Problems with Cabot Financial & The Funding Corperation

[mbar6844]

Hi, I am new to this site and am looking for some help.

 

Some time ago I had a letter from Cabot Financial saying they had purchased my loan with The Funding Corperation,

(I was up to date with the payments).

 

I continued making my payments to Cabot by DD.

6 months ago I received a phone call from them for a "review" of my financial situation,

as my wife had just given birth to twins they asked if it would help to reduce my payments for a period, to which I agreed.

 

I continued to make the payments by DD, and heard nothing else until

 

last night when they called me stating that although they were happy with the payments I had been making,

there had been a change in the law and as the payments I made were less than the original agreement

the differance was now being classed as arrears.

 

The upshot being that I had to now pay this whole amount in full or they would register a default on my account.

 

If I thought that reducing the payments would put me in arrears I would never have agreed to this.

 

Please advise.

[F_DCAs]

Have you sent in a CCA request to Crapbot? Do they have any proof of debt at all?

[mbar6844]

Not yet Im still in shock, I have worked very hard to clear up my credit file over last 12 months

[Uptotheneck]

Send off the CCA request as soon as possible, there has been no law change as to payments, you can pay them a £1 a month if you wish, if they are entitled to collect.

 

 

Regards

 

David

[mbar6844]

Thanks I will do that straight away

[Pinky69]

Cabot are not adverse to telling lies.

[Seminole]

Yep, typical sort of nasty trick from this company. If they play rough then so should you.

 

CRA them in the first instance and post up their reply minus any personal details.

 

Either now or if they can produce an enforecable agreement, send them a Subject Access Rights notification. In particular you should be looking for a statement of account to check whether they've been adding charges and interest onto your account.

 

Before deciding what to do about the 'arrears' you should do a quick calculation of the total repayments due on the loan against what you've paid in total. In doing so ignore any figures that Cabot have given you. If there is still a balance to pay then you may wish to do so (subject to the response to the CRA and how much you want to avoid a default on the account). If the balance is negative then don't pay them anything for the time being as you're paying charges etc that Cabot have lumped onto the account.

 

Cabot are using the threat of a default to blackmail you. They can't place a default on the account without sending you a properly worded default notice first- if they send you one post it here for checking. They also can't do so if they don't have a valid credit agreement.

 

One final point, don't discuss things on the phone with them unless you're very confident and you record the call. Putting everything in writing is the only way to deal with companies like this.

[mbar6844]

I have just had another phone call from them after I argued the point last night.

 

They are now saying that they have not followed due procedures with my account, and failed to send out any of the letters they should have done, they have now passed it to their legal team?

[Uptotheneck]

I got passed to their legal team........Robinson, Way & co lol

[Seminole]

I have just had another phone call from them after I argued the point last night.

 

They are now saying that they have not followed due procedures with my account, and failed to send out any of the letters they should have done, they have now passed it to their legal team?

 

Rubbish. It's all bluster designed to confuse and bully you.

 

CRA and possible SARN them. If they call you again go through security and tell them that you want all further communications from them to be in writing. Once you've done this, if they call refuse to go through security and put the phone down.

 

You have to wonder where this company finds the cretins it employs. They had a perfectly performing debt and they've completely messed it up for themselves.

[angry cat]

The Cabot legal team is their in-house pimp solicitor:

Morgan Solicitors

[mbar6844]

The whole episode seems extremely strange, I will send of them requests this afternoon. Im wondering now wether Cabot can enforce this debt?

[Seminole]

The whole episode seems extremely strange, I will send of them requests this afternoon. Im wondering now wether Cabot can enforce this debt?

 

Only if they can produce a valid credit agreement.

[Fester Tester]

The sad thing is, if they had left well, alone, I doubt you'd be questioning things, and they would be quite happily taking payments off you.

 

Chances are, they might now have put their chances of seeing ANYTHING else from you ever, into serious doubt.

 

Muppets.

[mbar6844]

They have rung again, and admitted they have made a mistake and they are happy for me to keep making my reduced payments for the next 12 months. They said there had been a clerical error and my account should never have fallen into the "pre-default category".

 

Should I still send the information requests?

[Seminole]

It's up to you. I suggested earlier that you did a back of a fag packet calculation to see whether you might have already paid off the debt. Did you do this?

 

Cabot buy debts for less than their face value and try to collect the full nominal value. Over and above this they tend to add spurious charges and sometimes extra-contractual interest. It's a horribly exploitative business model. My inclination would be to insist on receiving a full statement of account (using the SARN if necessary to check what, if anything, they've done.

 

The CRA is a bit more controversial as it suggests that you may be seeking to avoid the debt (in their view) but, given how they operate, I would encourage anyone dealing with Cabot to make them jump through every hoop imaginable. The country would be a better place if the likes of this company went to the wall.

[veryweary]

How can Cabot threaten a default?, If this account was sold by the Funding Corporation as a debt account, surely it must have already been defaulted before the sale. Therefore Cabot can't issue a second default?

 

Can someone explain if I've got this wrong, as my OH has a sort of similiar issue going on with Cabot over a default notice they've issued.

 

I'd still send off that SAR and CCA request as advised, Cabot are well known for alleged dubious tactics.

[Seminole]

How can Cabot threaten a default?, If this account was sold by the Funding Corporation as a debt account, surely it must have already been defaulted before the sale. Therefore Cabot can't issue a second default?

 

Can someone explain if I've got this wrong, as my OH has a sort of similiar issue going on with Cabot over a default notice they've issued.

 

I'd still send off that SAR and CCA request as advised, Cabot are well known for alleged dubious tactics.

 

Yes, you're correct that you can't have more than default for a single account although it doesn't stop some DCAs from threatening and even placing one. In doing so and with the connivance of the credit reference agencies they can sometimes quite unlawfully blight someone's credit record.

 

In this case however, I don't think the account was already defaulted. The poster said that he had been making full payments until recently and had only then reduced them.

 

Debt Buyers can purchase everything from perfectly performing debt to stuff that is almost statute barred. They can also purchase multiple accounts at the same time containing a complete mix of performance. When this was done between banks it was the sort of thing that led to their near collapse last year and noone really knew what they were getting.

[Ruddockus]

Hi There,

 

Sorry to hear your issues with these muppets. I had a bad car accident a few years ago and lost my job and house as I had 2 years off work and did not have adequate protection.

 

I have been paying Cabot £120 a month for 4 years until recently when I found this forum, I have sent them CCA letters and the account will soon be in dispute. I look forward to them phoning me, I tell them their calls are being recorded and start asking them questions about CCA requests, definition of Statute Barred etc and usually respond with "were not sure about that" Then fly in with the how can you demand money from me when you know nothing about debt law or where I stand legally, they usually hang up and give me a day or 2 then we repeat the procedure!

 

Stuff them, CCA them and put up on this forum and then some one (not me as do not know enough really!) will tell you if enforceable.

 

Do not worry these people are idiots! I just wish I knew this 4 years ago as I nearly had a nervous breakdown due to their harassment.

 

Regards and good luck.

[mbar6844]

Thanks for everyones help, I have sent them a SAR, as I am more than convinced that I have paid back more than the original loan.