Cabot financial 75% discount offer.

cherry545

Hi, one of my creditors sold my debt of £5000 to cabot financial.  (a chunk of this amount is made up of charges/interest penalties).  I defaulted on my account in November 2016.  I believe it will be statuebarred this coming November.  I have ignored their correspondence.  a few months ago someone from Cabot came to my house while I was out.  I live in Northern Ireland.

Last week I spoke with a representative from Cabot and he was quite agressive on the phone so I hung up.  They have now posted out a letter offering 75% discount with the final amount being £1245.  This is a great reduction.  However it will take me months to pay this off as I have other debt.  

Can you advise should I enter into an agreement with them to pay it back or let it go to November when it will be statuebarred.  I am wary of entering into an agreement with them incase they sell the debt on and I am harrassed again by another debt company.

DjangoUnchained

i would imagine that they offer that level of discount because they know they cant enforce it due to lack of paperwork and they know that they are unlikely to get it befor it becomes statute barred.. I wouldnt talk to them on the phone, let them write to you. Im in a similar situation with pra, they have been trying to call me nearly everyday for the past year, ive blocked their number so they can only leave messages to call them, which i wont. in a few months ittl be statute barred.

fatbelly

Sounds like this one is going statute barred unless they can trick persuade you to acknowledge the debt by payment or in writing.

You should continue to ignore them but if you get a 30-day letter check Debt Camel for how to reply to it

stewartwilliams

What do some companies get out of all these phone calls and letters anyway?
If they're chasing  say £1k of debt and call every day, write numerous times a month etc., surely the cost in paperwork, envelopes, postage, time etc. must be far more than what they hope to get back sometimes?

Rob5342

stewartwilliams said:

What do some companies get out of all these phone calls and letters anyway?
If they're chasing  say £1k of debt and call every day, write numerous times a month etc., surely the cost in paperwork, envelopes, postage, time etc. must be far more than what they hope to get back sometimes?

They have automated systems to harass people, there is obviously a cost to running them but.once running them the cost of adding an extra person isn't much. Extra emails won't cost them anything and they'll have an inclusive calls package for phone calls. A stamp costs 75p, so if they write every two weeks for 10 years it will cost less than £200 which would be well worth it if they got £1000 back. A lot of people will get worn down by the constant harassment and pay to get them off their backs, so it pays for the companies to keep it up.

DjangoUnchained

Rob5342 said:

stewartwilliams said:

What do some companies get out of all these phone calls and letters anyway?
If they're chasing  say £1k of debt and call every day, write numerous times a month etc., surely the cost in paperwork, envelopes, postage, time etc. must be far more than what they hope to get back sometimes?

They have automated systems to harass people, there is obviously a cost to running them but.once running them the cost of adding an extra person isn't much. Extra emails won't cost them anything and they'll have an inclusive calls package for phone calls. A stamp costs 75p, so if they write every two weeks for 10 years it will cost less than £200 which would be well worth it if they got £1000 back. A lot of people will get worn down by the constant harassment and pay to get them off their backs, so it pays for the companies to keep it up.

once you realise this its very easy to deal with. I have been phoned practically everyday for over a year by pra group. Does it bother me ? not in the slightest. The number is blocked so all they can do is leave a message for me to call them back, which i never will. In fact i find it reassuring as as long as they keep trying to phone me i think they cant take it any further. They have failed in over 5 years to produce the requested credit agreement. only a few months now and it will be statute barred.