Can Cabot do this?

[barney47]

Hi everyone i'm new to this forum!

Cabot bought two accounts way back in 2005 one is peoples bank card and the other a Barclaycard, i owe around £11500 over both accounts, i pay £110 for these monthly.

Last week Cabot phoned and my wife answered, they tried to persuade her to take a call from a third party to arrange for me to remortgage my house to release the equity to pay Cabot!!!

My wife declined the call only to be told they would call again in 6 months to see if we had reconsidered and would remortgage.

I thought this type of thing where DCA's encourage you to get into more debt to pay them was against OFT guidlines.....correct me if i'm wrong.

How low are these companies prepared to go???!!!!

[Caspar]

Re: Can Cabot do this?

I assume they've frozen interest on these accounts. Why on earht would you wwant to take out a loan incurring interest so you pay more money in the long run to please a load a pr@ts?

[pompeyfaith]

Re: Can Cabot do this?

Last week Cabot phoned and my wife answered, they tried to persuade her to take a call from a third party to arrange for me to remortgage my house to release the equity to pay Cabot!!!

No you are not wrong indeed it is wrong to get consumers to take on more debt to clear another creditors borrowings.

You may have equity but asking you to increase your mortgage and thus create higher interest by virtue of the borrowing over a longer period is wrong and should be reported to the FSA and OFT

http://www.oft.gov.uk/shared_oft/bus...5F7C8410B4E79D

[Angry Cat]

Re: Can Cabot do this?

Hi everyone i'm new to this forum!

Cabot bought two accounts way back in 2005 one is peoples bank card and the other a Barclaycard, i owe around £11500 over both accounts, i pay £110 for these monthly.

Last week Cabot phoned and my wife answered, they tried to persuade her to take a call from a third party to arrange for me to remortgage my house to release the equity to pay Cabot!!!

My wife declined the call only to be told they would call again in 6 months to see if we had reconsidered and would remortgage.

I thought this type of thing where DCA's encourage you to get into more debt to pay them was against OFT guidlines.....correct me if i'm wrong.

How low are these companies prepared to go???!!!!

Yes, attempting to pursuade a debtor to take out more borrowings (especially on a priority debt) to pay an existing debt, is against the OFT Guidelines on Debt Collection.

Pity, that you did not record the telephone conversation.

Report, the matter to the Cabot compliance officer.

And, report the matter to consumer direct and the OFT.

These DCA's need to be brought to heel:beagle:

NEVER SPEAK TO A DCA ON THE TELEPHONE.

[barney47]

Re: Can Cabot do this?

OK i have reported the matter as a complaint to Cabot and to consumer direct, Cabot have replied saying they are investigating the matter and i should hear back with the findings in 20 days, Consumer Direct replied saying they will investigate it and have also passed it on to Trading Standards and the OFT!!!!!!

We will see what happens!!

[Crispybacon]

Re: Can Cabot do this?

This also stinks on another matter.......

I wonder how much of a '3rd party' this remortgaging company were?

I also wonder whether Cabot get commission for any 'referral' or 'sale' that is made through their advisors.

I certainly can't see any DCA suggesting a '3rd party' unless it was in their interests to do so, especially when they already have a payment arrangement in place.

Definately against OFT guidelines and I'm chuffed to bits to see that you've made a formal complaint and to OFT and TS too. I wish more people would do the same so that these authorities started to understand that these practices are prevalent not an exception.

I hope Cabot get a spanking.

Crispy

[andrew1]

Re: Can Cabot do this?

This also stinks on another matter.......

I wonder how much of a '3rd party' this remortgaging company were?

I also wonder whether Cabot get commission for any 'referral' or 'sale' that is made through their advisors.

I certainly can't see any DCA suggesting a '3rd party' unless it was in their interests to do so, especially when they already have a payment arrangement in place.

Definately against OFT guidelines and I'm chuffed to bits to see that you've made a formal complaint and to OFT and TS too. I wish more people would do the same so that these authorities started to understand that these practices are prevalent not an exception.

I hope Cabot get a spanking.

Crispy

I hope Cabot get a spanking.

How does £19 million loss in the first year the Cabot Fan Club energised people to complain grab you and £26 million losses in the second year - how's that for a spanking? :lol:

Sure, as many people as possible should complain to the OFT as we did way back in 2007 as Ken Maynard and his merry men still haven't learned - have the PT?