Email from CABOT saying 'Legal action will begin in 14 days'. What do I need to do?

[EM_C80]

Hi everyone

I am new here and hoping I may be able to get some help regarding an email I have received from CABOT today?

I defaulted on an Aqua credit card last year (took card out in 2020) as I have been unwell with a new automimmune condition, which has left me bed bound 70% of the time and a recluse for the rest. I lost my self-employed job.

CABOT have been trying to call, txt and sent letters since this year but I have buried my head in the sand due to being unwell.

My last hard copy letter from CABOT was on 4th June 2023 stating:


'Your overdue debt requires action

You've been selected for legal action to commence by our solicitors. This is because you are not making payments to your account.

It is important you understand what the consequences are of not taking action now. If you continue to ignore this your account will be passed to our solicitors. Our Solicitors will then look to obtain a Count Court Judgement (CCJ).

.....'


Then, today (4th July) I have received an email from CABOT stating:

'(my name), legal action will begin in 14 days'


The debt is for an Aqua credit card for the amount of £2800.00.

I have never spoken to them and don't know how best to approach it as I am now on a very small amount of benefits and really stressed and upset as I just don't know what I am going to do.

Please may I get some advice on what I should do now?

Thank you

[R0b]

Hi,

Based on what you have posted, I suspect you have very limited options in terms of defending this. You may be able to argue that Aqua were irresponsible in lending you the money if they knew you couldn't afford to make the repayments but that's not what you're suggesting so I assume there no merit in that, plus you would need to prove with evidence such as your statements and bills that the credit limit or giving you the account would have led a reasonable lender to think you wouldn't be able to afford the repayments - no easy task.

The only other sensible solution I would suggest is to engage them and see if you can come to a settlement or repayment plan. The alternative could be much worse in that Cabot will issue legal proceedings, you lose your case and then you have a County Court Judgment on your file for the next 6 years. The knock-on effect is you having higher mortgage rates, unable to find a tenancy, credit card limits are reduced or closed down and potentially further debt being called in by the lender etc.

The email Cabot have sent you yesterday is not compliant with the pre-action protocols for debt claims (the protocols are here https://www.justice.gov.uk/courts/pr...s/debt-pap.pdf). The protocols are set out here and they are required before they can issue proceedings and if they don't comply, you can ask the court to strike out or stay proceedings pending their compliance by making an application.

You may be able to hold them off by sending them an email stating they are not complying with the protocols, and you reserve the right to make an application to the court to strike out proceedings for non-compliance but nevertheless you are willing to engage and try to reach a settlement but you will need to explain that you have limited means.

You could complete Annex 2 which is the statement of finances as shown in the protocols and send that to Cabot and start from there. Otherwise you can run the risk and try to defend this but unless you have a trump card, you will be delaying the inevitable just with more costs added on.

[echat11]

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