Cabot Financial

jackjones01

Hey everyone, I’m facing a bit of a moral and financial dilemma and could really use some advice.

I have a £5,700 debt with Barclaycard, which has been sold to Cabot. I haven’t made any payments on this account since 29th September 2020. Since I live in Scotland, I understand the debt would be extinguished (become statute-barred) in October 2025.

 Here’s the tricky part: I’m planning to apply for a mortgage around September/October 2025. I’m worried that if Cabot ramps up their collection efforts before then (letters, calls, potential legal action), it could impact my chances or even prompt me to make a payment that would reset the clock on the debt.

Even if they do a debt collection search at this stage it will hinder my mortgage application.

I’m torn between two options:

* Sit tight and hope they don’t become more aggressive with their collection efforts.

 * Set up a small payment arrangement to keep them off my back, but risk acknowledging the debt and delaying the statute-barred date.

I want to do the right thing but also need to think about my future plans. Has anyone been in a similar situation?

Additionally, even though I previously defaulted with Barclaycard, they’ve issued me a new credit card within the past year. I’m concerned that if I submit a CCA request to the DCA, it might raise a red flag and prompt them to review or even close my current credit card.

tigergambit

I think I would sit tight and see what happens. Don't contact Cabot - it's up to them to make the next move imo. 

fatbelly

The debt is with Cabot now. Barclaycard have washed their hands of this.

Your understanding of Limitation in Scotland is correct and there is a good chance you will get this to October without them starting a court claim.

If you were to receive a preaction letter (standard forms, 30-day limit) then you should respond.

It is not likely that this matter will have much effect on your mortgage application. It may already have dropped off your file, but you should check what is being recorded.

jackjones01

fatbelly said:

The debt is with Cabot now. Barclaycard have washed their hands of this.

Your understanding of Limitation in Scotland is correct and there is a good chance you will get this to October without them starting a court claim.

If you were to receive a preaction letter (standard forms, 30-day limit) then you should respond.

It is not likely that this matter will have much effect on your mortgage application. It may already have dropped off your file, but you should check what is being recorded.

Yes the debt dropped of my credit file in October 2023. They have started e-mailing me about the debt about every 2-3 weeks. I’m worried they might do a debt collection search on my credit file which would hinder my mortgage application. 

fatbelly

It wouldn't.

And you can ignore emails

Anything important comes by post.

ManyWays

 * Set up a small payment arrangement to keep them off my back, but risk acknowledging the debt and delaying the statute-barred date.
A small payment arrangement would acknowledge the debt and reset the 5 year clock to becoming statute barred, this is definite, it's not a risk that may happen.
And it would also jeopardize a mortgage application as the lender would see the payment to the debt collector on your bank statements.

jackjones01

ManyWays said:

 * Set up a small payment arrangement to keep them off my back, but risk acknowledging the debt and delaying the statute-barred date.
A small payment arrangement would acknowledge the debt and reset the 5 year clock to becoming statute barred, this is definite, it's not a risk that may happen.
And it would also jeopardize a mortgage application as the lender would see the payment to the debt collector on your bank statements.

The money would come out of an account they wouldn’t need to see. 

jackjones01

Ironically today a letters come offering me 75% off. 

RAS

It's your choice essentially, but you might want to just sit tight. 

jackjones01

I just thought I’d share an update on this matter. I’ve received a letter saying my accounts been closed as the debts now extinguished under Scottish law. 

tigergambit

jackjones01 said:

I just thought I’d share an update on this matter. I’ve received a letter saying my accounts been closed as the debts now extinguished under Scottish law. 

Great news! Well done and thanks for sharing.  Hope your mortgage application goes well.