Cabot Financial Unrealistic Repayment Request

chris27

Some back ground to this first off.

I have an historic credit card debt of 15+ years that I had a repayment plan setup on for £20 a month and it was ticking along.

18 months ago the debt company got bought by another one. My Agreement was scrapped and I spent another 6 months going backwards and forwards with them.

They ended up passing the debt back to Natwest who then passed it on to another collection agency. Thus the pattern repeated.

This went on twice more before landing with Cabot Financial.

I've filled out a budget planner off their site which left me with £122 a month left over to actually be able to have somewhat of a life all be it not that exciting for £30 a week.

Cabot are requesting that I pay back either £101 or £76 a month on the debt.

My question is, is this unreasonable in that it leaves me with nothing to be able to have any sort of life ?

National_Debtline

Hi Chris27,


It may help if you can post your SOA to assist us in answering this question properly. There are several scenarios to consider to try and help you. First of all, a budget should allow for living costs, which include rent/mortgage, council tax, gas, electric, food, phone, travel, clothes, socialising and entertainment (within reason), hobbies, etc. Everything should be detailed and budgeted for, because all of the remaining money is available for debts.


If this is your only debt, then they should receive 100% of your surplus money. If you have offered less than this, that could be the problem. If you have multiple debts, then this debt would receive a fair proportion of your surplus, but again the full surplus must be used to repay debts (because everything else should be outlined in your budget). If they are already receiving a proportioned offer, but refusing then you will need to be firm and stick to your guns. You should send the payment each month so that you start to make some impact on the debt even if it hasn't been formally accepted.

However, one other issue could be that if your figures for living costs exceed the parameters that are deemed acceptable, it may mean you are spending more than you should be in some areas and may need to consider cutting some things back. You can find the SOA sticky on the DFW board, good luck,


Laura
@natdebtline

January2015

My first thought is have you submitted a CCA request for this debt? It could potentially be unenforceable being as it was taken out so long ago.

I wouldn't pay anything further until they have provided enforceable CCA documentation.

Even if it turns out the CCA documentation makes this debt enforceable, only pay what you can afford. Make your £30 pm payment and tell them that's all you are able to reasonably afford. They can't take what you don't have. You are being reasonable and making payment. That's what I would do anyway

sourcrates

Look on National debt line website for CCA template letter and further information.

chris27

Thanks for the replies everyone.

I'd not even thought about if the debt is enforceable due to age or not. :beer:

Justice13075

I have been living in Spain for the past 16 months and Cabot is chasing me for a £2100 outstanding on a loan from the UK. I offered £600 to settle the account but they want £1900 I increased the offer to £800 but they still insist on £1900. At the minute they will get nothing so why are they being hard headed. Any advice appreciated.

sourcrates

Justice13075 wrote: »

I have been living in Spain for the past 16 months and Cabot is chasing me for a £2100 outstanding on a loan from the UK. I offered £600 to settle the account but they want £1900 I increased the offer to £800 but they still insist on £1900. At the minute they will get nothing so why are they being hard headed. Any advice appreciated.

Hi,

Simple maths, they buy the debt for next to nothing, and chase you for the full amount.

They have certain discretion regarding discounts, but you may find the longer they have this on their books, the better the offers will be.

If they make nothing on this one, they will on the next, for what they pay for them, they can afford to hold out.

Justice13075

Yes but I am in Spain they don't know my address surely you would think they would accept £800 for a debt they probably paid £200 for. At the moment they will get nothing.