Help or advice needed!!!

payback_time

Hi to all, I'm new to the forum and need some help if possible. We had a large amount of debt which we have been able to reduce over the last few years. We had a credit card with Benefical with a balance of £2,521.57 in 2005. We agreed a monthly payment with them which was going well. In 2008 Beneficial passed the debt onto Cabot Financial, we have since then found out the debt was sold to Cabot. We again set up an agreed monthly payment which was going fine up to March this year when for some reason, the direct debit cancelled, (but not by us). Now, Cabot are pushing us to clear the outstanding amount which they say is £2,200.
We have paid them over a £1,000 towards clearing the debt and tonight I gave them a call to offer a full and final settlement of £500. I was told the minimum they would accept is a £1,000 pound.

The things I need to know is:
1: Can a debt company financially gain from someone in debt, I have asked this question to them tonight and the reply was 'it's business'!
2: The debt was brought at a reduced rate and what we have paid plus the £500 would come to more then what they paid for it.

Any advice would be grateful Thanks :mad:

Mikeone

Hi Payback Time

In answer to your questions, 1) yes, in fact they're *supposed* to make a financial gain from you. I'm not sure in what tone they responded to you when you asked, but they were essentially correct -they are a business and they do it to make money. They are supposed to do so 'responsibly', but they do intend to make money at the end of the day.

2) by 'reduced rate' do you mean the amount that Cabot bought the debt from Beneficial? If so, then it has no impact on the total repayable by the debtor. Again, they're in it to make money.

Hope this clears things up, good luck with dealing with them.

fatbelly

Ask for a statement of account showing how the present balance is calculated.

Then make your full & final offer in writing.