Compass debt company

[Wingco]

Re: Compass debt company

Just received a letter from Cabot Financial I know two of my debts were brought by them but the first paragraph of their letter is very worrying as I feel others maybe pulled in a second time. Here it is and I quote:

Your account

We are Cabot Credit Management Group and we own your account. Another company has been managing this for us, it has now been returned to us and we will receiving your future payments."


The rest is about working out a repayment plan and understanding you finances to do this.

Also someone on the Facebook group has had their payment taken this month, be sure to cancel all payments.

Sorry, but it should be impossible for Compass to take any payments now as their accounts were seized and frozen in early March. All payments were stopped. The FB poster may be talking about their February payment or an early March one but certainly not this Month.
But it makes sense to close the DDM with your bank.

I would definitely ask Cabot to prove they "own your account". It is fairly likely they don't have any of the necessary paperwork; original contracts, default notices (DNs) and appropriate transfer documents from your original creditor and previous Debt collection Agency (DCA). DCAs use the 'scatter-gun' technique and buy up hundreds of debts for around 10p in the pound and then hope to harass us into paying them. Some people will, others will fight back. Keep matters on your terms and ask the DCAs questions. Some have terrible reputations, awful record keeping and yet are amongst the most aggressive. Fight back and enjoy the game.
Wingco

[Raspingolive]

Re: Compass debt company

Doesn't seem to let me reply/PM. I'm using my phone so I'll try via desktop in the morning & see if that works.
Thanks

[Goldragon]

Re: Compass debt company

Sorry, but it should be impossible for Compass to take any payments now as their accounts were seized and frozen in early March. All payments were stopped. The FB poster may be talking about their February payment or an early March one but certainly not this Month.
But it makes sense to close the DDM with your bank.

I would definitely ask Cabot to prove they "own your account". It is fairly likely they don't have any of the necessary paperwork; original contracts, default notices (DNs) and appropriate transfer documents from your original creditor and previous Debt collection Agency (DCA). DCAs use the 'scatter-gun' technique and buy up hundreds of debts for around 10p in the pound and then hope to harass us into paying them. Some people will, others will fight back. Keep matters on your terms and ask the DCAs questions. Some have terrible reputations, awful record keeping and yet are amongst the most aggressive. Fight back and enjoy the game.
Wingco

It it was taken yesterday through standing order. They have been told to contact the bank, chance are it will be returned as unpaid but thought better to warn people as banks pay standing orders automatically.


Wingco have just seen an update bank has returned the money.

[Wingco]

Re: Compass debt company

I was just thinking if it might be an idea for everyone to write a short paragraph on how they have been affected - in their lives - have seen lots of people talk about not sleeping, the worry, not being able to afford to move house, being put back 5/10 years in finances/retirement and so on.

I was thinking gather these together and publish something like an open letter to the Directors of Compass and the FCA and MP's ( particularly BIS and Amanda Solloway) ? to show the utter devastation this causes and remind everyone of the human element and the lives cocked up because of their greed and the regulators inaction.

Just an idea if it's worth thinking about?


Jules just reminded me I mean ' personal impact statements'

Wingco's PIS:

When I went to Compass Debt counselling in 2014 i was at wits end - I had mounting debts and the interest was larger than I could afford to pay out each month as my business suffered in the recession. Compass was a God send; I felt a huge weight was lifted off my shoulders.

If only they had been honest and done what they said they would do. They started to under pay my creditors, they missed or paid them late, they were adding in extra fees for BACs transfers and for adding creditors to my list. Their communications were very poor and they lied to me whenever I called them. Certain monthly payments either weren't made or went missing. My 'pot' was meant to be growing by £71 per month but apparently it was going into the directors' dividend 'pot' instead. I feel gutted that they could mislead me and many hundreds of others. Most people seem to have lost thousands of pounds having been with Compass for nearly 10 years.

