Hi again, Since the post a letter has been received from Morgan solicitors basically threatening court action. Also it appears that the 2007 £9800 debt is now at £24000 with over £17000 paid off from statements. Can anybody please advise on how to proceed? Many thanks

Can anyone help please with advice?

Hi, I am wondering if anyone out there can give advice on an issue dealing with Cabot. After reading on here about them they seem anything but legitimate! My mother took out a loan in 1989 with a company called Morely for £5000 plus some dodgy insurance which bumped it up to £7080. She ran into difficulties paying it early on and there was an agreement over the phone that £30 a month would be paid. This continued up until 2002 when suddenly Cabot contacted her say she owed in excess of £52,000 with all the intrerest charges. They obviously had bought the debt and as it was secured on the house decided to go for that. Six months of wrangling saw them reduce it as a 'customer benefit' to £35,000. She was also asked to pay £160 a month which she did. Eventually, struggling as a pensioner, she told me about it in 2007 and after a trip to the CAB it was down to £9,800. This still seemed wrong but the CAB said that the best thing was to keep paying it and not to risk losing the house. On re-examining the paperwork I have realised that Cabot have no real idea about what is owed if anything. They claimed that the only way to refinance the loan was to take the original £7080 and put a 5% interest cahrge on it. This took place in 2007. This means the £3,000 plus paid before 2002 and the £7,000 plus paid between 2002-2007 has just been 'lost'. Not right surely? How can you re-finance the original loan from the original 1989 amount? We should have looked at the paperwork more closely but we took the CAB advice which I now realise was not really good enough. Obviously there is also the last four years of payments so in total Cabot have taken about £15,000 on top of the original monies paid. Does this seem wrong to anyone else? We have stopped paying them altogether now and are awaiting a reply to a letter stating we would not be sending any more money, but I fear that my mother has been taken for a ride by the company and as they will not respond to any contact from our solicitor in the recent months and the fos are being very pedantic about this before accepting we have a case, the chances of getting any money back from them is remote. Any thoughts or help would be appreciated