Scotland - Cabot Debt Chasing Advice

[coolhandct]

How much is outstanding in total for the 3 loans together?

Hi

All in approx £29.5k

1 - 6.6
2 - 10.7
3 - 12.2

1 - They have accepted £25 per month
2 - They havent yet provided suitable CCA
3 - Current one they have rejected payment so far unless with Inhibition

[echat11]

Hi

All in approx £29.5k

1 - 6.6
2 - 10.7
3 - 12.2

1 - They have accepted £25 per month
2 - They havent yet provided suitable CCA
3 - Current one they have rejected payment so far unless with Inhibition

The best course might be to CCA Cabot for loans 2 (10.7 -'This loan was originally with ZOPA. What they have sent is headed "Your Zopa Loan Contract Summary"' - this does sound like nonsense and ridiculous) and 3 (12.2).

The thing is that you don't know what rates are going to be like going forward, they may be 'higher'.

If they put an Inhibition on file, you could add notes that a potential lender could see explaining the situation.

[coolhandct]

The best course might be to CCA Cabot for loans 2 (10.7 -'This loan was originally with ZOPA. What they have sent is headed "Your Zopa Loan Contract Summary"' - this does sound like nonsense and ridiculous) and 3 (12.2).

The thing is that you don't know what rates are going to be like going forward, they may be 'higher'.

If they put an Inhibition on file, you could add notes that a potential lender could see explaining the situation.

Hi

There may be a bit of confusion:

Loan 1 - £6.6k - They have provided suitable CCA and agreed for me to pay £25 per month at present.
Loan 2 - £10.7k - This is the Zopa loan - They didnt provide a suitable CCA so I sent a formal CCA request on 03/10/24 - They still havent supplied this, not sure why its taking so long.
Loan 3 - £12.2k - This was originally Sainsburys and they have provided correct CCA etc - Ive offered £25 then £50 per month but they are saying they would only accept on basis of Decree and Inhibition. This is the one Im looking for guidance on (They gave 14 days to reply which is up today.)

Im not entirely sure what this means - An inhibition is a not that prevents me selling or remortgaging property for 5 years and shows on Register of Inhibitions - Would the lender be aware of this, does anything show on credit file?, my issue with this is would it prevent me from negotiating a better mortgage deal with same lender when fixed rate is up in 3 years time?

As you say if it does then I dont know what the rates will be at this stage, if higher it could have massive effect on my ability to pay mortgage and ability to pay towards debt - they are effectively punishing themselves wheras I may be in a position to greatly reduce my mortgage which would give me more disposable income.

Am I allowed to ask how much they paid to buy the debt.

If my credit is being ruined anyway would I not just be better off getting some kind of 3 year plan.

Im ill and stressed out my head to be honest and really not sure what to do next

[echat11]

Below I've just picked up the last line of your post.

Go to your lender (write to them), if this is the situation (Im ill and stressed out my head to be honest), see if they can 'do something now to reduce the rates', if they can, then you've preempted anything Cabot can do. If there's medical reports / information that you can provide the lender, that might help. Again the 'Cost of Living' crisis effects you.

https://www.fca.org.uk/news/press-re...gling-payments

[coolhandct]

Below I've just picked up the last line of your post.

Go to your lender (write to them), if this is the situation (Im ill and stressed out my head to be honest), see if they can 'do something now to reduce the rates', if they can, then you've preempted anything Cabot can do. If there's medical reports / information that you can provide the lender, that might help. Again the 'Cost of Living' crisis effects you.

https://www.fca.org.uk/news/press-re...gling-payments

Hi

Thanks again for email.

The stress is caused by the impact of Cabot/Nolans actions, not my mortgage.

As stated I can currently afford to make payments towards the debt but dont want any impact on my mortgage/credit file.

I was hopeful that they would accept monthly payments which I could make without any impact on mortgage or credit as I wanted to be able to renegotiate my mortgage with KMC in a couple of years when my credit would be clear.