Having been at the Liquidators' meeting on 30th March, I was shocked to learn the Directors could not explain where the clients' funds had gone, or how the money should have been allocated each month. Worst still, it appears HMRC knew about Compass way back in 2011 and the FCA has also known about their mishandling of clients' money for a number of months; no-one bothered to warn the clients. The FCA needs to apply robust regulation on Debt Management companies and the FCA's tardy approach to what has become a travesty of financial incompetence shows the FCA in a very bad light indeed. They should have been protecting the clients and not the Debt Management Companies.

Wingco

[Goldragon]

Re: Compass debt company

Hi can anyone explain full and finally payments to me. I have a couple of thousand from criminal compensation I received last year thankfully I didn't give it to Compass and kept it as a cushion in case of anything. My debts are as follows:

Cabot formally Lloyds overdraft £1353.46

Cabot formally Lloyds credit card £9213

Lloyds loan £9485

Halfax overdraft £83.10

Idem formally Halfax credit card £5822

Step Change has recommend either an IVA or bankruptcy. I was with Compass for 5 year I have no assets live in a room and am on minimum wage now with was me first pay rise in all that time and have been struggling to keep up payments with price rises. Under Step Changes figures my payment should be half of the £200 so they will still only be getting token payments. I don't think I have enough to do it but have a few members of family and friends who have offered to help. My nan bless her said I would only get it when she passes and she would rather I had it now when I need it.

[Amethyst]

Re: Compass debt company

If these debts defaulted 5 years or more ago and you have been making token payments via Compass for that time, the creditors may well be open to full and final offers to settle the debt and write off the remaining balance.

The Lloyds loan and halifax overdraft - are they with debt collection agencies now or still with the original creditors ? They are likely to be harder to get full and finals on.

However those with Cabot and Idem will have been sold on to them - likely for under 20% of the outstanding debt. therefore you COULD make F&F offers from say 25% - 50% ( start low and let them negotiate up ) However on £25k that's not going to be all that realistic to cover all of them ( and IMO its not worth doing piecemeal )

Otherwise bankruptcy is an option - not my area at all so tagging [MENTION=48934]Debt Camel[/MENTION]; to have a look - but as you have no assets, and presumably no particular desire for credit in the foreseeable future - unless your job is in financial services or similar then it could be worth looking at to get everything wiped and enable you to draw a line under everything.

Do you have any CCJ's from any of the debts or have they all been accepting the payments through compass okay ?

[Raspingolive]

Re: Compass debt company

Just another quick question I hope someone can answer. Alot of mine & my husbands debts have been being paid a token amout for over 10 years, and all but 2 RBS debts have been sold on to debt collection agencies, I'm wondering about F&F offers for these debts if I could remortgage my home?? I know house prices have risen in my area and estimate that there is £45000 in equity, is this an option or just me hoping it is lol!!!!!

[EXC]

Re: Compass debt company

Just another quick question I hope someone can answer. Alot of mine & my husbands debts have been being paid a token amout for over 10 years, and all but 2 RBS debts have been sold on to debt collection agencies, I'm wondering about F&F offers for these debts if I could remortgage my home?? I know house prices have risen in my area and estimate that there is £45000 in equity, is this an option or just me hoping it is lol!!!!!

[MENTION=6]Amethyst[/MENTION] is your gal.

What particular debt collection agencies are the debts with?

[Unlimited5]

Re: Compass debt company

you are effectively changing your debts to a secured debt which I am guessing is unadvisable! I certainly wouldn't be doing that. Have you signed up with Stepchange?

[Amethyst]

Re: Compass debt company

Think very carefully about releasing equity from your home. Interest rates are likely to rise at some point in the future and you'd be swapping unsecured debts with very little risk to your home into secured debt with all that entails. Your credit file should be relatively clear though if these debts defaulted over 10 years ago so you shouldn't be forced to a subprime type lender - however you would have to disclose the outstanding debts which would impact on the lending decision, so you'll have to carefully assess affordability - adding to your mortgage would be better than getting a secured loan though.

