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Cabot debt

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  • #31
    Clive23 when you have a consumer credit debt that you have not serviced or acknowledged for 6 years from the date of default it goes off statute. Making a payment keeps it alive and resets the 6 year period.

    So if the debt was formerly put into default by M&S in Jan 2013 it would go off in Jan 2019. If you made a payment in 2017 it would keep it alive until 2023.

    I made the mistake of contributing to my consumer debts for years, then when I told them I could not afford to pay anything they asked for £5 a month each and then for £1 a month each to show willing. Finally I got decent advice and I stopped paying or communicating, I moved several times but if I had a credit check for anything they would be alerted to my new address and so it would all start again.

    So you need to look for anything that confirms the date of default, with me it was a year before it was sold to the scavengers then passed around for all to "have a go".

    What they bought the debt for is not really a factor, what matters is their right to enforce the debt. Of course it makes you sick, but what is more sickening is that the debt was insured, the money given to you was created out of thin air.

    6 years passed and I have a lovely collection of letters for numerous consumer debts, it became clear to me that they use a series of promises and threats that are just designed to make debtor contact them and acknowledge the debt.

    If the debt is still enforceable (within 6 year statute) then you have a number of options.

    If you do not own your own home or any assets and can't afford to service debt then insolvency is an option; if all your debts are under £20k then it costs £90 to get a Debt Relief Order, you list all your debts, provide a financial statement and budget, then after a year if you still can't afford to service the debts all are written off. Note you could be forced to sell your car if owned and worth more than around £1500.

    If the debt is over £20k then a full bankruptcy costs around £700 but perhaps less if you are on benefits.

    Insolvency can feel like a nuclear option, but it can be a great relief if you have lots of debt. The debt charities have lots of pages on this.

    If you own your own home you could sell up and move, then go off radar (don't register to vote, never use a company that uses credit reference database, etc) for 6 years.

    You could also sell your home to your kids on condition that they give you a lifetime tenancy. The sale value would need to be realistic market rates but if they could get a BTL mortgage and you paid them rent it could work for you. A friend of mine who is a barrister did this many years ago when his father died and his mother wanted to do up her place, it was a sort of family equity release.

    If the debt is still alive you could of course pay the debt in very small increments such as £5 a month, but I would first want an audit on all payments made and the amount actually owing. You probably have the information you need to do that on the CD.

    Some might ask why I give advice on avoiding this debt, mostly it is because I feel that the lenders do not take adequate steps to prevent poor lending, they do this because they can invent money for 3% of the amount they lend yet charge 39.9% in interest, get paid out by insurance and still sell the debt on for recovery. This is why our economy will never be out of debt.

    What should happen is that when they write off the debt the debt should be cancelled and written off. It is grossly unfair that once they sell the debt they are free to invent another debt of the amount they have just sold for 5p in the pound and again it costs them just 3%.

    Do a spreadsheet and work out the interest paid on your original M&S debt, I suspect your debt may have started at £10,000 and grew to £13k with interest, yet the debt cost them just £300.
    Last edited by Karen74; 27th March 2021, 15:01:PM.

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    • #32
      Hi,

      I have recently reminded Cabot that they have failed to supply the CCA as requested by me.

      Comment


      • #33
        Originally posted by Clive23 View Post
        Hi,

        I have recently reminded Cabot that they have failed to supply the CCA as requested by me.
        if CCA out standing never remind them , unless of course you want them to find it (being that it may be enforceable or not) do not encourage them by reminding them as they can interpret the action as a person who is easily fooled or panick!

        Comment


        • #34
          I am not a fan of insolvency unless it really is the only option. Any insolvency will stay on your credit file for 6 years from the date it takes effect. I worry that some of the suggestions made by Karen above sound like debt advice , and bad debt advice at that- I am sorry today is the first time `I read it properly. If you did decide to go down the BR route and sold your house , the Official Receiver has all sorts of powers if they believe you did it to divest yourself of assets.

