Hello. HSBC sold debt to Cabot, need advice please

[Austindp]

A quick note to say hello having just joined the website.

I've looked through a number of threads on various websites and the advice on here seems to be of the very best and (for me especially) in plain English.

I have an issue where HSBC sold my debt to Cabot Financial. It was for a business current account overdraft that remained unpaid after the company went into administration and has since been struck off from Companies House. It was a Limited company but I had signed as a guarantor for the overdraft facility.

Please advise the best area of the forum to post this issue so I may get some help.

Thank you.

[jaguarsuk]

So have they issued a claim? Or just writing to you wanting you to pay up and threatening court?

[jaguarsuk]

It was a Limited company but I had signed as a guarantor for the overdraft facility.

This is going to be key, whether HSBC have passed this to Cabot and/or retained it to be passed on.

I'd send HSBC a Subject Access Request Letter to see exactly what they have.

[pt2537]

A quick note to say hello having just joined the website.

I've looked through a number of threads on various websites and the advice on here seems to be of the very best and (for me especially) in plain English.

I have an issue where HSBC sold my debt to Cabot Financial. It was for a business current account overdraft that remained unpaid after the company went into administration and has since been struck off from Companies House. It was a Limited company but I had signed as a guarantor for the overdraft facility.

Please advise the best area of the forum to post this issue so I may get some help.

Thank you.

Do you happen to have a copy of the personal guarantee?

[Austindp]

Thanks Jaguarsuk.

I've had a few letters from Cabot threatening legal action and wanting me to pay.

this has been going on for some time now and previously I sent a CCA (?) to Cabot, which they eventually replied to saying they could not find the information requested but would still peruse.

unfortunately I then had a lot going in so dropped the ball and have done nothing. They've logged it as a default on my otherwise flawless credit file (which is the main annoyance as I'd like to apply for a mortgage in a year or 2) and have since ceased calling but did send a letter that I believe stated they were willing to discuss lowering the amount of I agreed to pay.

Thank you, I'll send an SAR letter to HSBC and now most of the issues preventing me from making this a priority have been dealt with I'd like to think I can now (with the help of the kind people on this forum) get this sorted and move on with my life.

[Austindp]

Thanks PT2537.

I very much doubt I have a copy of the paperwork. It would've been signed over 5 years ago and since then I've had major family bereavments, divorce, moved house 3 times, got married again and had twin babies.....so.....eeeekkk

[jaguarsuk]

I sent a CCA (?) to Cabot, which they eventually replied to saying they could not find the information requested but would still peruse.

The debt is therefore unenforceable and they could not file a claim, but even if they did without that information they would be on a hiding to nothing.

I'd bet they don't even know about the personal guarantee and the debt has been sold to them under the belief it's a personal account.

Personally I'd write to them to them to say the debt was for a company which has been dissolved at companies house, as it was it's own legal entity you are not personally liable, as such you won't be paying them, they should cease writing to you immediately and if they don't you may issue proceedings without further reference to them under the Protection from Harassment Act 1997 relying on case precedent of Porter v Price [2004]/Ferguson v British Gas [2009].

[Austindp]

The debt is therefore unenforceable and they could not file a claim, but even if they did without that information they would be on a hiding to nothing.

I'd bet they don't even know about the personal guarantee and the debt has been sold to them under the belief it's a personal account.

Personally I'd write to them to them to say the debt was for a company which has been dissolved at companies house, as it was it's own legal entity you are not personally liable, as such you won't be paying them, they should cease writing to you immediately and if they don't you may issue proceedings without further reference to them under the Protection from Harassment Act 1997 relying on case precedent of Porter v Price [2004]/Ferguson v British Gas [2009].

Thank you Jaguarsuk, that sounds awesome.

Do you know of anyone who might be able to help draft such a letter? I'm not too bad with these kind of things but always so nervous about putting something in a letter that can then come back to bite me.

I'm assuming if this is the case and (with wishful thinking) this all ends well that they would then have to remove the default on my personal credit file so that I can get back my faultless credit score that I have spent years building?

Thanks again

[jaguarsuk]

Thank you Jaguarsuk, that sounds awesome.

Do you know of anyone who might be able to help draft such a letter? I'm not too bad with these kind of things but always so nervous about putting something in a letter that can then come back to bite me.

