Debt help

crazyhaggid

I would like some advice on a matter regarding a credit card debt, quick version of the story:

1.Was working and had a credit card and a couple of other debts, lost my job so through CAB went on agreed payment plans with each of my creditors
2.After managing to find another job continued with payment plan for each creditor but increased the amount I was paying, never missed a payment.
3.Out of the blue one of my creditors sold their debt to Cabot who started to hound me (constant threatening phone calls, etc) and who also started to pile on interest at an unknown high rate
4.From this forum got advice to request CCA, did this found it did not contain the prescribed terms.
5.Told them debt was unenforceable
6.They left me alone for ~8 months but have now started contacting me again, by post only
7.The debt has now increased from £1200 to £1800 since Cabot took it over.

What I was wondering is are they entitled to charge interest at any rate they want if at all? As we’re expecting our first baby I’m trying to move house and the mortgage broker told me that I may have to pay these debts off using some equity from the house when we move to satisfy the new mortgage provider. Obviously I don’t want to have to pay an extra £600.
Does anyone think it would be worth contacting Cabot and suggesting if they reduce the debt back to the original amount and freeze the interest I will pay it off in instalments? Up to now I’ve tried not to contact them as every day is a day closer to the debt lapsing.
Any advice would be appreciated.

MrsTinks

Not contacting them in the hope that the debt will "lapse" - or become statute barred is pointless - it's 5 years and 4 months till that happens if you live in England and a year less if you live in Scotland...
Wait until you have the money and then offer them a full and final offer of something like £800 for the whole debt. Unless you want to go down the CCA route - the issue there might be with that is that whilst yes they can't chase you for it, however it sounds like this isn't going to meet the criteria for your new mortgage provider. But negotiating a full and final with the creditor in exchange for them marking the debt as "settled in full" on your file would

crazyhaggid

MrsTine wrote: »

Not contacting them in the hope that the debt will "lapse" - or become statute barred is pointless - it's 5 years and 4 months till that happens if you live in England and a year less if you live in Scotland...
Wait until you have the money and then offer them a full and final offer of something like £800 for the whole debt. Unless you want to go down the CCA route - the issue there might be with that is that whilst yes they can't chase you for it, however it sounds like this isn't going to meet the criteria for your new mortgage provider. But negotiating a full and final with the creditor in exchange for them marking the debt as "settled in full" on your file would

The only problem is the massive interest they are continually applying are they allowed to do this?

Ames

No, they're not allowed to charge interest unless a court tells them they can.

crazyhaggid

Ames wrote: »

No, they're not allowed to charge interest unless a court tells them they can.

Thanks for the reply, do you know what law/regulation states this as I would like to be able to quote it when I write to them to settle it.

crazyhaggid

If any does know what law stops them charging interest, I would be very grateful if they could tell me.

MrsTinks

Have you actually got a breakdown of the debt? They may have put it under a sneaky heading or something

crazyhaggid

MrsTine wrote: »

Have you actually got a breakdown of the debt? They may have put it under a sneaky heading or something

No they just send me letters stating 'amount owed' Can they charge interest?