Cabot bought unenforceable debt

[MrSponge]

Hello,

 

I have a default in Aug 2009 with a credit card with a balance of £17000.

 

There is no CCA with the OC and so the debt could not be pursued.

 

This debt was subsequently sold to Cabot despite no CCA in Feb 2011. I told Cabot to get lost as there is no CCA and they can't enforce it. They obliged and got lost.

 

Cabot said something along the lines of 'oops they didn't know that there was no CCA and bought the debt from the OC in good faith'. They left me alone and didn't pursue the debt - that's a couple of years ago now. Saying that they are still updating my credit file which is showing the default and the outstanding balance.

 

My question is this:

 

I know that DCA (Cabot in this case) buy these debts for very little money, and I was wondering if there is a way I could offer to make some payment, on the condition that they remove the default. As it stands they won't get a penny from me and there is nothing they can do about it, however if I make an offer (perhaps 10% of the debt) on the condition that they remove the default on the account, is that something that would that work?

 

I have no experience in this so if someone could tell me if there is a way to go about this, that would be great.

 

Thank you very much in advance

 

MrSponge

[AndyOrch]

hi MR S

 

You state they are still updating the Default Marker.Any default can only be placed and shown for 6 years on your CRF,s ...you only have a further 2 years before this one drops off.Making any payment will not reduce or remove the marker I personally would just bide my time

and put the money to better use.

 

Regards

Andy

[MrSponge]

Sure Andy, that is an option. I was just wondering if it might be possible to make a token payment of say £2000 to get the default removed. I was interested in getting a mortgage and finding it very difficult at the moment.

[AndyOrch]

Very very rare for a DN marker to be removed (unless placed and proved in error) Legislation provides that it must be recorded and shown for 6 years in line with the ICO guidelines.

 

Thread moved to General debt Issues

[MrSponge]

Hello,

 

I have some more questions that came to mind:

 

1. Does the whole defaulted account get removed?

 

2. I have another default with another lender, where I am paying £30 a month, will that also get removed after 6 years? What about my £30 a month payment? How will that get recorded if the whole account gets removed?

 

3. Who actually removes the defaulted account? Is it the DCA or is it the credit ref agency by way of an automated process?

 

4. I have another account that had an arrangement-to-pay. The AP ended a couple of years ago and went back into good order with normal payments resumed. Would this be considered as bad as a default in terms of applying for credit?

 

Thanks again for your help

 

MrSponge

[Old Cogger]

all they will do is marked partially satisfied or if paid in full settled is the norm, to get one removed is very rare,

[renegadeimp]

Just ignore it. No matter what you do now, the marker will still be there for the remainder of the 6 year period. If you choose to pay the DCA, then you have just wasted that money.

[lookinforinfo]

Hello,

 

I have some more questions that came to mind:

 

1. Does the whole defaulted account get removed? Yes nothing will show on your redit file for that debt.

 

2. I have another default with another lender, where I am paying £30 a month, will that also get removed after 6 years? What about my £30 a month payment? How will that get recorded if the whole account gets removed? The 6 years will start from when that debt is paid off and not before.

 

3. Who actually removes the defaulted account? Is it the DCA or is it the credit ref agency by way of an automated process? It should be the DCA if they have bought the debt. But you sometimes have to remind them.

 

4. I have another account that had an arrangement-to-pay. The AP ended a couple of years ago and went back into good order with normal payments resumed. Would this be considered as bad as a default in terms of applying for credit? It would count in your favour that you had resumed normal payments however in the current climate any derogatory data on your file would make it difficult to obtain credit. The two defaults above would make it very difficult to impossible. MrSponge

 

Sorry not to be more positive but lenders are being ultracautious at the moment and only paying off a debt at £30 per month would not instil confidence in a potential mortgage lender.[ Lenders would take the view that If you cannot afford more than £30 how will you manage a much larger monthly payment? Or, to look at it another way, if you can afford more than £30 and you are not paying it, then you don't have a high regard to handle your debts in a manner that creditors would want.]

[Desperate Daniella]

Agree with the others. Settling with Cabot won't remove the markers so really I think you should hold out for the two years.

 

BTW, which credit card is this?

 

DD

[paulwlton]

It may be worth offering a full and final on the agreement they scrub your credit file. It would also put the matter to bed and remove the threat of enforcement further down the line.

[MrSponge]

Thanks for the response lookinforinfo.

 

I thought that default accounts get removed from the date of the default, not the date that the debt is paid off (???) Please correct me if I'm wrong.

 

The reason I'm paying £30 a month is because its a credit card and that is like the minimum payment.

[MrSponge]

Agree with the others. Settling with Cabot won't remove the markers so really I think you should hold out for the two years.

 

BTW, which credit card is this?

 

DD

 

The CC is with Barclaycard. It was taken out in 1998.

[MrSponge]

It may be worth offering a full and final on the agreement they scrub your credit file. It would also put the matter to bed and remove the threat of enforcement further down the line.

 

That's what I was wondering about when I posted this thread

[Desperate Daniella]

If Cabot haven't been in touch for two years then it's likely they cannot get the original agreement from Barclaycard. Was it always a Barclaycard, or something else, like Goldfish, which got taken over by Barclaycard?

