Cabot Financial... Do I pay?

mickymac101

Hi guys,

This is my first post .

I had debt owed to RBS and this was defaulted (I think in 2012) cabot financial bought the debt and have started hounding me. I think this might be because it's been almost 6 years from the default. They only have my address and haven't provided me with the original RBS account number, just a figure of how much I owe them.

They are not currently registered on my credit file.

I am going to apply for a mortgage in the new year and am worried they will add a default to my credit file if I don't call them to agree on a payment?

Can they just add a default out of the blue?
Can I refuse to pay them after the 6 years is up?
Will they stop sending me letters after the 6 years is up?
What should I do to make sure they don't mess with my mortgage application.

Thanks in advance!

[Deleted User]

Send them a prove-it letter to confirm you owe it and when it defaulted.

If it was over 6 years ago then they cannot pursue a CCJ against you but they may still hound you for the debt.

If it’s over 6 years as well they can’t add anything to your credit files about it

Willing2Learn

mickymac101 wrote: »

...They are not currently registered on my credit file.

I am going to apply for a mortgage in the new year and am worried they will add a default to my credit file if I don't call them to agree on a payment?

Can they just add a default out of the blue?
Can I refuse to pay them after the 6 years is up?
Will they stop sending me letters after the 6 years is up?
What should I do to make sure they don't mess with my mortgage application.

What exactly does the letter say that they have sent you?

Is the RBS account registered with any of the three CRAs (you say you've checked your file, but did you check all three?).

Any default that is marked should be dated to when you were 3-6 months in arrears.

The debt becomes Statute Barred [STRIKE]six years from the date of default or [/STRIKE]six years from when you last acknowledged the debt. Once it is Statute Barred it becomes unenforceable (unless they make a CCJ against you before the six years expires)

Edit: And welcome to the forum mickymac101

National_Debtline

Hi mickymac101 and welcome to MSE,


Under the Limitations Act 1980 it states that if there has been a 6 year block of time since the debt has fallen due, with no written acknowledgement or payment and no court action started then the debt may be statute barred and no longer enforceable in the county court.


The 6 year clock doesn't actually start from the default date, but from when the debt falls due. For things such as credit cards or loans, there are regular monthly payments so it is easier to determine. The start of the 6 year period would be from the last payment/ written acknowledgement made or from when the last payment was due and missed - whichever is the later. With overdrafts it can be harder to establish because it would be from when the banks calls in the overdraft, and although the default date on the credit file may not completely correspond to this action, it is a good indicator of the approximate start of the limitation period.


It would be up to the creditor to prove a debt is not statute barred, so you could either send the prove it letter, or the limitations letter (recorded delivery) and see what response you get. If you send the prove it letter, they need to prove the debt is yours. With the limitations letter they need to prove it is enforceable. If they are unable to prove the debt is enforceable, they should stop contact and if they don't you could raise a complaint.


Willing2Learn raises a good point that any default should be added in a timely manner of when the debt first fell behind, so it is unlikely they would be able to add anything now.


Laura
@natdebtline