Cabot Financial - what, when, how, why!??!?!?

Ducktheduckling

Morning,

I hope you are well whilst reading this and I appreciate anything you can suggest for this predicament I am in.

Since approx. Jan 18, Cabot have sent a few letters demanding payment for a 4-digit debt!
I have no recollection of this debt, but they have sent me statements from 2009 - 2017 where I have been paying various amounts to Apex (I was making small token payments for 6 years) a lot has happened since then, I was a bad teenager and ran a lot of debt up, but I cannot remember why I was paying this debt.

I asked Cabot to prove the debt is not statue barred by providing a copy of the original agreement and they have wrote back saying as I have made payments this is classed as acknowledgement so they will continue to enforce payment.

Now I am in a predicament because I admit I was dumb and paid Cabot a token payment as soon as I saw the first letter because I was frightened.
I know this is now acknowledgement but I do not know what to do next. I must note that I have already asked Cabot to write the debt off due to personal circumstances (health) and they refused but offered 20% off.
Do Cabot have a leg to stand on if I refuse to pay?
Should I send them a "prove it" letter?

All previous experience would be helpful as I am 100% frightened and worried about what they will do next.

Many thanks in advance.

unicorndeva

Your first step would be to ask them to provide a copy of your original agreement and send a £1 fee for this. Whilst they are trying to find the agreement they cannot chase the debt (I think... that's what happened with ours). I'm going to send you a message too.

Willing2Learn

Hi, I don't believe the debt is statute barred as you have been paying the debt over the years with your last payment quite recently.

From your post it seems you are not in a financial position to make a full and final settlement offer. If it were me, I would agree to some sort of repayment plan. I would do all communication in writing only. If you decide to ignore the debt, then it is possible that Cabot may seek legal enforcement, although this is a slow process.

Edit: And welcome to the forum

Ducktheduckling

Hiya,

Thank you so much I will do this.

I tried to use the link on your message but it doesn't work
The forum sounds excellent though so please let me know what it's called

National_Debtline

Hi Ducktheduckling


You could use the prove it letter if you don't believe it is your debt. However if Cabot have sent a statement showing you were previously paying Apex for this debt, it sounds like you probably do owe it. The chances are Cabot have purchased the debt from Apex.


You could instead make a request under the Consumer Credit Act (CCA) for a true copy of the credit agreement. As unicorndeva says, you will need to send a £1 fee with your request and they will have 12 working days to comply. If they can't provide a true copy the debt could become unenforceable. That means you still owe it but the Cabot should not be able to obtain a CCJ until they have provided the information.


You can find more information on this, including a link to a sample letter, here https://www.nationaldebtline.org/EW/factsheets/Pages/getting-information/credit-agreement-advice.aspx.


Good luck with it all


Susie
@natdebtline

Just_Di

Ducktheduckling wrote: »

I have no recollection of this debt, but they have sent me statements from 2009 - 2017 where I have been paying various amounts to Apex (I was making small token payments for 6 years) a lot has happened since then,

I asked Cabot to prove the debt is not statue barred by providing a copy of the original agreement and they have wrote back saying as I have made payments this is classed as acknowledgement so they will continue to enforce payment.

Now I am in a predicament because I admit I was dumb and paid Cabot a token payment as soon as I saw the first letter because I was frightened..

Who was the original creditor of this debt and what was the product, such as a credit card, loan, overdraft or catalogue account etc. as this may give some indication of what may lie ahead?

The name of the original creditor should be on letters from Cabot (usually in the column on the right hand side).

Can you remember whether you may have had PPI on that original account if it was a credit card or loan?

Can you also just clarify when you made your last payment to Apex and was that six years before you made that panic payment to Cabot? It’s unlikely but I thought it best to check in case the debt was Statute Barred before Cabot came on the scene.

Di

sourcrates

Hi,


Cabot are one of the major players in the debt purchasing industry.

They buy up large portfolios of bad debts from the banks, you say you were making token payments to this account up to 2017, therefore they are correct in there assumption, that it will not be statute barred.


However, assuming this account was a credit card or a loan product, you are entitled at any time, as long as a balance remains on the account, to ask for a copy of your original credit agreement (CCA request), under sec 77/79 CCA 1978.


Send this too them :


https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx


send along with the £1 statutory fee (postal order is best) and they must comply, as this legislation forms a part of your statutory rights.

Now they may or may not be able to produce what is required by legislation, but at the very least, it will buy you some time, as it takes approx 2/3 months normally to be processed, and generally accounts are put on hold until then.

Ducktheduckling

Thank you all soooo much.
Your words are very supportive and I will follow some great advise.

Thank you again.

Ducktheduckling

sourcrates wrote: »

Hi,


However, assuming this account was a credit card or a loan product, you are entitled at any time, as long as a balance remains on the account, to ask for a copy of your original credit agreement (CCA request), under sec 77/79 CCA 1978.


Send this too them :


send along with the £1 statutory fee (postal order is best) and they must comply, as this legislation forms a part of your statutory rights.

Now they may or may not be able to produce what is required by legislation, but at the very least, it will buy you some time, as it takes approx 2/3 months normally to be processed, and generally accounts are put on hold until then.

Just wondering, if Cabot cannot produce the original credit agreement, what happens next?

Just_Di

Ducktheduckling wrote: »

if Cabot cannot produce the original credit agreement, what happens next?

If a firm is unable to comply with your CCA Request they should write and tell you the debt is unenforceable. That's spelt out in the FCA Handbook CONC 13.1.6.

Some do and some don't, but they should >

Failure to comply
CONC 13.1.6G02/11/2015
RP
(1) Failure to comply with the provisions means that the agreement becomes unenforceable while the failure to comply persists, and the courts have no discretion to allow enforcement.
(2) In such cases, a firm should in no way, either by act or omission, mislead a customer as to the enforceability of the agreement.
(3) In particular, a firm should not in such cases either threaten court action or other enforcement of the debt or imply that the debt is enforceable when it is not.
(4) The firm should, in any request for payment or communication relating to a payment (other than a statement issued in accordance with the CCA or regulations made under it which does not constitute or contain a request for payment) in such cases, make clear to the customer that although the debt remains outstanding it is unenforceable.


Di

Ducktheduckling

Thank you Di,

Does this essentially mean that if they cannot produce the original contract that I can refuse to pay and ask for the account to be closed?