If Nolans/Cabot insist on forcing Inhibition and/or decree then this will ruin that.

If its just an Inhibition does that actually go on credit file?

[echat11]

Hi

Thanks again for email.

The stress is caused by the impact of Cabot/Nolans actions, not my mortgage.

As stated I can currently afford to make payments towards the debt but dont want any impact on my mortgage/credit file.

I was hopeful that they would accept monthly payments which I could make without any impact on mortgage or credit as I wanted to be able to renegotiate my mortgage with KMC in a couple of years when my credit would be clear.

If Nolans/Cabot insist on forcing Inhibition and/or decree then this will ruin that.

If its just an Inhibition does that actually go on credit file?

Inhibitions in Scotland are recorded in the Register of Inhibitions in the Land Register of Scotland.

[echat11]

Im not entirely sure what this means - An inhibition is a not that prevents me selling or remortgaging property for 5 years and shows on Register of Inhibitions - Would the lender be aware of this, does anything show on credit file?, my issue with this is would it prevent me from negotiating a better mortgage deal with same lender when fixed rate is up in 3 years time?

I'm not sure if it does show on your Credit File, but I'm fairly sure a lender would want the full picture on your financial situation. The fact that you have an asset, but can't sell it, is important.

As you say if it does then I dont know what the rates will be at this stage, if higher it could have massive effect on my ability to pay mortgage and ability to pay towards debt - they are effectively punishing themselves wheras I may be in a position to greatly reduce my mortgage which would give me more disposable income.

That's why I think your current lender might work with you now.

Am I allowed to ask how much they paid to buy the debt.

They won't tell you, it's 'commercially sensitive'.

[coolhandct]

Im not entirely sure what this means - An inhibition is a not that prevents me selling or remortgaging property for 5 years and shows on Register of Inhibitions - Would the lender be aware of this, does anything show on credit file?, my issue with this is would it prevent me from negotiating a better mortgage deal with same lender when fixed rate is up in 3 years time?

I'm not sure if it does show on your Credit File, but I'm fairly sure a lender would want the full picture on your financial situation. The fact that you have an asset, but can't sell it, is important.

As you say if it does then I dont know what the rates will be at this stage, if higher it could have massive effect on my ability to pay mortgage and ability to pay towards debt - they are effectively punishing themselves wheras I may be in a position to greatly reduce my mortgage which would give me more disposable income.

That's why I think your current lender might work with you now.

Am I allowed to ask how much they paid to buy the debt.

They won't tell you, it's 'commercially sensitive'.

I appreciate comment re "Commercially Sensitive" however at the end of the day my loan was with Sainsbury's not Cabot, As Cabot purchased the debt then Sainsbury's no longer have any interest in it. As such surely its unfair for Cabot for example to purchase a debt of £12k by paying £3k then pursuing me for £12k.

Whilst I know this is the genuinely accepted practice however surely there is scope to challenge this.

I get that Cabot have to make something from this but there must be a legal argument that could be made against pursuing a sum that would give them a huge gain.

In any event if I approach my current lender as suggested can you suggest something I could write to Cabot to give me more time to consider options etc.

I was going to say I was ill last couple weeks (Which is true) , ask them to give me more time to take guidance and advice, tell them my mental health is suffering and also try to explain that by not allowing me to make monthly payments without this "Inhibition /Decree" would likely stop me having more disposable income when trying to renegotiate mortgage rate.......does that sound ok.

[echat11]

I appreciate comment re "Commercially Sensitive" however at the end of the day my loan was with Sainsbury's not Cabot, As Cabot purchased the debt then Sainsbury's no longer have any interest in it. As such surely its unfair for Cabot for example to purchase a debt of £12k by paying £3k then pursuing me for £12k.

Whilst I know this is the genuinely accepted practice however surely there is scope to challenge this.

I get that Cabot have to make something from this but there must be a legal argument that could be made against pursuing a sum that would give them a huge gain.

