Simple Procedure from Shoosmiths on behalf of Cabot

[Zoroaster9]

I'm in need of some advice regarding how to respond to the Simple Procedure Timetable. The last date of response is tomorrow, 09/03/2020.

In 2017 I defaulted on a Halifax credit card, following a period of poor health forcing me out of work.
The total amount is £4600.
I do not dispute the claim or deny that the debt is valid. I am, however, unable to repay it.
No payments have been made to the account since the default, and I have not responded to any 3rd parties who claim to have bought my debt.
I currently have no income, no savings, and no mortgage. I am financially reliant on my family for support.
I have recently become a student, and expect to be in full-time study for several years.

The only contact I have had with Cabot is last week when I created an account on their website. My intention had been to make a settlement offer. They forwarded me to Shoosmiths, saying that they were no longer dealing with this account. I then called Shoosmiths, who asked me a lot of personal questions. I answered them honestly. I made them a settlement offer of £600.

I have yet to have any response regarding this offer, Cabot told me it can take up to 2 weeks to get a response.


I am able to respond online to the Simple Procedure online, and I plan to do that this evening.
When I attempted to respond, one of the first questions asks whether I want to admit the claim(and ask for time to pay), or whether I want to dispute the claim.

Any advice on how I should proceed would be massively appreciated.

[Amethyst]

It is quite a recent default ( 2/3years) so it is likely to be valid.

Any idea when you opened the account ? Is it an old account you took many years before it got too much to manage or is it quite recent ( say under 5 years )?

Have you sent a CCA request to Cabot ( asking for a copy of the agreement ? **https://legalbeagles.info/library/gu...etter-example/

Any other queries /disputes over the debt ?

If you enter an admission and offer to make payments you will have a Decree against you but the court should set the amount you repay at an affordable installment rate.

If you dispute the debt then you can say so and get a CCA request sent off -and ask for any other documents between now and a court date ( and see if they accept the offer in the meantime )

As they are at court already it is unlikely they'd accept anything much under the total owed, but you may be able to negotiate £600 cash now then something like £100 a month to try keep it from going to a decree.

[Zoroaster9]

Thank you for your reply, that is very helpful.

The credit agreement is from November 2015, and the default January 2017.

I have not sent a CCA request to Cabot.

If I may ask, how can the court set an affordable installment rate if I have no income?

What are the consequences of disputing the claim?* I need to give a written submission along with the admission, I don't deny that I did borrow the sum they applied for, I can't imagine what reason I could possibly give.

[ploddertom]

"If I may ask, how can the court set an affordable installment rate if I have no income?"

Minimum payment unless you can show otherwise is usually about £5 per week.

[Zoroaster9]

Thank you, to both of you, for taking the time to read my plea for help. Your advice really helped.

For completion, I would like to update my progress this morning.

The total sum being chased was £4950.

My offer of £600 was rejected with no counter-offer made. (I was expecting the rejection, but disappointed that they didn't enter negotiation).

As today was the last day of response before a court decree would be applied for, the priority for me was to stop this from happening. After discussions with the solicitor I was quoted the sum of £4200 that would be accepted as partial settlement.

I paid the sum requested to stop the court action.


I don't know if anyone can provide advice - do I still need to respond to the court papers, admitting the claim and informing them we reached a settlement?

[ploddertom]

The system in Scotland is different to us down here. Is there nothing on the Form to designate whether you have paid in full or in part? Will their solicitor not do this? Otherwise ring the Court and see if they will help with advice.

[KingUnemployed]

I thought you were now a student and could only pay £600 but then ...I paid the sum requested to stop the court action £4200

I would say pay £5 a month and let them hassle you for a few years until they give you a settlement offer

Or if you are now a genuine student (you have a student loan which is income and lights up any debt collectors eyes) I would have said explore declaring yourself bankrupt but clearly you have £4,200*

Ask for a receipt that states paid as full and final settlement otherwise for them to give an immediate refund. Anything less then them words you could possibly be still taken to court for the total sum, now or in the next couple of decades if they make a token payment every 6 years on your behalf without telling you - this is a forum for Cabot. Greed!