Default Removal

Devonian1

Hi,

I was hoping some of the more experienced members of the forum could shed a little light on my situation for me and hopefully help me out. I was issued a default notice on my credit file in late 2013 which was for 1700 as a result of failing to pay back an overdraft when I switched banks. I moved house and simply forgot about the bank account and received a rude awakening when I registered on the electoral roll at my new house a while later (I worked away for some time) from Cabot Financial demanding money that I owed them. I fully understand that it is my own silly mistake for forgetting about the account however what's done is done. I've tried a couple of the strategies outlined in other places with regards to trying to get them to drop their claim; the 3 letter method being one. However they have been unable to supply any of the documentation I have requested which I believe may be my saving grace as I assume they are unable to take me to court without being able to prove the debt?

So my questions are:

Has anyone successfully managed to get Cabot to remove a default? From reading around, I understand they are one of the more malicious DCAs.

Do I have the grounds to argue with them and likely succeed as they are unable to prove anything?

What would be the best course of action if not? I understand a settled default is just as bad as an unsettled one.

I haven't paid them a penny so far.

Thanks in advance.
Devonian1.

National_Debtline

He Devonian1, welcome to MSE.


If the account only defaulted in 2013 then it is likely they will have sufficient documents to chase the debt, I appreciate they may not be sending them to you at the moment, but that doesn't necessarily mean they don't have them. Depending on how you have requested the information could be part of the problem. You could send the 'prove it' letter or formalise the request for data under a Subject Access Request (might cost up to £10 to do) and ask for more documents to prove the debt is yours. I would just say to tread carefully here, the debt isn't that old.


If they can't prove the debt and therefore, cannot prove the default is accurate data then you could try and complain and ask for the default removed but if there is any other payment history/activity on this debt (on your credit file or elsewhere) then its unlikely to get it removed. An outstanding default is more damaging to your credit file than a settled one. It is true you may not see an instant improvement in your overall credit rating but over time you should. Good luck,


Laura
@natdebtline

Devonian1

Thanks for your prompt reply Laura.

From what I've read about Cabot, they're generally pretty swift to act so I'm slightly puzzled as to why they wouldn't be trying to take me to court as quickly as possible. I think a SAR is the way to go and at least find out what they have. I'm happy to tread carefully, although could you please clarify this so I don't make any mistakes.

With regards to mentioning payment history/activity, what do you mean? As to whether I've paid them anything?

Thanks again.
Devonian1.

National_Debtline

Hello again,


So, as this debt was originally an overdraft the debt fell due from the point where the bank called in the money owed. This is quite hard to pinpoint with overdrafts but the best indicator would be from when debt defaulted - although there is a degree of debate on this point. So, if the debt only defaulted in 2013 they will still have approx. 3 more years to take county court action. I cannot say how aggressively Cabot will do this, as it's at their discretion, but they do still have plenty of time on their side.


Also, because this debt is only 3 years old it will very likely still show on your credit file and your credit file may show activity on this account before you changed banks. The balance of the overdraft may go up and down because of things such as money going in, direct debits, payments to the overdraft - so this would seem show the debt is genuine. These payments are realistically classed as an acknowledgement of the debt which could make this quite hard to challenge.


However, I don't want to discourage you from challenging a debt that you have doubts about and you should always ask a creditor to verify details if you are concerned. But if they can prove all of the above then the debt will still be owed and this delay may cause the balance to increase through interest and charges. So I suppose I am would just suggest you think carefully about what you are trying to achieve. I hope that helps to clarify things,


Laura
@natdebtline