this and are paying a contract with a specified term, your missed payment could be reported to the credit reference agencies and may reduce your credit score. Martyn James, consumer rights expert, says: “If you’ve got a big debt on your credit card, you might be worried about paying off the bill now the Cahoot card is being withdrawn. “However, in situations like this, the business should allow you to keep paying off the debt by the minimum payment. “If you’re in financial difficulties, they should set up a payment plan at a rate you can afford – and not charge excessive interest.” Santander says that customers who actively use the Cahoot credit card can apply for a replacement credit card with Santander and complete a balance transfer. However, Cahoot will also allow customers to transfer their existing credit card debt onto a new credit card with a different bank. This means those who can’t afford to pay off their balance in full could transfer it to an interest-free balance transfer credit card. These cards allow customers to temporarily stop paying interest for up to 29 months for a small processing fee of 2-4%. If you want to pay your debt down completely, you should avoid spending extra money on these cards. With HSBC‘s market-leading offer, customers can stop paying interest for 29 months, with a 3.49% transfer fee. Those with less-perfect credit scores might be eligible for a 16-month Virgin Money card with a 3% transfer fee. Those with poor credit scores could be eligible for Fluid’s nine-month interest-free balance transfer card, which also charges a 3% transfer fee. HISTORY OF CAHOOT THE Cahoot brand was set up in 2000, becoming Abbey National's internet-only division. Santander retained the banking division when Abbey National was bought out by the Spanish banking giant in July 2004. In addition to credit cards, Cahoot provided current accounts but halted new account openings in February 2010. In June 2015, Cahoot stopped paying interest on current account balances. Further changes occurred in April 2020 when Cahoot withdrew the interest-free overdraft facility on its current accounts. The online-o

Sep 24, 2024 - 11:08

Major bank to axe credit card for all customers in DAYS --[Reported by Umva mag]

A MAJOR bank is set to discontinue credit card services for all customers in a matter of days.

Cahoot, a subsidiary of Santander, will stop offering credit card services for all customers next week.

a pile of credit cards including a mastercard , american express , and visa .

This means you will no longer be able to pay for goods or services in-store or online, and your card will not be accepted[/caption]

Cahoot ceased offering new credit cards to customers back in 2006.

However, over 1,000 existing customers are still using their credit cards today.

Many more may still have a Cahoot card knocking around.

All these credit cards will stop working from September 30.

This means you will no longer be able to pay for goods or services in-store or online, and your card will not be accepted.

A spokesperson told The Sun: “Following a review of our product range, we have made the decision to close the cahoot credit card account from September 30, 2024.

“We have written to Cahoot credit card customers to outline the options available to them, including transferring to a Santander Everyday No Balance Transfer Fee Credit Card as a replacement.”

It means that customers will need to find another credit card provider to continue to make purchases in this way.

If you still have an outstanding balance on your card after this date, you can continue to make repayments as usual – there’s not time limit on repaying the debt.

Once you’ve repaid your balance in full and it’s at £0, Cahoot will then close your account and write to you to confirm this.

You won’t be forced to pay off your debt in full.

The bank says that all repayment options will continue to be available to affected customers.

Your statement will continue to show the minimum repayment amount required each month.

You must pay the minimum payment on or before your payment due date.

The minimum payment is the highest of:

The full credit card balance if it is less than £5
Any arrears payable, plus the greater of 2.5% of the credit card balance or £5

Remember, if you only make the minimum payment, it will take longer and cost you more to clear your balance.

SUBSCRIPTION WARNING

IF you have an ongoing monthly subscription that you pay using your Cahoot credit card, you'll need to update your details now.

From September 10, 2024 any requests for authorisation on your Cahoot Credit Card will be declined.

You need to make alternative arrangements for future payments with each subscription provider or organisation before this date to ensure that services continue and any required payments are made.

If you fail to do this and are paying a contract with a specified term, your missed payment could be reported to the credit reference agencies and may reduce your credit score.

Martyn James, consumer rights expert, says: “If you’ve got a big debt on your credit card, you might be worried about paying off the bill now the Cahoot card is being withdrawn.

“However, in situations like this, the business should allow you to keep paying off the debt by the minimum payment.

“If you’re in financial difficulties, they should set up a payment plan at a rate you can afford – and not charge excessive interest.”

Santander says that customers who actively use the Cahoot credit card can apply for a replacement credit card with Santander and complete a balance transfer.

However, Cahoot will also allow customers to transfer their existing credit card debt onto a new credit card with a different bank.

This means those who can’t afford to pay off their balance in full could transfer it to an interest-free balance transfer credit card.

These cards allow customers to temporarily stop paying interest for up to 29 months for a small processing fee of 2-4%.

If you want to pay your debt down completely, you should avoid spending extra money on these cards.

With HSBC‘s market-leading offer, customers can stop paying interest for 29 months, with a 3.49% transfer fee.

Those with less-perfect credit scores might be eligible for a 16-month Virgin Money card with a 3% transfer fee.

Those with poor credit scores could be eligible for Fluid’s nine-month interest-free balance transfer card, which also charges a 3% transfer fee.

HISTORY OF CAHOOT

THE Cahoot brand was set up in 2000, becoming Abbey National's internet-only division.

Santander retained the banking division when Abbey National was bought out by the Spanish banking giant in July 2004.

In addition to credit cards, Cahoot provided current accounts but halted new account openings in February 2010.

In June 2015, Cahoot stopped paying interest on current account balances.

Further changes occurred in April 2020 when Cahoot withdrew the interest-free overdraft facility on its current accounts.

The online-only bank now specialises in offers savings accounts.

FIND THE BEST CREDIT CARD DEALS

You should always use an eligibility calculator before applying, that’s because every credit card application leaves a mark on your credit file and can affect your credit score.

To assess all the available cards, visit price comparison websites like MoneySavingExpert’s Cheap Credit Club or Compare the Market.

Once you run your details through an eligibility calculator and you’ve been shown that you’re likely to be accepted, make a formal application.

To do this, you will need to provide your name, address and email address as well as details of your income so a provider can assess your eligibility.

You will also need to provide details of how much money you want to transfer to the new card, but you can often do this after you have been accepted.

If your application is approved, you will need to transfer the balances within a set period, usually around 60 or 90 days.

Your old balance will then be cleared and you can start making interest-free repayments on your new card.

How to get free debt help

There are several groups which can help you with your problem debts for free.

Citizens Advice – 0800 144 8848 (England) / 0800 702 2020 (Wales)
StepChange – 0800138 1111
National Debtline – 0808 808 4000
Debt Advice Foundation – 0800 043 4050

You can also find information about Debt Management Plans (DMP) and Individual Voluntary Agreements (IVA) by visiting MoneyHelper.org.uk or Gov.UK.

Speak to one of these organisations – don’t be tempted to use a claims management firm.

They say they can write off lots of your debt in return for a large upfront fee.

But there are other options where you don’t need to pay.

The following news has been carefully analyzed, curated, and compiled by Umva Mag from a diverse range of people, sources, and reputable platforms. Our editorial team strives to ensure the accuracy and reliability of the information we provide. By combining insights from multiple perspectives, we aim to offer a well-rounded and comprehensive understanding of the events and stories that shape our world. Umva Mag values transparency, accountability, and journalistic integrity, ensuring that each piece of content is delivered with the utmost professionalism.