There have been several instances of security or operational failures with the website. The initial launch of the bank in 2000 resulted in the website crashing. One case in November 2004 was a security scare, in which it was revealed that customers' accounts could be accessed without going through security procedures, after an update to the online banking system. From 15 to 16 October 2008, the secure section of the Cahoot website became unavailable, due, according to Cahoot, to a power outage in Spain. Although the main page of the website operated normally, it proved impossible for customers to log in to access their savings, leaving them unable to access their accounts and carry out transactions. Call centre staff were also unable to carry out any transactions for customers. Customers were able to access their accounts again normally on 17 October 2008. Prior to the takeover of parent bank Abbey by Santander, Cahoot recovered from its launch and security issues to achieve over 600,000 accounts, and a significant share of the unsecured lending market in the United Kingdom. It was consistently rated in Consumers' Association and Guardian surveys in the top three best banks in the United Kingdom, for service and pricing. Initially led by Tim Murley, the role was taken over by Tim Sawyer in November 2002, who was succeeded by John Goddard in September 2005. Abbey was renamed under its parent's brand in January 2010, although Cahoot and other specialist brands of the bank were retained by Santander.
Services
Cahoot operates as a division of Santander UK, and shares Santander's banking licence and headquarters. Its business model involves a very small operational staff, with IT services initially in 2003 outsourced to IBM using their "Software on Demand" model. As of May 2013, Cahoot only offer savings accounts for new customers, but also provided credit cards and personal loans to new business until 2006. Cahoot also provided a "Webcard" facility which generated a one time card number for each online transaction, as a measure to combat card fraud. The feature was withdrawn in October 2009. The flexible loan service was discontinued in the second quarter of 2009 to 2010, and it was later learned that the product's high interest rate had been 'frozen' and transferred to Santander at some point. The flexible loan was designed as a credit facility, a bit like a credit card, to borrow and repay as necessary, offering attractive interest rates at first. New credit card business had ceased in 2006, although customers could continue using their credit card limits and available balances as normal. Cahoot also provided current accounts, though it withdrew these from new business in February 2010. Before January 2010, Cahoot informed customers that their loan limits had been "reviewed" and gave thirty days' notice that the withdraw service was disappearing. Cahoot has now discontinued all products being available to new customers. On 7 June 2015, Cahoot ceased to pay interest on current account balances. Its call centre operates on skeleton staffing, compared to most inbound call centres, and does not have specialised call centre staff advising on specific products; instead, staff are trained on a broad range of products. Cahoot introduced the Faster Payments Service on 1 January 2012, the latest date possible under Financial Services Authority regulations. On 6 April 2020, Cahoot officially withdrew the interest free overdraft facility on its current accounts.
