smith v's Cahoot

[dsfit]

I have now taken them on, having been a cahoot customer since they commenced business. Charges over 6 years with both current account and credit card account amounting to £2033. I recieved the standard fob-off letter, started legal action and they have filed an acknowledgement of service, which gives them until the 21st May to enter a defence. I am determined and will see it through. What can I expect to happen next?

[gumbodave]

HI SMITH,

In my case (hanson v cahoot), they sent in a defence, which wasn't really too scary. They then offered me half the claim in the hope that I would settle, which I rejected, saying that I would be preapred to go to court. They then capitulated, saying that the claim amount (£833 in my case) was not enough to warrant them going to court.

I am not sure if they will deem your higher claim justification to turn up to court, though, from what I have read on these pages, it seems doubtful. Hang in there and see what happens.

Best of luck!
Dave

[dsfit]

They sent a lame defence, and offered me 50% to settle.

I have just emailed them a reply

--------------------

Thank you for your letter dated 17th May


I have carefully considered the contents of your letter on behalf of Abbey National plc. and have come to the conclusion that I must reject your offer of £1285.00 in full and final settlement. For your client to wish to retain 50% of a sum of money taken from my account, in effect 'my money' is wholly unacceptable. However, in light of the exceptional customer service that cahoot have offered me in the past, I would like to make an offer, without prejudice, for settlement of the case. I will accept the sum of £2330, as calculated by your client, plus £120 court fees. I am willing as a gesture of goodwill to waive the interest, which as you well know I am and will be fully entiled to should the case go before a judge. In addition I require an assurance that my acounts with Abbey National plc, trading as cahoot will not be closed.

Should your client decline this very reasonable offer, I will be filling in and returning the Allocation Questionnaire as soon as I receive it and have absolutely no qualms about taking the matter to Court for a judge to decide the outcome. For your information, I will not be seeking a 1 month postponement of further action so we may have more time to reach settlement.

You ask that I 'consider that it cannot be correct that our client cannot charge anything at all'. My case is based on the fact under law that the charges are a disproportionate penalty and therefore unenforceable as they are contrary to common law. Further, as a disproportionate penalty they are invalid under the Unfair (Contracts) Terms Act 1977 s.4 and under the Unfair Terms in Consumer Contracts Regulations 1999. Para.8 and sch.2(1)(e). In the event that the charges are not a penalty then they are unreasonable within the meaning of the Supply of Goods and Services Act 1982 s.15.

Should cahoot decide to bring their charges into line with OFT recommendations it would be welcomed. However I am not aware that cahoot have in fact published an amended menu of charges to reflect your view that they should at least charge something?

It would be interesting, for my information, if you could provide a true indication of Abbey's administrative expenses incurred as a result of me going over my overdraft limit. I realise an organisation of Abbey's standing would have analysed such costs and would appreciate it if you could furnish me with the details. As it stands this morning they still enforce penalties of up to £35 from their customers for the slightest 'transgression'. Given the automated nature of modern banking I'm sure you agree with the OFT that such sums are wholly unacceptable? Forgive me, I am sure that you are fully versed in this matter and you must understand the reluctance of banks to make a defence in court.

Given that this case does not set a legal precedent, the fact that I have offered your client a swift and painless means of avoiding the expense and embarassment of a court case, and the fact that I am waiving my claim to interest, I expect an answer by the close of business on Friday 19th May 2006.

Yours faithfully,

David Smith

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Let's see what happens???? Onwards and upwards!

[dsfit]

I WON!!!

They have agreed to pay me £2330! Which I'm more than happy with.

Thanks for all the advice on the website and from other forum users.

Keep at them people!!

[dinghy]

Originally Posted by dsfit

I WON!!!

They have agreed to pay me £2330! Which I'm more than happy with.

Thanks for all the advice on the website and from other forum users.

Keep at them people!!

Congrats

<to save a mods post>

Make sure you complete the survey... http://www.consumeractiongroup.co.uk/survey.php

[jayne67]

Congratulations!!
It may seem then, that if you are prepared to waiver the interest on court claims they might, just might consider paying up. Is this another feather in CAG's cap if this is this case? It is at least an option to consider, if you are willing to forfeit the interest.

[dsfit]

Originally Posted by jayne67

Congratulations!!
It may seem then, that if you are prepared to waiver the interest on court claims they might, just might consider paying up. Is this another feather in CAG's cap if this is this case? It is at least an option to consider, if you are willing to forfeit the interest.

I don't know what would have happened if I'd kept pursuing it but £2330 that I didn't have yesterday was good enough for me. Good luck.

[dinghy]

Originally Posted by jayne67

Congratulations!!
It may seem then, that if you are prepared to waiver the interest on court claims they might, just might consider paying up. Is this another feather in CAG's cap if this is this case? It is at least an option to consider, if you are willing to forfeit the interest.

However if you hold out for the interest due they will (IMO) pay that out too... If they didn't want to have to pay the interest they should have settled before you were forced into taking them to court to make them listen to you...

Obviously this does come with a slight risk that they will take it all the way to court, but I can't imagine that once they have made an offer of the full amount that they won't finally cave on the interest too...

[dinghy]

Apologies dsfit if I've cast any shadows on your success...

[dsfit]

Originally Posted by dinghy

Apologies dsfit if I've cast any shadows on your success...

No worries, Barclaycard and MBNA won't be getting off so lightly though!