Cahoot was launched in June 2000, as the internet based banking brand of Abbey National plc.

[4] Prior to the takeover of parent bank Abbey National 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.

A 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 (for some 22%) had been 'frozen' and transferred to Santander at some point.

Before January 2010, Cahoot informed customers that their loan limits had been "reviewed" and gave 30 days' notice that the withdrawal service was to cease.