Help with Defaults - in desperate need

pinkerton_angel

Hi,
I'm in desperate need of some help with 2 defaults I have. I got into some problems a few years ago, 2 redundancies, a very draining ex!! and took some really bad advice so is basically all my fault and I can accept that. I had some debts with Next and Littlewoods and asked both if I could reduce payments but they said no, asked both for copies of credit card agreements, neither of which could supply, the bad advice was to stop paying as there were no CCA's so I did and was then defaulted on both accounts. My issues are (certainly with Next) that at the time of default I a) didn't receive a default notice and b) was disputing my account for non delivery of goods at the time of default. I have written numerous letters to them, they have admitted not having a CCA and also that they cannot prove which items I've received, at one point they offered a reduced amount for me to pay and would remove the default (how I wish I'd accepted this now) but I still disputed the amount, I offered a much lower amount, they refused. I wrote to the FOS who have spent months and months investigating, just this week I have received a response from them saying that Next cannot provide them with a CCA either but that because the default was before April 2007 (was in March 07) they cannot even look at it!! What on earth can I do now? I feel like I'm going round in circles. I've acknowledged that I do owe them some money (albeit not the full amount) and I'm happy to pay this but I desperately want the default removed as it's causing me huge problems. I've tried all the usual letters for removal of defaults, none have worked. Do defaults only 'disappear' 6 years after you've paid the balance or do they write off the amount after this time. I'm guessing the next stage is court but I really don't know what to do.
Please can someone help
Thanks

pinkerton_angel

Just checked my credit report and Cabot have listed this debt TWICE!! How can they do this?

RosaBernicia

Hi Pinkerton

I have no knowledge of this myself but didn't want to just read and run - so have a hug :grouphug: and hang in there. Someone who knows more than me will be along soon. In the meantime, maybe you could look up the debt charities usually recommended (which I think are on a sticky on this board) and look at making an appointment with your local Citizens Advice Bureau?

Rosa xx

Broken_hearted

pinkerton_angel wrote: »

Just checked my credit report and Cabot have listed this debt TWICE!! How can they do this?

I'd speak to the people who hold the credit report as they can look to see what has happened and advise you on how to get rid the second one.

Hippocampus

pinkerton_angel wrote: »

Just checked my credit report and Cabot have listed this debt TWICE!! How can they do this?

Because they are an utter shower of barstewards.

Did you involve the FOS before or after this ended up with Cabot? Your post isn't clear on the timeline, annd doesn't actually make clear that you knew that Cabot were involved until you checked your credit file. Have Cabot been chasing this then?

Since there clearly isn't going to ever going to be a CCA turn up at a later date, if Cabot want to try enforcing this, they are going to find it hard to win. Their best bet is to start negotiating with you.

Default though. Hmmm. Cabot are not known for being anything other than vindictive when it comes to your credit record. IF you were to pay the lot off to them, the best you could hope for is for them to mark the account as Satisfied. Otherwise, if you paid not a penny from now on, the default will drop off 6 years after the default was first registered.

Another thing to be aware of with Cabot is, they quite often apply a randomly calculated interest rate to their accounts. As catalogue rates tend to be quite high anyway, this may work in your favour. But it IS important to know that they CANNOT apply a rate higher than that on the original agreement.

Oh, that's right. There IS no original agreement.

GeorgeUK

If you've already tried sending letters about the removal of defaults, u'm not sure this will help much, but you could have a look at the letter i posted here.
http://forums.moneysavingexpert.com/showpost.html?p=12720057&postcount=43

Hopefuly this will shock them into action especially as you were disputing having received the goods in the first place.

good luck

pinkerton_angel

Thank you all so much, you're all so very kind and keep people like me from going mad!!
I was having a clear out today and as unorganised as I am, found an unopened letter from last week from Cabot saying that Next cannot provide them with any documentation that I've requested so they're willing to accept a full and final payment of £250 (debt is £850), obviously I'm happy about this but it doesn't resolve the default issue. Should I phone them and tell them I won't pay unless they agree to remove the default too? will I be in any better position if I pay the £250 and still have the default (other than £250 worse off!)
Thanks
pinky

GeorgeUK

If you pay the £250 the default will be marked as satisfied, but will still impact your credit score. Are you sure that the letter is for full and final settlement and that they will not pass the debt on to another party?

I would refuse to pay unless the defaults were completely removed as they do not have a legal right to put the defaults on you file. If you have not done so, make sure a note is put on your credit file that the debt is in dispute as you did not receive some of the products and that you are reporting them to the regulatory authorities and the Financial Crimes Branch. But that's just me.

Hippocampus

Under no circumstances phone!!! You'll end up talking to a school leaver with a script!!!

Best bet is to write. BUT. Do NOT admit that a debt exists. This might actually be Cabot's chance to show that they are not totally immoral vindictive wee sods after all.

If you ARE positive that you want to pay this off (and a £250 offer from Cabot on an £850 debt means that they know the debt is unenforcable), then I suggest a letter along the following lines...

Dear Sir (pop a name in there if you have one)

thank you for your kind offer to reducing the balance on account [enter Cabot number here] to a Full and Final settlement figure of £250, in your letter dated [whenever].

As a gesture of goodwill, and entirely without prejudice, I am prepared to agree to pay Cabot Financial (Europe) Ltd the sum of £250 under the following circumstances:

That Cabot agree IN WRITING...

That this in no way constitutes an admission of liability for any debt whatsoever.

That Cabot Financial (Europe) Ltd indicates that this payment is accepted as FULL AND FINAL.

That Cabot Financial (Europe) Ltd agrees to remove ALL adverse markers with ALL credit reference agencies.

You should note that this is the only time that I shall make this offer. As indicated to you previously, I DO NOT accept that I am liable for any payment whatsoever to your company or any other company within the Cabot Group, but in a spirit of negotiation, I trust that you will see fit to respond in a likewise positive manner.

As the default is the sticking point, and it's obvious that Cabot know full well that any purported debt is unenforcable in any case, they may well concede to your request. It'll be lear from your letter that this will be the only chance thay have of seeing any return whatsoever, and probably better than they could have hoped for.

But no removal of default, and I wouldn't pay them a bean in your shoes. You'd be worse off financially for no gain whatsoever.

After all, Cabot will MAYBE have paid as much as £85 for the account. But I doubt it will have been that much. So negotiation being the name of the game, you might just luck out.

pinkerton_angel

Thanks Hippo, that's really nice of you, I'll send off tomorrow and let you know how I get on

Hippocampus

I'll keep my eyes open for their reply Angel.

I'm surprised they ever bother to buy debts from catalogue companies to be honest. There's NEVER an agreement, and so are all pretty much unenforcable.

Likewise, catalogue companies would seem to exist because their customers feel honour bound to pay, despite their accounts being potentially all unenforcable. A far cry from the "rogue debtors" the credit industry would have us believe infest their world.