Cabot Financial - Default Notice

deborj

I have a Barclaycard and I was struggling to maintain payments. In March 2010 I contacted Barclaycard asking them to assist me and we agreed a repayment plan of £10.76 a month.

In December 2011 the account was sold to Cabot Financial and they agreed to honour the previous arrangement I had with Barclaycard.

I've maintained payments every month but in September 2014 Cabot Financial issued a default notice. I questioned the default notice because I thought that my account would of had to have defaulted before the account was sold? Cabot Financial have stated that Barclaycard were able to sell the debt whether it is in a default or pre-default status. Is this correct? Any advice would be grateful.

I'm not questioning that a default shouldn't have been issued, but I'm surprised that one wasn't issued when the reduced monthly repayment arrangement was first put in place.

grumbler

deborj wrote: »

...in September 2014 Cabot Financial issued a default notice...

What does this actually mean and what do they want?

AFAIK, DCAs can't report to CRAs if this is what you are worried about.

deborj

Thank you for your reply.

I just mean can Barclaycard sell my account without it defaulting? I just thought a default would have been issued in December 2011 not nearly 3 years later.

rizla_king

No accounts do not have to be defaulted before they can be sold. Banks even sometimes sell them between themselves like where Barclay took over all the old Goldfish and Morgan Stanley ones so people ended up with a barclaycard instead. Same law that allows selling accounts applies whether there is a default or not.