Cabot financial

icklesurfer

Hi. I've just been offered a reduced settlement on an old debt by Cabot that i want to take. Does anyone know if they allow you to pay the reduced settlement in installments?

Willing2Learn

Before you make any settlement payment, make sure you have it in writing from Cabot that they:

• confirm that the money will be accepted as a Full & Final Settlement
• will not chase or sell the remaining debt
• will update your credit file(s) to show the account has been settled and closed with zero balance.

I **think** that Cabot may accept the settlement to be spread across 2 or 3 payments. I would phone them to check though...

icklesurfer

Willing2Learn wrote: »

Before you make any settlement payment, make sure you have it in writing from Cabot that they:

• confirm that the money will be accepted as a Full & Final Settlement
• will not chase or sell the remaining debt
• will update your credit file(s) to show the account has been settled and closed with zero balance.

I **think** that Cabot may accept the settlement to be spread across 2 or 3 payments. I would phone them to check though...

I would, but I'm very close to having this statute barred. (2 months out) I'm afraid that if i get in touch its an acknowledgement of the debt and the statute barred status goes away.

Willing2Learn

I'm confused then. If the account is about to become SB then why are you prepared to make an F&F settlement?

Just checking, to be SB you have to be able to say YES to the following four points:

• it had been more than six years since you last made a payment; and
• the creditor has a cause of action more than six years ago; and
• you haven’t acknowledged the debt in writing during this time; and
• the creditor hasn’t already gone to court for a CCJ.

The cause of action would be the date of default.

icklesurfer

Yes, I get why it's unusual. But doesn't this debt stay on my credit file even if it's statute barred? Meaning that until it gets paid then i'm essentially staring at this forever.

The final payment i made on the loan was 6 years and 10 months ago and that payment bounced so it's been roughly 6 years and 11 months since I paid anything off this debt.

Here's my thinking; the default was registered a little after the last payment. If i pay a F&FS then in a few months this whole thing leaves my credit file for good.

Pinkydoodah

The answer to your first question is, yes, they will accept the F&F over three monthly payments, which is how I did it.

Willing2Learn

icklesurfer wrote: »

Yes, I get why it's unusual. But doesn't this debt stay on my credit file even if it's statute barred? Meaning that until it gets paid then i'm essentially staring at this forever.

An account is automatically removed from your credit files, six years from the date of default. The account will be removed, even if there has NOT been a F&F settlement. If you are saying the account defaulted over six years ago and your last payment was over six years ago, then the account is already SB. The account should also have been removed from your three credit files. You should complain to the CRA(s) that are still showing the account on your credit file.

icklesurfer

Pinkydoodah wrote: »

The answer to your first question is, yes, they will accept the F&F over three monthly payments, which is how I did it.

Did you need to call them or was this arranged via their website?

SusieT

icklesurfer wrote: »

Yes, I get why it's unusual. But doesn't this debt stay on my credit file even if it's statute barred? Meaning that until it gets paid then i'm essentially staring at this forever.

The final payment i made on the loan was 6 years and 10 months ago and that payment bounced so it's been roughly 6 years and 11 months since I paid anything off this debt.

Here's my thinking; the default was registered a little after the last payment. If i pay a F&FS then in a few months this whole thing leaves my credit file for good.

If this is correct and
1, the default was around 6 years and 8 or 9 months ago
2, you have not paid anything since
3, you have not aknowleged the debt in any way since then

It will already be statute barred as the 6 years is up.

fatbelly

I'm with the others that this one sounds statute barred and you can leave it alone. Why do you think there are 2 months to go?

One other point, which may be useful for others dealing with enforceable debts, is that you were worried about acknowledging the debt by phoning them. An acknowledgement has to be by payment or in writing so you can phone. If writing to negotiate head your letter 'without prejudice' so that it cannot be used as evidence of acknowledgement.

icklesurfer

fatbelly wrote: »

I'm with the others that this one sounds statute barred and you can leave it alone. Why do you think there are 2 months to go?

One other point, which may be useful for others dealing with enforceable debts, is that you were worried about acknowledging the debt by phoning them. An acknowledgement has to be by payment or in writing so you can phone. If writing to negotiate head your letter 'without prejudice' so that it cannot be used as evidence of acknowledgement.

That's really helpful. Thank you