Help Please.... Cabot Finance

[ojpyro]

Good morning,

 

Sorry if I ramble on a bit, this is my first post on this site and I want to explain myself as much as possible. I am looking for some guidance, help or any useful information that may be able to help me.

 

Approx 6-7 years ago, I applied for an Abbey (now Santander) unsecured loan as I was a staff member and was put on one of their staff rates. When I was made redundant by Abbey, I defaulted on my payments and subsequently, the debt was sold to Cabot Financial, this was around 4 years ago. I initially had a payment plan in place via the CCCS, paying £15 per month to my creditors and when I returned to work, my payments went up.

 

For reasons unbeknownst to me, I received a letter from the CCCS were no longer able to assist me and that's when the trouble started with Cabot (my other creditor - Robinson Way - have been paid in full).

 

At this point, I should tell you that my outstanding balance owed to Cabot is £7,680.00. After going through an Income & Expenditure form online, I made an offer of £60.00 per month, which is all I can realistically afford and they seemed happy to accept this for a period of 6 months. (By my reckoning this is just short of 11 years to clear the debt)

 

Just last week, they telphoned me for a review of my circumstances (which haven't changed) and asked if I could make a lump sum payment, offering me a discount in the process, although a discount figure was never mentioned. When I informed them that I was unable to pay any form of lump sum payment, they suggested that they could drop the debt to £5,500 if I paid over the next 3 months. Again, there is no way I can get this sort of money together. The chap then said that if I increased my montly payments to £128.00, the debt would be cleared in 5 years. A great thought, but I am in no position to pay this sort of money each month.

 

Then they dropped the bombshell that if I didn't offer them some sort of increase in my payments, they would be commencing legal action. This completely knocked the wind out of my sails and, in a blind panic, I offered them £61.00 per month (it's an increase, after all). They once again agreed to this request and marked me down for a review in 6 months. I am now literally losing sleep over this "legal action" that they could be taking against me. My ultimate questions are:

 

1) Are they using scare tactics to try and get more money out of me by threatening legal action, if so. How can I get them to stop as I feel like I'm on the verge of a breakdown. If not, what legal action are they speaking about? I am now terrified that I am going to have bailiffs knocking on my door to take my families possessions away.

 

2) Do you think it would be beneficial to go down the IVA/Bankruptcy route?

 

I would like to make you guys aware that I do not dispute this acount in any way, shape or form, I know I owe the money, but since taking out the loan, I have been made redundant twice, had 2 children and am now earning approx £5,000 a year less than when I took out the loan. I am trying to pay this off as quickly as possible but my circumstance only allow me to pay this small monthly payment.

[citizenB]

Well now, that is simply blackmail isnt it.

 

You have made it quite clear that you are unable to accept any of their offers so they threaten you with court ? I am sure a Judge will be well pleased with that.

 

When you took out the loan was there any PPI attached to it ?

 

Are there any penalty charges that you can reclaim inorder to reduce the amount owed.

[ojpyro]

Hi, thanks for your fast response. I am note sure whether it had any PPI or penalty charges to be honest. I was very young (and looking back, very stupid) when I took out the loan. How could I go about finding this information out?

[BRIGADIER2JCS]

Hi Welcome to CAG.

Scare tactics yes!!These debt collection agencies love this method

offering a discount often indicates there may be a problem in paperwork

for the a debt.

There is a long way to go before any bailiff involvement can happen.

1. They must issue a County Court Claim#

2.They must win and get judgement.#

3.You must fail to keep to the judgement order~

4. They have to apply to the court for a warrant

for bailiffs to seize goods.

 

Given that you have offered and have made payments

that you can reasonably afford a Judge would be very,very

unlikely to order you to pay any more and may even order

less.

 

I would perhaps write to the creditors/DCA and tell them this.

 

To The Compliance Manager

 

xxxxxxx Dedt Collection

 

Ref:xxxxxxxx

 

Dear Sir or Madam,

 

I refer to your recent contact regarding the debt for £xxxxxx on which

I am making payments of £xx per month, this is the amount I can reasonably

afford to pay without causing hardship to myself and my family.

 

As to your threat of ''legal action'' I am sure you are aware that a Judge

would not order me to pay any more than I am paying now and given the

current financial climate may even order me to pay less.

 

I would suugest that your company should continue to accept the payments

at the current level to save not only the stress and harassment you are currently

causing me, but also to save court time and unecessary costs.

Send it RD.

[citizenB]

You can find out whether PPI was attached to the loan by obtaining statements/other documents from the Original lender. You would send a Subject Access request - it will cost you £10.00 - they have 40 calendar days in which to respond. You will find a draft letter in the CAG libray.

[PGH7447]

and finally, stop doing any business on the phone to them, from now on everything in writing, if they phone dont answer the security questions just say in writing and put the phone down

[Happyhippy1959]

hahaha,, good out crabot, still trying that old chestnut..... done it too me on the only one that is enforceable, told em go ahead see you in court..... Now, that my circumstances changed due to getting out of a mortgage and secured loan I reviewed my IE, yes I review not them !!!!! and I found I could offer a small increase to all my creditors with enforceable agreements.. so from me £1.00 all are now getting a fiver.... As PGH say's stop doing business on the phone. Though I have an old mobile that I gave to my son who now has a new one. I put that number down on my correspondence and yo and behold Cabot the vultures raise there head...Now I am confident thanks to these guys on CAG, oh give a dog a bone and they think they can have the whole carcus, well cut a long story short it was PUT UP OR SHUT UP, that is what I can afford that is what your getting, if you want to risk it with a DJ be my guest... three months ago nothing since but a thank you letter for being a responsible debtor. ha ha ha.... Yes I owe it, I will pay it, if I cant pay it I tell them..

 

NOW, WORK OUT WHAT YOU CAN AFFORD AND TELL EM IN NO UNCERTAIN TERMS (BY LETTER) THAT'S WHAT YOUR GETTING. SEE WHAT HAPPENS... DIDDLY I SQUAT.

[ojpyro]

Thanks guys, your feedback is very much appreciated and has gone a long way to ease my worries. I will be writing to Cabot shortly.

 

Brigadier2JCS, you mention that there may be a problem with the paperwork, any examples or is there any way I can find out if there is any problems?

[BRIGADIER2JCS]

Well you can send a CCA request to see if Cabot have a copy of the

loan agreement.

There is a £1 statutory fee and they have 12 + 2 days to comply,

use the template letter from the CAG library for this, it should be

addressed to The Compliance Manager.

 

For Santander, a Subject Access Request made under the Data

ProtectionAct 1998, this requires them to provide you with ALL

the data the bank holds on you, so will see any penalty charges,

PPI etc.

 

You may or may not get a copy of the agreement with a SAR as the

ICO says that although they might expect it to be provided there is

no specific obligation to do so.

 

There is a £10 statutory fee for a SAR the creditor has 40 days to reply,

there is a template in the CAG library for you to amend to suit your case.

 

The SAR should be addressed to the Data Controller at Santander.

I suggest you send this by recorded delivery so you can check the

date they receive it.

Come back if you need help.