Militant v Cabot (co-starring Next Retail and Moorcroft)

[militantconsumer]

This is the story of a Next Directory account from back in 2002 when a signed Credit Agreement was necessary for enforcement of a debt, but Next hadn't quite realised.

 

The account was defaulted in 2005 and ended up on a payment plan with Gregory Pennington (now "Think Banking").

 

In 2009 we discovered CAG and decided to take control of things. We got rid of Think and got a normal bank account with Yorkshire Bank (no credit check but you get a proper debit card).

 

By this point Moorcroft were dealing with the Next account so we wrote and told them it was in dispute due to the lack of a credit agreement and so we weren't paying. They gave up and passed the account back to Next.

 

We heard nothing for months until Cabot bought the account....

[militantconsumer]

PT has written an excellent guide on how to defend court claims relating to these accounts:

http://www.consumeractiongroup.co.uk/forum/legal-issues/200443-tactics-dealing-next-directory.html

 

So a normal DCA might realise it's not worth chasing somebody for a Next Directory account.

 

But not Cabot.

[militantconsumer]

Numerous nuisance calls and tantalizing letters did not get the result they wanted - i.e. we would not speak to them on the phone.

 

So they sent their standard welcome letter.

 

We replied pointing out:

 

1. Account in dispute, no credit agreement, unenforceable

 

2. Added interest disputed, no right to add interest as no agreement

 

3. No right to pass data to credit reference agencies

[militantconsumer]

Cabot wrote back saying:

 

1. We will suspend action while we get the credit agreement off Next Retail

(good luck!)

 

2. We are obligated to and allowed to trash your credit file if we want

[militantconsumer]

We wrote back with a Section 10 notice and we said:

 

In your letter dated XX November 2009 you state that “Cabot is legally entitled and obligated under the original credit agreement and under the Data Protection Act to process information and also to report to the Credit Reference Agencies” and you also claim that “under the original terms of the credit agreement, which signed with the creditor, consented to information being disclosed to third parties and CRA’s.”

 

However, you admit in the same letter that you do not hold a copy of any signed credit agreement. Please explain how you can support such statements when you have never seen any agreement for this account.

 

It is my position that no credit agreement was signed with Next Retail and that I did not give permission for any company to share data with third parties and Credit Reference Agencies. As you clearly have no evidence to support your actions, I suggest you cease processing this data with immediate effect, and remove any data which you have already lodged.

 

Please consider this letter a Section 10 notice under the Data Protection Act 1998. If you do not comply with this request I may take action against you, including (but not limited to): filing a complaint with the Information Commissioner; reporting this matter to Office of Fair Trading; and issuing a court claim against you for damages.

[militantconsumer]

Cabot replied with a lot of waffle about the Data Protection Act (I will scan up a copy of the full letter in a minute)

 

My favourite bit is where they say:

 

You raise concerns in your letter, that Cabot is not legally entitled and obligated to process data under the terms of the credit agreement, as you believe that no credit agreement exists. Please be advised, a credit agreement (account) in the name of XXXX has been assigned from NR to Cabot. In order for this agreement to exist, a credit agreement (contract) is required to be signed and executed by both parties. It is therefore evident that a credit agreement has been signed, by a XXXX in order for this agreement to exist.

 

I trust I have set out our position clearly.

 

Yes, it really does say that. Spot the flaw in their logic in that one!

[spamheed]

because we have a letter selling us the gold mine, then therefore the goldmine must surely exist

[militantconsumer]

Here is the letter referred to in post #6:

 

[militantconsumer]

I forgot to mention that they have also stopped charging interest, saying that no interest has been charged since they bought the account.

[militantconsumer]

Should we complain to the Information Commissioner about this? Surely they can't just report data to CRAs without an agreement, and when we have specifically asked them not to? They claim an agreement must exist but we have told them it doesn't and never did.

[hungrybear]

Should we complain to the Information Commissioner about this? Surely they can't just report data to CRAs without an agreement, and when we have specifically asked them not to? They claim an agreement must exist but we have told them it doesn't and never did.

 

 

I would send an lba to ken maynard himself, and if they still come back with the same logic then send them an N1 for christmas

[militantconsumer]

Similar thread here:

http://www.consumeractiongroup.co.uk/forum/credit-reference-agencies/232235-dca-reporting-cra-where.html

[militantconsumer]

I forgot to mention a funny part of the story. In the meantime, my friend has opened a new account with Next Directory (she did it accidentally online - she thought she was just buying something but obviously didn't read all the terms and conditions).

 

So we are still in default on the credit files, Next have sold the account to Cabot, but she can run up more debt with Next at the same time!

[militantconsumer]

Cabot send us a new letter every couple of weeks saying that they are still asking Next for the agreement, but Next can't find it.

 

In the meantime they will not chase us for payment.

 

Do you think this means that Next have even lost the application form? Otherwise presumably Cabot would be writing to us trying to claim that the application form was the agreement?

[hungrybear]

Cabot send us a new letter every couple of weeks saying that they are still asking Next for the agreement, but Next can't find it.

 

In the meantime they will not chase us for payment.

 

Do you think this means that Next have even lost the application form? Otherwise presumably Cabot would be writing to us trying to claim that the application form was the agreement?

 

 

YES:D and YES:lol:

[pumpytums]

Next, cannot even send out SAR information they can however keep my £10. My account dates back to 1995, their response to my CCA was that I had previously received it??? I wrote back telling them that the account was now in dispute, and to give the £1 to a charity of their choice. I also stopped making token payments. It was actually fun to make £1 token payments in a childish way as everyone would get bogcroft to issue a letter saying they I should pay through them. Since I have stopped payment bogcroft are threatening litigation "again".

 

So no agreement yet they still registered a default. If I took them to court for failure to provide my SAR information could they counter claim for the account balance?

 

Pumpytums