Cabot again ... after nearly 4 years.

tifo

Cabot have written to me again after nearly 4 years. They've offered a 30% discount on the account which is now £2,588 from £1,200 in 2007.

I asked why the balance has increased and am told it's due to the 1% interest they apply every month and that's it much lower than the original interest rate from the credit card provider (am I meant to be grateful to them?).

I asked under what agreement can they charge me any interest and am told under the same agreement I had with the lender. I told them they haven't supplied this after my request in January 2007 made under s.78 CCA and the £1 fee, which they returned for their own reasons. I'm then told the 'agreement' was the reply card application form they sent to me in 2007 because it had the words 'this is an agreement regulated by CCA 1974'.

Any advice?

jonesMUFCforever

Pay up or at least make them an offer.
It will have trashed your credit file so it may not matter to you.

tifo

jonesMUFCforever wrote: »

Pay up or at least make them an offer.
It will have trashed your credit file so it may not matter to you.

The credit file default has fallen off after 6 years so there can't be another one.

jonesMUFCforever

If you defaulted in 2007 it will be there for 6 years - so some date in 2013.

premiere100

I assume you did owe the money from 2007?

If you did, all I can say is pay it if you can.

I have just finished clearing nearly £30k worth of debt from a bank that racked up in 2005. The debt was collected by Fredrickson's and last month we made the final payment and now have letters confirming we owe nothing.

I have worked my butt off over the last 6 years to clear every single solitary penny of debt with them and am proud as punch that I owe nothing. I didn't take or ask for an early settlement.

I borrowed the money (well, my wife and I) originally from the bank and so I paid it back.

If you can, I encourage you to pay. The feeling is great when you are debt free.

tifo

jonesMUFCforever wrote: »

If you defaulted in 2007 it will be there for 6 years - so some date in 2013.

I was first defaulted around 2003/2004 by the bank and this carried on until it cleared after 6 years ..... there was not another default in 2007 because a person CANNOT be defaulted twice for the same account.

tifo

premiere100 wrote: »

If you can, I encourage you to pay. The feeling is great when you are debt free.

Yes, of course, if Cabot can show they have a valid credit agreement to (1) collect the money and (2) apply interest or fees, and if the account includes no default charges and PPI, then I am happy to pay in the same way I cleared many other accounts.

Of course, they would also have to show how an account with a credit limit of £200 in 2003/2004 has ended at £2,588 (and increasing daily).

MoneyWasting_Expert

premiere100 wrote: »

I assume you did owe the money from 2007?

If you did, all I can say is pay it if you can.

I have just finished clearing nearly £30k worth of debt from a bank that racked up in 2005. The debt was collected by Fredrickson's and last month we made the final payment and now have letters confirming we owe nothing.

I have worked my butt off over the last 6 years to clear every single solitary penny of debt with them and am proud as punch that I owe nothing. I didn't take or ask for an early settlement.

I borrowed the money (well, my wife and I) originally from the bank and so I paid it back.

If you can, I encourage you to pay. The feeling is great when you are debt free.

This is a man with character more worthy than his past Credit History. One problem with this forum is that there are large number of people looking the easy and costless way out of debt. You got into debt pay it off. You signed the dotted line, pay for back what is owed. Confident that premiere100 will handle his money with intergrity fron now on, those not paying back there debts will likely end up back in debt (well you actually never got out of debt) because of the thought cycle. Kudos premiere, paying back every penny myself, learned a life lesson from it. Now looking forward to great relationships with my finances. Even while in debt, but amking all my my payments on time, I feel like an embodyment of peace.

tifo

they've sent me a list of transactions going back to 2002 when they purchased the account.

they started adding 'penalty interest' the following month and this was stopped while I was paying.

they starting adding 'penalty interest' again when i stopped paying in 2007 and this carries on up to present.

they're adding 1% a month which is around 12.75% APR .....

the 'agreement' is again the reply card from the car issuer which refers to terms and conditions etc and has 'subject to approval' at the bottom. This is half an A4. Nothing else has been sent, especially anything referring to any interest the creditor can charge.

the principle amount they bought includes default charges/PPI which the original creditor would not refund to me so their offer was never accepted.