Cabot Financial, i could scream

thatchamlad

I am 2 months away from paying off a £1152 debt to Barclaycard through Cabot.

I have a statement showing i only owe £140 from December and today they have added £447.00 interest from the original amount on to the balance.

Can they do this at such a late stage?

HELP!!!!!!

crazyhaggid

I've been told that they can only add interest up to a maximum of that stated in the original agreement. I too are currently dealing with Cabot who have added a random £96 interest charge onto my account. Maybe one day the Government will get their act together and properly regulate these robbers. Good luck you're not alone

thatchamlad

crazyhaggid wrote: »

I've been told that they can only add interest up to a maximum of that stated in the original agreement. I too are currently dealing with Cabot who have added a random £96 interest charge onto my account. Maybe one day the Government will get their act together and properly regulate these robbers. Good luck you're not alone

Should the interest not be added at the start of the repayment plan and not at the end when you think you are nearly clear?

They have charged an additional 30% of the total amount i owed and to make it worse they have added it 2 months before i was due to finish paying them. I have never missed a payment either.:mad:

crazyhaggid

From my statement which I received from Cabot today, they have been adding interest every month like a credit card, rather than a set amount at the start like a loan. If possible try and get them to send you a complete statement showing your account from when they purchased it (for only £1 per £100 owed!)

thatchamlad

I Have the entire statement just now.

They purchased it in 2005 with a balance of £1152. I made a couple of tocan payments in 2005 but then stopped.

For the last 20 months i have paid £50.00 a month without fail and in December they sent me a statement saying i owed £140.

Today however when i went on their website it showed they had added interest last Monday of £447.00

So now i have another 12 months to pay instead of 3 as i had thought.

I cannot believe they have added this after sending me a statement saying i only had £140 left. I am raging beyond belief.:mad:

nandj_2

Hi thatchamlad,
Check your original contract to see if interest can be added anually, also check back through your corospondance with carbot to see if they stated that they will be continuing to add interest.
Write to them, and complain to oft, ico and ts via consumer direct.
And to make things worse, Carbot purchased your debt between 10p and a maximum of 17p in the pound £115.20 - £195.84.
NandJ

Madison

I've got an account with them which will soon end. They've sent me a statement each month showing the payments made and no interest was added. They accepted an increased offer recently but changed the due by date. When I rang them to move it back as my salary wasn't paid in time to meet it, they agreed but said if I missed the new due by date then they'd apply interest. I have several accounts coming to an end soon and I'm worried that the credit cards who froze the interest will now apply it retrospectively.

DGJsaver

I would be going for the CCA request if i ws the OP , disgusting behaviour by a more or less unregulated company

Makes you sick

pepe2008

Unless you have a specifically worded Contract with them agreeing to their charges and Interest, they cannot charge you anything!

Remind them of this in a letter and ask for a copy of their Complaints Procedure, Complaint to the OFT.

DarkConvict

As above, do a CCA request, see what is on the CCA terms and conditions.

Why? They can only charge interest based on the original agreement, if it says monthly they must add it monthly, it must define the rate they are to charge at, and most importantly must say interest is transferable to a 3rd party. If not they can't charge anything at all.

Madison

So if they agreed to freeze interest, they have to stick to that and can't reinstate what you would have paid during the time it was frozen, at the end of the DMP?