2 years after closing account, NewDay sell debt to Cabot

debtfreewannabe2010

Hi Debtfreewannabes,

I could really do with your help. In 2017 I wrote to NewDay regarding my credit card debt. I apologised for missing the last couple of payments, explained my dire financial situation, and asked that they consider writing off the debt as it was highly unlikely that my situation would improve enough for me to repay the debt, because of long term poor mental health (anxiety and depression). NewDay wrote to me saying they accepted this and were writing off the debt. They said the matter was closed. Unfortunately I have not been able to find this letter so far, which is one thing I need advice on.

Anyway, a couple of weeks ago I received a letter from NewDay saying that they have not heard from me in some time and they have sold my debt to Cabot. The letter included Cabot's details. I called Cabot, to explain that NewDay had closed the account nearly 2 years ago and they have asked me for evidence of this. Is there a way I can request form NewDay copies of our correspondence? I also called NewDay complaints dept., who spoke to me like I'm stupid. The lady I spoke to could not see the letter which I definitely received from them in 2017 and kept telling me I was mistaken.

I've called NewDay twice so far. On the second occasion, they kept transferring me to different departments, the latter of which ended up being the store cards dept. That dept. said they were transferring me to the correct dept. but I ended up being connected to a number which is no longer in use and for which I was charged a fee (!). During the first call to NewDay, the lady (who could not see the letter I was referring to) told me that NewDay will have said they would not pursue the debt but that does not mean they would not sell the debt to someone else. I must have the letter somewhere but so far I have not been able to find it.

Can I ask NewDay to provide a copy of this letter? How about a copy of the letter I sent them? Receiving the new letter and the way I was fobbed off on the phone really, really upset me. I struggled not to cry on the phone. This is causing me immense anxiety. I would be so grateful for your advice. Thank you in advance if you reply! Best wishes.

Willing2Learn

Hi, Sorry to read about the impact this has had on you emotionally.

I believe you could try a Subject Access Request (SAR), requesting evidence of all correspondence from 2017.

How is the account recorded within your three credit files?

sourcrates

Hi,


Please do not keep ringing these people, all you get are call handlers who follow a script basically, you cannot get to speak to the dept you need, you can only do this in writing.

A SAR is a good starting point, but it would be unusual for a credit card company to agree to write off a debt straight away, it would be helpful if you could find that letter, although i`m guessing Newday will just say it was an error on their part, and dismiss it outright.

So am i right in thinking you not currently working due to mental health problems, do you get any benefits at all ?


How much is the debt Cabot are chasing you for ?

debtfreewannabe2010

Willing2Learn wrote: »

Hi, Sorry to read about the impact this has had on you emotionally.

I believe you could try a Subject Access Request (SAR), requesting evidence of all correspondence from 2017.

How is the account recorded within your three credit files?

Thank you so much for your reply!

I have only checked my credit report via Noddle and there is no sign of the credit card on there now. I don't know if that counts as one of the main credit files. I will find out how to check the others. It's been a long time since I did, because I have free access to Noddle. I will look into 'Subject Access Request'. Thank you so much again.

Willing2Learn

As well as Noddle, the other two credit files are also available for free.

Experian report is available via MSE Credit Club.
Equifax report is available via ClearScore

Sourcrates asks a good question. Are you currently working or are you unable to work due to your current mental health condition? And are you currently in receipt of benefits?

debtfreewannabe2010

sourcrates wrote: »

Hi,


Please do not keep ringing these people, all you get are call handlers who follow a script basically, you cannot get to speak to the dept you need, you can only do this in writing.

A SAR is a good starting point, but it would be unusual for a credit card company to agree to write off a debt straight away, it would be helpful if you could find that letter, although i`m guessing Newday will just say it was an error on their part, and dismiss it outright.

So am i right in thinking you not currently working due to mental health problems, do you get any benefits at all ?


How much is the debt Cabot are chasing you for ?

Thank you so much for your reply. I'm sorry for the delay in my response but the page didn't update so I've only just seen it. I am not working and I am receiving benefits of ESA, PIP and Housing Benefit. Cabot haven't started chasing me yet but the debt is approx. £4000. I had the NewDay card for a long time and paid off at least the minimum each month for many months before I got into financial difficulty. The interest rate was very high and I am sure I paid the original debt off several times over. There had been some correspondence to and fro before I asked them to write off the debt. I won't be calling them again. I intend to keep all future communication written. Many thanks again for your help!

debtfreewannabe2010

Willing2Learn wrote: »

As well as Noddle, the other two credit files are also available for free.

Experian report is available via MSE Credit Club.
Equifax report is available via ClearScore

Sourcrates asks a good question. Are you currently working or are you unable to work due to your current mental health condition? And are you currently in receipt of benefits?

I have checked all three now and the credit card debt does not show on any of them. However, my credit score varies a lot between the three. Is that normal? Thank you again so much for your help!

John_G_Jones

Writing off a debt does not necessarily stop you owing it. Writing off is an accountancy term which means that they stop recording it’s value as an asset. They can still realise some value from it by selling it on or deciding to take action themselves.

debtfreewannabe2010

John_G_Jones wrote: »

Writing off a debt does not necessarily stop you owing it. Writing off is an accountancy term which means that they stop recording it’s value as an asset. They can still realise some value from it by selling it on or deciding to take action themselves.

Thanks for your reply! I understand that but they stated that the account and the matter itself were closed and that was in reply to my letter explaining my situation and asking them to consider closing the account. It all sounded very much final and I have not heard from them in nearly two years. They didn't say anything about the possibility of selling the debt. It has been very confusing and upsetting to hear from them after all this time. The debt is not on my credit reports. It's all very odd. Thanks again for your reply.