I'm assuming if this is the case and (with wishful thinking) this all ends well that they would then have to remove the default on my personal credit file so that I can get back my faultless credit score that I have spent years building?

Thanks again

Do a draft and then post it here, we'll be able to have a look over it for you and then make any suggestions.

Yes, if they can't source that guarantee then you are not liable personally and they can't mark your credit file as such. Include in your letter where you say to stop writing to you "other than to confirm you have removed the default erroneously placed on my personal credit file by you relating to this alleged debt."

Going down this route is a good way of finding out whether they know about the guarantee whilst simultaneously denying you owe the debt from the off.

Lets hope when the SAR comes back from HSBC it shows they have disposed of it.

[Amethyst]

Similar situation here http://legalbeagles.info/forums/foru...in-trouble-now
just for ref

[Austindp]

Similar situation here http://legalbeagles.info/forums/foru...in-trouble-now
just for ref

Thank you.

It was actually this thread that made my mind up to join the forum and look for help here.

This persons situation is slightly different to mine, one of the issues being that I hold a personal business account with HSBC (although I rarely use it) and wonder if that has any impact on the issue here even though the debt is from the old Ltd company overdraft.

ALSO, the amount being chased is far less (just over £5k) and one of my biggest issues is the fact that they have lodged a default notice for this debt on my personal credit file, taking my credit score from 993 to low 500's, which means the mortgage I need I cannot get right now.

Any advice is gratefully received.

Thanks again.

[Amethyst]

The SAR is the first thing to do to find out exactly where you stand. If this is a Ltd company debt it shouldn't be on your credit file, only if there is a personal guarantee. Arrow have said they can't find the agreement so likely they know nothing about the origination of the debt, pointing out to them it's from a ltd company might get it off your credit file ( although that may only be temporary until they find the PG ) so if your main aim is to get it off your credit file, once you get the SAR back, and can evidence the debt is from the Ltd company ( have you not got any old statements to compare acc numbers etc? have Arrow given the original account number ? detailed what type of debt it was at all ? ) to get it taken off the credit file you could 'settle' it ..... not going to be a set on process though, so I'd see what the SAR brings up from HSBC and go from there.

[Austindp]

The SAR is the first thing to do to find out exactly where you stand. If this is a Ltd company debt it shouldn't be on your credit file, only if there is a personal guarantee. Arrow have said they can't find the agreement so likely they know nothing about the origination of the debt, pointing out to them it's from a ltd company might get it off your credit file ( although that may only be temporary until they find the PG ) so if your main aim is to get it off your credit file, once you get the SAR back, and can evidence the debt is from the Ltd company ( have you not got any old statements to compare acc numbers etc? have Arrow given the original account number ? detailed what type of debt it was at all ? ) to get it taken off the credit file you could 'settle' it ..... not going to be a set on process though, so I'd see what the SAR brings up from HSBC and go from there.

Thank you.

Pardon my ignorance. So, having previously sent a CCA to Cabot the next step is an SAR to HSBC?

I should have some old statements somewhere so can prove it was a business account debt for a Limited company. I guess the crux is down to the PG and if they don't have any record of this the debt should've dissolved along with the Ltd Co. Is that what the SAR is there to reveal?

Again, apologies for my ignorance this is all unchartered territory for me.

One step at a time and hopefully there will become light at the end if the tunnel.

appreciate your help.

[Amethyst]

Arrow have responded to the CCA request saying they can't find the documents, but intend to continue chasing you... and intend to continue reporting the debt as defaulted on your credit file. It seems they believe it is a simple consumer credit agreement debt ( like a personal overdraft / loan / c'card ) and have no further details. You of course don't want to be giving them details and be arguing it is a business debt until you know the full situation and can show it was a Ltd company overdraft debt that should not be being reported to the CRA's.

I guess the crux is down to the PG and if they don't have any record of this the debt should've dissolved along with the Ltd Co. Is that what the SAR is there to reveal?

indeed. It's just a little safer for you to see what info HSBC hold before challenging Arrow further. Have Arrow, during their comms about the CCA request or about the debt, indicated at all what they believe the original debt was for ( other than 'HSBC' ) ?

[Amethyst]

* sorry - Cabot, not Arrow ( need a coffee ! )