          I do agree with Mike770 - generally it s not advisable to remind a company they are in default of a CCA request (there are never absolutes with things like that so sometimes such as if you receive a letter of claim you might want to remind them).

          If, and I hope you don't, you get a claim it would probably be worth talking to Paul Tilley (PT2537) or another specialist lawyer who deals with consumer credit

          Comment


          • #35
            Hi,

            I am grateful for Mike770 and Matty B for your replies. I have a situation that I want finalised from the clutches of this company. If you can understand that I had a Loan from M&S this was sold to a debt agency say for 11p in the £ . Therefore my mind looks at the finance currently I have well paid the value Cabot have purchased this loan from M&S and they are in profit. (not from the figure M&S loan but from their purchase).
            I see a tendency that you treat a company like Cabot with some respect at their approach to people by scarring them in some form getting their money they demand. You have advised me to get SAR and CCA but say do not push them which means we stay in limbo. Do we just keep paying and not saying you have not proved CCA details as requested. Etc Etc.

            Comment


            • #36
              Hi Clive

              I have nothing but contempt for the likes of Cabot and I will try and explain my reasoning behind the suggestions. If I had my way , all debt purchasers would burn in hell. I refuse to talk to any of them on the phone and demand everything in writing.

              Firstly, how do you know they paid 11% of face value for the debt? Is this just one of the many figures bandied around the internet or do you actually have sight of the deed of assignment which is the legal document?

              Now if we assume that the assignment (sale) of the debt from M&S to Cabot was legal and Cabot have been assigned all the rights then you owe them the full amount not what they paid for it and if they took you to court that is what they would claim along with interest and costs- sorry of that isn't what you want to hear but it is the truth.

              If it was me I would want firstly to find out what their chances of winning in court would be and for that I would send the SAR and the CCA request. If they can not produce the agreement they should not be able to enforce in court and in fact if they do not have the agreement , in my experience Cabot have been good at saying we don't have it and it is unenforceable . If it is unenforceable then you can either just stop paying or make them a low full and final offer . If on the other hand they produce the agreement with all the right bits you will have a greater difficulty getting a low settlement.


              On the other hand if you make them an offer you need to make sure it is done in such a way as to be full and final and they can not sell the remainder on. If they think it is enforceable they are less likely to accept anything below say 50% maybe a lot more.

              Even if the agreement is kosher there is a lot more to it, for example is the company licensed (cabot Financial (UK) are not, is the assignment good , was a compliant default notice

              I can't tell you to pay cabot money unless you have to. You sent a CCA request and they haven't complied, in my book they can go screw themselves for the money and in 6 years you are home free with the debt statute barred. If you want to get rid then write something along the lines of

              ' While I deny owing your company any money, I find the prospect of your constant harassment disturbing. To summarise, I am prepared to settle for a single one-off payment of £xx to be made within 7 days of receiving your response, so long as this response agrees with and ensures that the following actions will be carried out;


              1. You accept £xx in full & final settlement of this account with no reference or future ability to quote or use Penny v Cole [Pinnel 1602] in trying to recoup any written off balance;
              2. The Status of the account will change from “Defaulted” to “Settled”;
              3. The Current Balance will appear as £0.00;
              4. The Default / Delinquent Balance will be set to £0.00;
              5. You will update the entries on all 3 Credit Reference Agencies, namely Experian, Equifax & Transunion
              If you're happy with my proposal, please respond confirming each of the above points on official letter headed paper, confirming that you're happy for a single payment of £xx; and I'll then send a cheque in the next day so we can close this and move on.'

              I hope that makes sense

              Comment


              • #37
                Matty B you talk my language. I will reread your comments. I do have details of their fees. But would need a secure place to send it too you. I really love your comments. I have a letter to say unforce able.

                Comment


                • #38
                  I’ve sent you a PM. I’m not here to give advice but maybe a sounding board and info swapping.

                  Comment

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