Card Debt sold to Cabot, even though I've not been naughty!

neiljmuk

Hi all,

Hope you can offer a little advice.

I have (had!) a Citi credit card. The debt was sold to Cabot. I got the Cabot letter and a supporting letter from Citi (are they the same company?) so I thought nothing of it. The debt is the same, and I'll carry on making minimum payments to these Cabot guys instead....

Except then yesterday I get a credit report, see that the Cabot repayments are down as 'Arranged Payment' in red and that this is not such a good thing (as bad as default??? ) .

Thinking, this is proper naughty, I look at Cabots website and it implies your debt is sold to them only if you have had problems paying your card and failed to read an agreement. !!!!!!!!!!

Background that may have lead to this. I moved house and failed to change my address with Citi for a while. I made the same minimum payment each month (from around the middle of last year to March this year - without checking statements - as it should only come down if I'm not using the card (it was suspended due to not agreeing to higher interest). Anyway in March they chase me because for some obsurd reason I'm caught out by a larger minimum payment and get a few 12 quid charges and arreas to pay. The person I spoke to was incapable of explaining why this was so I just paid the larget payment to bring the account up to date by April and bobs your uncle. Address changes, and now I get statements. So between April and September I make all my payment on time and the right amount then boom, they sell my account.

The credit report had marked as green (payments made) up to last Debember, which was yellow 1 (1 late payment). Jan was ok again. Feb and March were yellow 1's and April a yellow 2 (for 2 late payments), then 4 greens..... so based on this I simply don't get it. I clearly resolved the arrears earlier in the year straight away and things have been immaculate since so why sell my debt and shag up my rating.

I'm going to tear them a new a-hole but wondered how best to do so!

TIA

dmg24

Even though you are now up to date, you were in breach of your agreement. Good luck tearing them a new a-hole but the chances are you will get laughed at. It would be much more productive to speak to them politely, and acknowledge that you messed up.

pqrdef

Citi is reducing its UK operations and has sold its UK credit card business. Looks like your account wasn't included in the deal, probably just because it's no longer a functioning credit card account. But Citi still needs you off its books, so it can close down its systems (credit card accounts are no longer on the website). So you get bundled in with the defaulters.

neiljmuk

dmg24 wrote: »

Even though you are now up to date, you were in breach of your agreement. Good luck tearing them a new a-hole but the chances are you will get laughed at. It would be much more productive to speak to them politely, and acknowledge that you messed up.

I don't think you've read the post properly. I've acknowledged the previous error of my ways some time ago by clearing up with full payment of arrears.

Whats more, as I said, you are supposedly only sold off if you cannot resolve such issues, that were in my case resolved.

Of course, if this is not the case, then I have less of an argument. The language I use is reflective only of my frustrations, hence asking for advice. I've got time on my side at least whilst ever I'm happy to keep making the payments (which of course I am as I owe this money).

neiljmuk

pqrdef wrote: »

Citi is reducing its UK operations and has sold its UK credit card business. Looks like your account wasn't included in the deal, probably just because it's no longer a functioning credit card account. But Citi still needs you off its books, so it can close down its systems (credit card accounts are no longer on the website). So you get bundled in with the defaulters.

Don't you think bundling me in with defaulters after bringing my account up to date, simply because my account is suspended is somewhat blatant bad practice if it's to screw up my credit rating.

Do you think that in light of all this that Cabot can actually send nicer credit file updates or does anyone who is sold onto one of these compaines get marked down as "Arranged Payment"?

Degenerate

neiljmuk wrote: »

Don't you think bundling me in with defaulters after bringing my account up to date, simply because my account is suspended is somewhat blatant bad practice if it's to screw up my credit rating.

Unfortunately, Citi were entitled to sell your debt to whoever they want regardless of the conduct of your account. I'll agree that selling it to the likes of Cabot was inappropriate, but that's life.

Do you think that in light of all this that Cabot can actually send nicer credit file updates or does anyone who is sold onto one of these compaines get marked down as "Arranged Payment"?

I suspect they do, but this is Cabot's problem, not yours. You need to contact them and point out that your account was operating within its agreed terms at the time they bought it, not under an arrangement to pay, and has remained so. They are misreporting your status, demand they correct the error.

neiljmuk

Degenerate wrote: »

I suspect they do, but this is Cabot's problem, not yours. You need to contact them and point out that your account was operating within its agreed terms at the time they bought it, not under an arrangement to pay, and has remained so. They are misreporting your status, demand they correct the error.

Cool, nice one. That ought to be a quick win. I'll get copies of citi card statements, bank statement for the payment that was made after the most recent citicard statement and a copy of the relecent section from my credit report and blast it all through on a letter to them.

Bit overkill but it's rather just nail it in one sitting that have to make phone calls and escalate from there.

Thanks for the advice :beer:

hopefulfooluk

Citi managed to get Cabot to buy my Citibank debt (£3k-ish) a year after I was discharged from a bankruptcy which included that debt.

My opinion of Cabot is therefore that they are muppets of the highest order