Cabot Financial & Interest Charges on old Vanquis debt

[drob]

Cabot Financial purchase an account i had with Vanquis Bank. The outstanding balance when assigned to Cabot Financial was £438.97.

 

I noticed on Cabot's paperwork that the balance is £460.90 so i wrote to them and asked why the debt had increased.

 

I have today recieved Cabot's response ..........................

 

"Following an assignment on 7th January 2009 from Vanquis of all their rights, title and interest in and to the account in question, we are entitled to charge interest at an equivalent rate to that applicable under the original agreement.

As you will appreciate, although Vanquis may have frozen interest on this account for a period of time it has at no time waived it's right to reinstate such interest; these rights are now vested in us"

Are Cabot allowed to charge me interest????

[mr.ton]

I guess they can add on whatever they want..but it doesnt mean you ever have to pay it.

They are not even legally entitled to a penny off you for the original debt nevermind for any interest.

Tell them to get lost & report them to the OFT/trading standards.

[drob]

Hi mr ton ............... you say that "They are not even legally entitled to a penny off you for the original debt" why?

[drob]

Im still baffles as to how Cabot think they can add interest. The original agreement would have been terminated when i defaulted so how can cabot claim that they are entitled to charge interest under the original agreement?!?!?!?

[B3rty]

Obviously you need to CCA this

[mr.ton]

Hi mr ton ............... you say that "They are not even legally entitled to a penny off you for the original debt" why?

 

Coz only a county court is legally entitled to obtain money off you & there is a proceedure for doing this like having all your outgoings taken into account beforehand etc...

[drob]

Obviously you need to CCA this

 

I have already CCA'd them and they have supplied one

[drob]

Do i write to Cabot and as the to provide documentation to prove at which point i have agreed to pay them interest.

Edited June 26, 2009 by drob

[drob]

Bump

[volvo]

They can add what interest they like, but until they comply with the CCA request properly with a conforming agreement, they cannot ask for payment or legally add charges etc and you do not have to make any payment to them.

 

VOLVO

[drob]

They can add what interest they like, but until they comply with the CCA request properly with a conforming agreement, they cannot ask for payment or legally add charges etc and you do not have to make any payment to them.

 

VOLVO

 

They have supplied a CCA, but surely this will have been cancelled when i defaulted with the OC (Vanquis)

 

This was purchased by Cabot from Vanquis

[volvo]

Hi Drob,

 

Post up the copy of the CCA they have supplied, to let the experts view it, it may not conform to the regulations and may therefore, be uneforceable.

 

I use photobucket, as good as any.

 

 

VOLVO

[drob]

Copies of the CCA

 

http://www.consumeractiongroup.co.uk/forum/attachment.php?attachmentid=7415&stc=1&d=1238078204

 

http://www.consumeractiongroup.co.uk/forum/attachment.php?attachmentid=7414&stc=1&d=1238078151

 

There is also a matter of £72 in unfair charges, Cabot have agreed to write down my account by £72.

[make them aktiv runners]

Cabot Financial purchase an account i had with Vanquis Bank. The outstanding balance when assigned to Cabot Financial was £438.97.

 

I noticed on Cabot's paperwork that the balance is £460.90 so i wrote to them and asked why the debt had increased.

 

I have today recieved Cabot's response ..........................

 

"Following an assignment on 7th January 2009 from Vanquis of all their rights, title and interest in and to the account in question, we are entitled to charge interest at an equivalent rate to that applicable under the original agreement.

 

As you will appreciate, although Vanquis may have frozen interest on this account for a period of time it has at no time waived it's right to reinstate such interest; these rights are now vested in us"

 

Are Cabot allowed to charge me interest????

 

There is nothing in the agreement allowing assignment to take place. However, under common law there is nothing to stop assignment providing the consumer is in no worse a financial postion than pre assignment.

 

Vanquis waived interest. Providing there is no fixed term of interest freeze in the agreement you came to with Vanquis, Cabot cannot change the terms of the agreement post sale. In other words, Cabot should have been aware of the agreement and if not their grievance is with Vanquis not yourself.

[drob]

Many thanks (make them aktiv runners) ................. how should i approach this with Cabot???

[nicklea]

I would disagree with aktiv here. If you have something in writing (which I very much doubt) saying that vanquis are varying the terms of the agreement so that you don't have to pay interest then that is correct. HOwever, if they have just waived their rights for a period of time then they are quite entitled to demand those rights at any time in the future.

 

HOwever, the important thing is the default notice. Did you ever receive a default notice from Vanquis or a letter that the account was terminated? If you did receive either of those then it's game over and there is no way that Cabot can add any extra interest.

 

As you say, the fees are a penalty and you can claim them back from Cabot along with any interest that was applied on them.

[drob]

I would disagree with aktiv here. If you have something in writing (which I very much doubt) saying that vanquis are varying the terms of the agreement so that you don't have to pay interest then that is correct. HOwever, if they have just waived their rights for a period of time then they are quite entitled to demand those rights at any time in the future.

 

HOwever, the important thing is the default notice. Did you ever receive a default notice from Vanquis or a letter that the account was terminated? If you did receive either of those then it's game over and there is no way that Cabot can add any extra interest.

 

As you say, the fees are a penalty and you can claim them back from Cabot along with any interest that was applied on them.

 

I do not have a default notice or a notice of termination from Vanquis. I have a letter from Vanquis statinf that a default notice was issued in April 2007.

 

I did S.A.R Vanquis but no default was in the paperwork.

[nicklea]

It is normal for a defualt notice to say that if you do not pay the arrears by the date shown that the agreement will be terminated.

 

Since the agreement has been terminated they have no right to add any interest

[drob]

It is normal for a defualt notice to say that if you do not pay the arrears by the date shown that the agreement will be terminated.

 

Since the agreement has been terminated they have no right to add any interest

 

Do you suggest i write to Cabot to inform of this???

 

Cabot have offered to write down my account by £72 for the unfair charges, but they have refused to ammend my balance to reflect this. Do you think i should clain for the £72 seperately e.g County Court???

[nicklea]

Cabot have offered to write down my account by £72 for the unfair charges, but they have refused to ammend my balance to reflect this.

 

Sorry I'm confused about what you mean here. What is the difference between "writing down" your account and "amending your balance"?

[drob]

Sorry I'm confused about what you mean here. What is the difference between "writing down" your account and "amending your balance"?

 

 

The account contains £72 of charges that have been applied for late payments. I wrote to Cabot to ask for the £72 back as i believe these charges to be unfair.

 

Cabot replied and said it is nothing to do with them as the charges relate to Vanquis.

 

I then wrote back and told Cabot that as they have purchased the account then they have to refund the £72 charges. Cabot wrote back and agreed to write down the balance of the account by £72.

 

As Cabot are processing my information with credit reference agencies i asked them to ammend my account balance by £72 and record the correct information, they have refused to do this until i have paid the account in full.

[drob]

I have sent Cabot a letter and have told them that Since the original agreement has been terminated by Vanquis then Cabot have no right to add any interest.

 

I have also told them that as the assignment of the account is absolute I intend to reclaim the £72 charges from them