Urgent Debt Advice

sourcrates

Just to add to my previous post on this, run of the mill high street creditors don`t usually have the time, staff, or capacity to deal with chasing bad debts, although some might, and if that`s the case, they will write to you as said previously.

Contrary to popular thought, this process is very slow, your accounts may lie dormant on some digital spreadsheet somewhere for months, years even, with no action taken whatsoever, or they may be sold to 3rd party companies, such as Lowell or Cabot etc.

Most will probably find their way to a debt collection company, but whatever is decided, you will be written too.

I`ll say that again, you will be written too, so just bide your time, save your money, and wait for them to contact you, doing this any other way is pointless, because you might set up payment arrangements with the original lenders, only to find that weeks later, decisions have been taken way above the head of the call handlers you made these deals with, and your debts will have been sold, or assigned in line with collection policy, and you`ll have to go through the whole process again.

So don`t do that, nothing silly will happen, wait and see what unfolds.

Callum1510

thanks for that.

I have now received 2 letters from Cabot saying they have bought my debt from Aqua for my 2 credit cards.

Am I best now to contact them to set up a small monthly token payment?

Will Cabot register this debt on my credit file also now? They have a note on the letter advising that they can register this with credit reference agencies.

what happens if this debt is not paid off by the time the default falls off the credit report in 6 years? Can Cabot continue to take payment?

Thanks

Grumpelstiltskin

How old is the Aqua debt? Have you requested and received a valid CCA for it?

Any question of unaffordable debt?

Don't rush into paying and definitely forget token payments.

No they can't force anything after the default has fallen off even if you never pay another penny towards it.

Callum1510

the aqua debt is recent they only registered default in march.

I have not requested a CCA? what is this and is it required?

I have just had the letters off Cabot yesterday for both debts with Aqua.

I have seen Cabot reviews and they are so bad..about people coming to the door etc and multiple phone calls?

What is my next best step now? Now the Aqua default is on credit file and it has been passed to Cabot?

Thanks :)

Grumpelstiltskin

Information about CCAs here.

Debts - why, how & when to ask for the CCA agreement · Debt Camel

It isn't the date of default that matters it is the date you took the original debt out that counts. The older the debt the less likely a CCA can be found.

Don't worry about the threat of people coming to your door, they are only door knockers and you treat them like you would unwanted religious door knockers.

Phone calls just block all of their numbers and you can ask for communication in writing only.

What you have to remember is you are in charge not your creditors.

sourcrates

Cabot are no better or worse that any other debt purchasing company.

They will all go through a similar process of sending out standard collection letters, now only if you continue to ignore them, will they try to send Resolve call or some other tracing agency/debt collector, to your door to try and persuade you to set up a payment arrangement.

I`m not going to comment further on Resolve call and their like, we have hundreds of posts about them on this forum, if you want to know more, just pop their name in the search engine, and see for yourself.

Basically if you set up a payment arrangement with Cabot, all will be fine, with perhaps a yearly review of your finances, which you don`t have to comply with if you don`t want too.

And yes, Cabot can and likely will, put the credit file entry in their name, as long as the date of default tallies, all is well, debts you have been paying will never go statute barred, so after 6 years, if you still have a balance outstanding, it will still be collectable, unless the paperwork cannot be supplied via a CCA request, but that`s another story which Grump has kindly provided you information on above.

RAS

Your debt is a big thing for you. Your creditors don't know you, they've just got computers and robo-callers linked to a few desk staff.

You are just an account number to them, to whom their system churns out automated contacts. They bought the accounts for a fraction of the book value. They'll probably sell your account on at some stage. If you really really don't get in contact, at some point they may send a useless street agent to try and get you in touch.

Ignore calls, texts and emails. All important comms have to be sent snail mail. Unless you get a letter before action, ignore most of them as well. Just file them away.

Callum1510

https://forums.moneysavingexpert.com/discussion/comment/81959687#Comment_81959687

thanks for this

Am I best maybe just setting up a £10 per month to them and then maybe further down line offering them a settlement?

Now the defaults are registered on my credit file I should make some kind of intention to pay?

Grumpelstiltskin

Callum don't rush into making any payments, as I said send for CCAs, if they can't provide them then you don't have to pay anything as they can't enforce a debt with no valid CCA.

When you do come to paying anything is to work out what your total debt is, then work out what you can afford to pay in total each month, then work out what % of the debt total each debt is and pay each debt ( once you are happy it can be enforced ) the correct proportion.

So if your total debt is 20K, debt A is £2k and you can afford to pay each month £200 you pay debt A £20.

Callum1510

https://forums.moneysavingexpert.com/discussion/comment/81959833#Comment_81959833

thanks for this. Is there a format I send for CCA? do they have to comply? What if they cannot provide me with this info? I assume I am sending this to Cabot and not the original lender?

Many thanks for your help