StepChange have asked for approx £350 a month & said we can be debt free in 10 years

seems extreme. I'm sure there's better options. Is your outstanding debt £40k odd then ?

I think a list of the creditors (current and the original lender) and the amounts would be a great start then a few CCA requests and request for account statements would be in order for the moment - you can always start the stepchange plan while you deal with creditors on the side yourself then remove them from your stepchange plan as and when things are sorted. Worth exploring those options first before jumping into securing it all on your home.

Have you investigated all PPI reclaims etc with the debts?

Oh another thought - if you can extend your mortgage then depending who these debts are with you may well be able to get away with F&F's of about 35% which would make it a far better option.

Remember we are not debt advisers - just peeps who have been through similar experiences xxx

[Raspingolive]

Re: Compass debt company

Thank you so much everyone for all your advice. Our outstanding debt is £42000 (its not really gone down much in 10 years!!!!) apart from 2 debts which are still with RBS, the majority of the others are with Robinson Way, & 1 with Cabot Finance. I really appreciate all the helpful hints, I'll start with the CCA letters you mentioned. I havent really got a clue but i'll keep checking back here to help me!!!! As for PPI claims Compass looked into it a couple of years back, we signed all the paperwork as requested but didnt hear anything,despite us asking, they where very unhelpful!!!!

[Amethyst]

Re: Compass debt company

I'll set you a thread up in the private compass forum so you can keep track of things easier xx

Might be worth checking with your lenders ref the PPI claims just in case they paid out and you were never told. With outstanding debt it is likely the amounts should have come off the outstanding balances rather than have been sent by cheque etc, but possibly not if the debt had already been sold on to a DCA.

[Openlaw15]

Re: Compass debt company

Think very carefully about releasing equity from your home. Interest rates are likely to rise at some point in the future and you'd be swapping unsecured debts with very little risk to your home into secured debt with all that entails. Your credit file should be relatively clear though if these debts defaulted over 10 years ago so you shouldn't be forced to a subprime type lender - however you would have to disclose the outstanding debts which would impact on the lending decision, so you'll have to carefully assess affordability - adding to your mortgage would be better than getting a secured loan though.

seems extreme. I'm sure there's better options. Is your outstanding debt £40k odd then ?

I think a list of the creditors (current and the original lender) and the amounts would be a great start then a few CCA requests and request for account statements would be in order for the moment - you can always start the stepchange plan while you deal with creditors on the side yourself then remove them from your stepchange plan as and when things are sorted. Worth exploring those options first before jumping into securing it all on your home.

Have you investigated all PPI reclaims etc with the debts?

Oh another thought - if you can extend your mortgage then depending who these debts are with you may well be able to get away with F&F's of about 35% which would make it a far better option.

Remember we are not debt advisers - just peeps who have been through similar experiences xxx

More than rise at some point in the future, it is inevitable as mortgage interests are artificially low and will likely be the near future as many people (too many more likely) will likely to be taking advantage of their properties equity. This is why economies dip as people use money that isn't money ie equity, they pay for fancy holidays, cars, business loans, which could lead to another housing bubble. The effect could be over valued properties, well too many of them will inevitable cause property values to spiral downwards, banks will legally be permitted to repossess the properties to invest in new ones, and many people could become homeless. The economy simply doesn't work off credit it requires business ie money transactions.

[Amethyst]

Re: Compass debt company

I don't think anyone on this thread is considering they pay for fancy holidays, cars, or business loans OL, but thanks for the cheery insight xx

[Openlaw15]

Re: Compass debt company

I don't think anyone on this thread is considering they pay for fancy holidays, cars, or business loans OL, but thanks for the cheery insight xx

Equity is a dangerous thing is all am saying as it is not money. What is money, it's just digits on a screen and for it retain its value requires a strong performing economy. There is only so much any performing economy can withstand based on a credit economy. I didn't mean literally exchange equity for those things per se.. i just meant imprudently using equity. Sometimes a gloomy perspective keeps persons sober to realities. I am not right wing by the way, am just interested in economics.