Cabot claiming "Failed Agreement" - but I've not missed a payment!

[scottmoran]

I agreed a payment plan with Cabot quite sometime ago for £5 per month.

I've kept this payment up and have all the necessary receipts, etc. I was surprised when I received a letter from them last week with the heading "Failed Arrangement". It goes on to say:


"We previously agreed an arrangement to clear the arrears on your account or to set up an alternative repayment arrangement to clear the balance on your account. We note from reviewing your account that you have failed to keep to the arrangement as agreed.

The arrangement has now been cancelled and it is important that you contact us immediately to discuss the options available to you to clear the arrears on your account. If you do not do contact us, you may be in breach of the terms of your agreement which may lead to termination and details being registered with the Credit Reference Bureau of your default. This may ultimately lead to you having difficulties obtaining credit in future."


I've always responded to their letters promptly, so am somewhat perplexed at this latest correspondence. The only time I didn't respond was to a letter last July, when they wrote offering a "solution" by me paying £5,366.31 to clear the debt. They concluded the letter with "if you would like to take us up on our offer then please call...", it was my understanding that a response wasn't mandatory. So don't know if this has provoked their latest letter?

Anyway, I have no idea what to do now, I guess I should keep up the payments even though they've cancelled the arrangement? I read on the CAB website that "putting pressure on you to pay all the money off, or in larger installments when you can't afford to" counts as harassment, which I assume is the case here?

Should I go "all guns blazing"or tread carefully with them?

Any help would be very much appreciated.

Scott.

[bluebottle]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Hi Scott and welcome to Legal Beagles.

Cabot are not exactly known for being compliant with the law. I would suggest the only communication you make is by letter, telling them to check their records thoroughly and properly and provide you with evidence you have not maintained payments. As long as you have proof that payments have and are still being made, Cabot can go swivel. Any further hassle from these numpties, come back onto this thread and we will see what further help you require.

[scottmoran]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Thank you Bluebottle, I really appreciate your advice.

Are they allowed to cancel the agreement without giving me a reason?

Is it worth hassling them by asking for a "true copy" of the original loan agreement too?

[Kafka]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Even if you hadn't paid the £5 it only breaks a private arrangement with them, not an 'agreement' in the strict sense. The credit agreement must have been broken and terminated already for the account to have gone to them.

If you provide a timeline with the details of the history of the account there may be other action you can take. Normally an account that a DCA is trying to collect is deficient in their paperwork and the amount is inflated due to charges that have no legal basis. If you provide details we can advise. In the meantime, never speak to them on the phone and don't worry about Cabot.

[Kafka]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Is it worth hassling them by asking for a "true copy" of the original loan agreement too?

The absence of a credit agreement may be an option for action by you, but without full details of the account that isn't clear yet.

[scottmoran]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Thanks Kafka,

Cabot have been trying it on for about 7 years (I think) and when I worked full time I used to pay them most of my wages. Now my financial situation is much worse I can't pay them much. They have put on so much interest, it really is crazy.

[Kafka]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Cabot are chancers who will try anything on to get money,and they might have no real grounds for asking you for money at all. If you provide the full details we can see what is the best way to deal with them.

[scottmoran]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Do I have to send them my pay slips and bank statements, etc?

[FlamingParrot]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

The absence of a credit agreement may be an option for action by you, but without full details of the account that isn't clear yet.

There's no harm in sending a CCA request:

Dear Sirs,

Account/Ref No:

With reference to the above agreement, I would be grateful if you would send me a copy of this credit agreement and a full breakdown of the account including any interest or charges applied.

A signed true copy of the deed of assignment of the above referenced agreement that you allege exists.

I understand that under the Consumer Credit Act 1974 [sections 77-79], I am entitled to receive a copy of any credit agreement and a statement of account on request.

I enclose a payment of £1 which represents the fee payable under the Consumer Credit Act 1974, and believe a copy of any credit agreement, along with a statement of account, should be supplied within 12 working days.

I understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account under these sections of the Act.

I look forward to hearing from you.

Yours faithfully

Your name.

The above should be sent recorded delivery, with a PO for £1 and signed digitally (using a computer font as opposed to your real signature). They have 14 days to respond, which they won't be able to do, DCAs don't get any paperwork with the debts they purchase, they'll have to go back to the OC who may or may not have it.

Cabot have been trying it on for about 7 years (I think) and when I worked full time I used to pay them most of my wages. Now my financial situation is much worse I can't pay them much. They have put on so much interest, it really is crazy.

In this case, they probably won't be able to supply anything. :grin:

[FlamingParrot]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Do I have to send them my pay slips and bank statements, etc?

ABSOLUTELY NOT! :nono: :nono: :nono:

Only a judge has the right to ask for such information!

Send them the CCA request instead! :grin:

[CleverClogs]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Do I have to send them my pay slips and bank statements, etc?

And also evidence of your blood group and tissue type, in case they demand their pound of your flesh?

No, no, no and no, respectively.

[scottmoran]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Thank you all so much for all your help and support. I can't tell you how much I appreciate it.

This started out with a Barclaycard, which they then sold on to Cabot. Since they took over they've crippled me with interest and until fairly recently, harassing telephone calls.

I've drafted the letter below, which I'd appreciate any feedback on please. I'm annoyed they've canceled the agreement and accused me of failed payment, as this simply isn't true:


"Dear Mr xxxxxx,

I was extremely distressed to read your latest letter (dated 22nd February 2013), in which you claimed that I've failed to keep the arrangement we agreed. This is simply not the case - I have paid you £5 each month as agreed and have full records and receipts to prove it.
I've always responded to your letters promptly, so am somewhat perplexed at your suggestion of any breach on my part. Since I haven't missed a payment, I've been trying to fathom how you could possibly have an issue. The only time I've not responded was to your letter last July, when you wrote offering a "solution" by me paying £5,000 to clear the debt. Since my circumstances hadn't changed, I was unable to take you up on this. And since you concluded the letter with "if you would like to take us up on our offer then please call..." it was clear that a response wasn't mandatory.

Since I have kept our agreement I fail to see why you felt it necessary to cancel it. I will, however, continue to pay you £5 per month as this will, as you’ll appreciate, form part of my defence should a legal route be taken further down the road.

Since I am not in breach of our agreement, it is my belief that your letter (and the one dated 25th July 2012), constitute harassment, which I'm sure you are aware is a criminal offence.

I'd like you to provide me with a true copy of the original credit agreement, containing of course the terms and conditions, interest rate, etc. I understand that under the Consumer Credit Act 1974 [sections 77-79], I am entitled to receive a copy of any credit agreement and a statement of account on request.
I enclose a payment of £1 which represents the fee payable under the Consumer Credit Act 1974, and believe a copy of any credit agreement, along with a statement of account, should be supplied within 12 working days.

I understand that under the Consumer Credit Act 1974 creditors are unable to enforce an agreement if they fail to comply with the request for a copy of the agreement and statement of account under these sections of the Act.

If you would like to discuss this further, please do so only in writing as I want to keep careful records and share all correspondence with the CAB.

Yours sincerely,"

[bluebottle]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Can I suggest that, after CAB, you add "... OFT Credit Fitness Team and Trading Standards"? If that doesn't make them behave themselves, I don't know what will.

[scottmoran]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Thanks, Bluebottle - have added that to the letter and posted it. Will let you know what happens.

Many thanks again!

[alham]

Re: Cabot claiming "Failed Agreement" - but I've not missed a payment!

Excellent letter - right balance of humility and steel.