[MrSponge]

If Cabot haven't been in touch for two years then it's likely they cannot get the original agreement from Barclaycard. Was it always a Barclaycard, or something else, like Goldfish, which got taken over by Barclaycard?

 

It was always with Barclaycard when I took it out in 1998. I think Cabot are very well aware that there is no CCA. I waited for 8 months for Barclaycard to produce it and they couldn't.

[MrSponge]

If Cabot haven't been in touch for two years then it's likely they cannot get the original agreement from Barclaycard. Was it always a Barclaycard, or something else, like Goldfish, which got taken over by Barclaycard?

 

Could you tell me if default accounts get removed 6 years from the date of the default or 6 years from the date that the debt is paid off? lookinforinfo replied to my post (see above) says its 6 years from the date the debt is paid off.

[Desperate Daniella]

I think you can assume they don't have it, or that it doesn't contain the prescribed terms so they won't want you to see it.

 

I am now getting muddled. I thought the default dropped off six years after the last time the debt was acknowledged, by payment or in writing. At the moment you have about two and a half years to go before it should drop off. If you acknowledge the debt to Cabot the six years may start again, and they may not agree a full and final settlement at the figure you suggest.

[MrSponge]

I think you can assume they don't have it, or that it doesn't contain the prescribed terms so they won't want you to see it.

 

I am now getting muddled. I thought the default dropped off six years after the last time the debt was acknowledged, by payment or in writing. At the moment you have about two and a half years to go before it should drop off. If you acknowledge the debt to Cabot the six years may start again, and they may not agree a full and final settlement at the figure you suggest.

 

There are 2 CC's here:

 

With Cabot, yes the default date was Aug 2009 and no payment has been made since Jan 2009.

 

With the other lender, I am making a payment of £30 a month to bring the balance down, and that was also a CC that default date also being Aug 2009.

 

I thought regardless of whether payments are made or not, defaults got removed 6 years from the default date?

 

I think its write-offs that required no payments or acknowledgement of the debt to be made for 6 years?

[paulwlton]

The default would have been entered by Barclaycard so pointless asking cabot to scrub your credit file. Because you've continued to make payments the balance is far from being stat barred so it may be best to offer a full and final to put matter to bed.

[renegadeimp]

It may be worth offering a full and final on the agreement they scrub your credit file. It would also put the matter to bed and remove the threat of enforcement further down the line.

 

They cant enforce it. Ever. Unless they get a copy of the original CCA, which doesnt exist anymore.

[paulwlton]

They cant enforce it. Ever. Unless they get a copy of the original CCA, which doesnt exist anymore.

 

Could you provide case law to assist you here?

[MrSponge]

I think this thread has got all muddled.

 

The original post says Cabot bought the debt (£17000) off Barclaycard, and who are now updating my credit file. The default date was Aug 2009 and I am not making any payments to them. I am not looking to getting the debt stat-barred, I am just asking about when the default would get removed.

 

I then have a 2nd CC with Halifax which also defaulted around the same time in Aug 2009, however in this case I have made an arrangement with them to pay £30 a month to bring the balance down, to avoid them taking me to court as they do have a CCA.

 

What I want to know is in each of these cases when will the defaults drop off? I have been told time and time again it will be 6 years from the default date in both these cases, regardless of whether payments are being made or not!

 

If I am wrong then please correct me!

 

Thanks

 

MrSponge

[paulwlton]

I think this thread has got all muddled.

 

The original post says Cabot bought the debt (£17000) off Barclaycard, and who are now updating my credit file. The default date was Aug 2009 and I am not making any payments to them. I am not looking to getting the debt stat-barred, I am just asking about when the default would get removed.

 

I then have a 2nd CC with Halifax which also defaulted around the same time in Aug 2009, however in this case I have made an arrangement with them to pay £30 a month to bring the balance down, to avoid them taking me to court as they do have a CCA.

 

What I want to know is in each of these cases when will the defaults drop off? I have been told time and time again it will be 6 years from the default date in both these cases.

 

If I am wrong then please correct me!

 

Thanks

 

MrSponge

 

6 years after the default was registered

[renegadeimp]

OK. Look at it this way. There is a debt for £17000. Barclays sold it. That alone says there is something wrong with the debt. Upon chasing up paperwork there is no CCA, meaning the debt is unenforceable, hence the reason why Barclays sold it on. If they had the paperwork, they wouldnt have sold it, they would have gone straight to court for that amount.

 

Of course, the DCA's could still harass the OP for the debt, but it would be completely pointless as they would be in violation of their credit licence, and would also get nowhere, as the OP knows it would never go to court. The only thing that would happen is that they would mark the Credit file, which they have. It only has 2 years left to run ( DCA STILL cant do anything), and after that the DCA would be on a pointless exercise and be risking their licence for harassment, chasing unenforceable debts etc.

[MrSponge]

6 years after the default was registered

 

Thanks, just wanted that confirmed! i.e. regardless of whether payments are being made or not into a defaulted account, the default gets removed 6 years after the default was registered!