Unlawful rescission and Cabot

[macstubble]

A Morgan Stanley account of mine which was on a reduced repayment plan with the original creditor was sold without any notification or Default Notice being issued by Morgan Stanley to the delightful Cabot .

Been advised by some knowlegeable people that the agreeement was rescinded at point of sale to Cabot as no Default Notice was ever issued by Morgan Stanley prior to sale.

Can anyone explain what unlawful rescsssion is and how it applies here if this is the case. What makes the lack of the Default Notice relevant here? And how does this differ from normal Morgan Stanley accounts being taken over by Goldfish and then later Barclaycard in the past few years.

For futher info, in 2009 Cabot issued a Default Notice in thier own right quoting under Section 87(1), which has been followed by an account termination notice. Is this normal practice and more relevant legal??

I have read enough about Cabot to know how slippery they are and how they also think the law is subject to thier own brand of interpretation, so any explanation or advice woul be most welcome.

.

[LuggerBugs]

Re: Unlawful rescission and Cabot

If the account was assigned without Notice of Assignment, then the assignment is simply equitable. Legal title theoretically remains with MS, with all benefits transferrable to Cabot. Did Cabot send you their "Hello" letter, probably with their own in house copy of Morgan Stanley's "Goodbye" letter?

As regards the default notice, basically, this means that MS should never have sold the account to Cabot, as effectively you were never afforded an opportunity to remedy any breach that may have taken place. Therefore Cabot have no right to default you unless they too offered you an opportunity to remedy any breach.

I would as a first instance CCA Cabot, with a covering letter informing them that you dispute their right to both collect on this account, and dispute their right to default you.

All of the above assumes that you DID technically default on your MS account. In the event that MS merely dumped your account with Cabot, it would be interesting to know whether Cabot simply defaulted you as a matter of course, or whether they made any attempt for you to continue payments with them as the new creditor.

More info would be helpful.

[macstubble]

Re: Unlawful rescission and Cabot

Somehow I seem to have missed the fact I got a reply to this post 9 months ago.!!:embarassed:

On advising Cabot of unlawful recisssion they confrm at time of sale no default had been issued by MS. They say therefore they were obliged to administer the account in the same manner as the orignal lender would, ( which totally contradicts their response to my CCA request which states they are not obliged to provide this information!!).

Their letter then descends into the land of Cabot make believe, of what they say they did to comply with this. Of course they didn't. For over a year prior to their DN Cabot only sent automated generic begging letters which quoted a figure of the alleged full outstanding balance. But that's Cabot for you. The letter came from one of their 12 newly appointed Creative Compliance Officers.

So far they have provided

- An illegible application form, can't read a word of it, taken from a bad quality microfiche. the original no longer exists.

- some statements from MS. They're missing quite a few.

- Barclaycard current terms and conditions.

- An undated copy of a representative Goldfish assignment note with a hand scrawled pencilled note 'It would have looked like this'

- Cabots own DN with a dodgy alleged arears figure.

I'm under no illusion about Cabot and expect they may one day try this out in a court, but I've since taken some legal advice and I'm told I should be able to defend this.

Meantime they've been phoning anywhere between 1 and 5 times a day, 6 day a week, from a number of automated diallers for the past year despite being told I'll only deal with this in writing. I never speak to them but it's costing them money , no wonder they lost money last year.

A creditor always has the option of taking you to court, so in my mind it seems unreasonable and excessive to be called in this manner for this length of time.

.

[shell]

Re: Unlawful rescission and Cabot

Send them a signed for letter stating that the excessive calls constitute harassment and if they don't stop as you have already asked them, you will be suing them for harassment.

Might be an idea to start logging all calls.

[macstubble]

Re: Unlawful rescission and Cabot

They're all nicely logged and can be proved from the records of a Truecall machine. Wonderful piece of equipment. If we didn't have it would spend all day answering calls. They were also leaving BT text messages but was easy enough to remove that option from our BT package.

Have already had a complaint accepted by the OFT regarding the frequency of their calls.