Cahoot – an online subsidiary of Santander – will cancel its credit card services for every single customer from next week, but thousands still have active cards today
A major bank is set to axe credit card services for all of its customers in a matter of days – leaving thousands to look for another provider.
Cahoot, an online division of Santander, will cancel its credit card services for every single customer from next week. Back in 2006, Cahoot stopped offering new credit cards to customers, but there are still over 1,000 people with active credit cards today, The Sun reports.
Many others may still have a Cahoot card knocking around, and when the service stops working from September 30, they’ll no longer be able to use their cards to pay for goods or services in-store or online. It means thousands will need to look for a new credit card provider if they want to continue to making purchases of this nature.
Speaking about the change, a spokesperson for Cahoot said: “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.”
Anyone with an outstanding balance left on their cards after this date can continue to make repayments as usual. There won’t be a time limit on customers repaying their debts, and customers will also not be forced to pay off their debts in full.
Once any outstanding amounts have been covered, and your balance reaches £0, Cahoot will then close down your account and write to you confirming this. Cahoot says affected customers will continue to have all repayment options available to them.
Customers will receive statements showing them the minimum repayment amount needed each month. The minimum amount must be paid on or before the due date. The minimum payment will be the highest option between:
- 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
Choosing the minimum payment means it will take longer and cost more to clear your balance as interest is added to your outstanding bill. Santander says active Cahoot credit card users can apply for a replacement card with them and carry out a balance transfer.
Cahoot will also let customers shift their existing credit card debt onto a new card from a different bank. This means those unable to clear their balance in full could move it to an interest-free balance transfer credit card. These cards allow customers to stop their interest payments temporarily for up to 29 months, incurring a small processing fee of 2-4%.
If you’re aiming to completely pay off your debt, it’s best to refrain from additional spending on these cards. HSBC’s market-leading offer will let customers stop interest payments for 29 months – with a 3.49% transfer fee. Customers with poor credit scores may qualify for a 16-month Virgin Money card with a 3% transfer fee, or Fluid’s nine-month interest-free balance transfer card, which also comes with a 3% transfer fee.