In any event if I approach my current lender as suggested can you suggest something I could write to Cabot to give me more time to consider options etc.

I was going to say I was ill last couple weeks (Which is true) , ask them to give me more time to take guidance and advice, tell them my mental health is suffering and also try to explain that by not allowing me to make monthly payments without this "Inhibition /Decree" would likely stop me having more disposable income when trying to renegotiate mortgage rate.......does that sound ok.

I appreciate comment re "Commercially Sensitive" however at the end of the day my loan was with Sainsbury's not Cabot, As Cabot purchased the debt then Sainsbury's no longer have any interest in it. As such surely its unfair for Cabot for example to purchase a debt of £12k by paying £3k then pursuing me for £12k.

A lot of people have tried this argument, but have got no further with it.

I was going to say I was ill last couple weeks (Which is true) , ask them to give me more time to take guidance and advice, tell them my mental health is suffering and also try to explain that by not allowing me to make monthly payments without this "Inhibition /Decree" would likely stop me having more disposable income when trying to renegotiate mortgage rate.......does that sound o.k.

Go for it, but remember they are not your friends, write 'Without Prejudice' on the letter. Read through it several times.

[coolhandct]

I appreciate comment re "Commercially Sensitive" however at the end of the day my loan was with Sainsbury's not Cabot, As Cabot purchased the debt then Sainsbury's no longer have any interest in it. As such surely its unfair for Cabot for example to purchase a debt of £12k by paying £3k then pursuing me for £12k.

A lot of people have tried this argument, but have got no further with it.

I was going to say I was ill last couple weeks (Which is true) , ask them to give me more time to take guidance and advice, tell them my mental health is suffering and also try to explain that by not allowing me to make monthly payments without this "Inhibition /Decree" would likely stop me having more disposable income when trying to renegotiate mortgage rate.......does that sound o.k.

Go for it, but remember they are not your friends, write 'Without Prejudice' on the letter. Read through it several times.

Hi

I sent a letter as indicated and received the following reply.

To be honest I find it totally confusing which may be intentional but it seems to be all over the place.

I just wondered what your thoughts are and also had a couple of questions.

Im aware that an Inhibition prevents me from selling or remortgaging and is recorded on Register of Inhibitions?

1. Can this be done without having something against or logged on my credit file?

2. I was trying to explain to them that I wanted to renegotiate a better mortgage rate with same lender in 2 years when my credit would be clear which would save me quite a lot of disposable income which in turn would allow me to pay more to them but if the Inhibition does actually involve them having to record something on my credit file this would stop that.

3. If an Inhibition was logged does this actually stop you staying with same lender and taking a different mortgage product i.e. essentially all thats changing is the interest rate.

4. They are clearly trying for this Inhibition so that if sale occurs they would have debt paid?

5. They say in one sentence that unless sums were paid in full but then say they would consider a settlement offer. They then say they are ready to commence court action but then say they are happy to give me 30 days to seek advice etc. They then say they would be happy to accept £100 per month on condition of Decree and Inhibition - Again can the Inhibition happen without the Decree and am i correct that a Decree would be a court order that would be recorded on credit file.

6. They then say again given me 30 days but if I dont pay full amount then they would look to proceed with court action to recover full amount despite having just told me that they would consider a settlement offer but this wouldnt impact any informal instalment arrangement alongside - Is it just me or is this not incredibly confusing and contradictary.

7. Do you feel I have any options left?

8. Would a Debt Arrangement Scheme be an option? Does this involve a record on credit file? Does it protect any savings, house and car?

9. Finally my issue here is that whilst I may be able to make an offer to clear they still have not come back to me regarding loan 2 for 10.7k. Is it likely they are holding back on this on purpose. In theory if I were able to clear the £12k loan to avoid Inhibition my worry is they would then suddenly provide proof of the 2nd loan belonging to me then insisting on the Inhibition for that anyway. Is there not a timeframe for which they should comply as its been a few months now.

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