Equidebt goes to the wall... Cabot steps in

[DonkeyB]

If securitzation were abolished, it would stop this industry in its tracks. Either that or a bloody good court case challenging the sale of already-securitized assets.

[alisindebt]

Wow, so they buy at 10% or whatever, add, charges, etc. So the bill escalates. What an easy way to make money. It's disgusting. I think there should be legislation to make them declare how much they bought the "debt" for.

[DonkeyB]

Ten per cent? More like four per cent.

 

The debt buyer has to pay tax on the profit made on the deal – so if they recoup 100%, and pay 10%, they pay tax on that 90%, subject to their collection costs (a system which, in itself, is open to abuse – and I can prove that. I know of a debt buyer that charges a nominal 12% interest, but often declares a third of that interest as ‘costs’ irrespective of the actual costs – and assigns the other 8% as ‘statutory interest’, so avoiding tax on 4% of its interest charges).

 

Now, where they pay that tax is also open to debate – if they are registered offshore but collect that money in the UK, via a UK agent, surely that counts as doing business in the UK and should be taxed as such? Google-type arrangements...

[alisindebt]

Very interesting. So, if a company is in another country, are they legally able to collect? What I mean is, they can ask for money, but if a person does not pay, are they to take court a on in the UK?

[ScarletPimpernel]

Very interesting. So, if a company is in another country, are they legally able to collect?

 

If a debt purchaser is offshore, they can own the debt, but they can only undertake collections activities if they have a UK consumer credit licence, because the act of assignment (the sale and purchase of the debt) makes them the creditor, and that requires a licence.

 

There are various ways they do this - one is for the offshore company to buy the debt, and have another company with the same owner with a licence act as DCA. Another is for the offshore debt buyer to appoint a UK DCA to collect.

 

Sales of debt often happen offshore too - a lot of MBNA debt was sold in Ireland to get around UK tax rules.

 

The more you look into the debt industry, the more filth you see. None of it's illegal, just morally and ethically questionable - except, of course where companies falsify records to try to make it appear in court as if the one company is the creditor when that isn't true, for example, or where huge US corporations refuse to disclose whether accounts have been securitized in a way that would make their UK operation come crashing down, because the actual owner of the accounts can't be a creditor in UK.

[ken100464]

Arrow paid 0.5p in the £ for some non performing portfolios last year. Thats £5 for every £1000 book value.

 

Its in their results just posted. It dont take much to turn a profit on a portfolio like that. Even the £1 a month brigade will put them in profit quickly.

[ScarletPimpernel]

Ah yes, Arrow - they have some sort of connection to the failed bank RBS, don't they?

[BRIGADIER2JCS]

Ah yes, Arrow - they have some sort of connection to the failed bank RBS, don't they?

Partly owned by one of the RBS investment funds.

[alisindebt]

Can we buy forthcoming debts of the Equithreat redundant staff for 0.5p in the pound? I'd chip in for certain.

[alisindebt]

I forgot to mention, I would also act as a collections manager, using the same techniques as them.

[CAGareBrilliant]

I've had a letter today from Lowell Portfolio (laughably pompous name) about my Co-Op debt of £10K+, formerly managed by the above defunct Equidebt, which as a long-term JSA unemployee, I've been rape-aying at £1 a month. The letter demands I call them on their expensive 0844 number to arrange transfer of my payment.

 

Is there any mileage in the idea that since Equidebt have gone, that's it? Why should I have to do this for them? Shouldn't they be obliged to take over my payment from Equidebt?

 

One even more absurd thing is that Equidebt in turn purchased this debt from another DCA!

 

Should I really have to call them at my expense to arrange new bank details for my humble one pound a month? Couldn't they just post me the new bank details ffs???

[renegadeimp]

If your debt has been through multiple DCA's, then why on earth are you paying anything? It's plainly obvious your debt is bad, thats why you are being passed around each DCA so they can get something out of you.

[BRIGADIER2JCS]

I've had a letter today from Lowell Portfolio (laughably pompous name) about my Co-Op debt of £10K+, formerly managed by the above defunct Equidebt, which as a long-term JSA unemployee, I've been rape-aying at £1 a month. The letter demands I call them on their expensive 0844 number to arrange transfer of my payment.

 

Is there any mileage in the idea that since Equidebt have gone, that's it? Why should I have to do this for them? Shouldn't they be obliged to take over my payment from Equidebt?

 

One even more absurd thing is that Equidebt in turn purchased this debt from another DCA!

 

Should I really have to call them at my expense to arrange new bank details for my humble one pound a month? Couldn't they just post me the new bank details ffs???

We were made aware sometime ago that Cabot had acquired a portfolio of Equidebt accounts.

 

No you do not have any obligation to contact them.

 

They have to honour the payment arrangement in place!

[CAGareBrilliant]

If your debt has been through multiple DCA's, then why on earth are you paying anything? It's plainly obvious your debt is bad, thats why you are being passed around each DCA so they can get something out of you.

 

I presumed I had to maintain the CCJ payment, otherwise I would end up having High Court bailiffs door knocking 24/7. Not that I have much for them to take, but it's something. I also have a house (in negative equity) with a CCJ worthlessly attached to it. Am I wrong to assume they would go to bailiffs?

[CAGareBrilliant]

We were made aware sometime ago that Cabot had acquired a portfolio of Equidebt accounts.

 

No you do not have any obligation to contact them.

 

They have to honour the payment arrangement in place!

 

It is still being paid to the predecessor company to Equidebt!

 

I was thinking of emailing them and saying, "sorry, never heard of Equidebt, why are you bothering me?"

[BRIGADIER2JCS]

Yes you MUST pay according to the 'judgement order' the payment amount laid down in that order CANNOT be changed without leave of the court.

Do you know if Cabot have applied for the judgement to be transferred to them?

 

Please DO NOT stop making the required payment, keep your self in the right, it can only be of benefit to you and to the detriment of Cabot.

[renegadeimp]

I presumed I had to maintain the CCJ payment, otherwise I would end up having High Court bailiffs door knocking 24/7. Not that I have much for them to take, but it's something. I also have a house (in negative equity) with a CCJ worthlessly attached to it. Am I wrong to assume they would go to bailiffs?

 

Gotcha. You do have to maintain payments, but its doubtful it would go anywhere near bailiffs. Especially if all you can do is pay a token payment. Bailiffs are the final method the court uses and isnt likely to ever happen for you.

 

As brig said, you need to check to see if the CCJ has been transferred. If it hasnt, then you dont pay them a penny and only follow the courts payment advice. Meaning you continue to pay the OC.

[CAGareBrilliant]

Gotcha. You do have to maintain payments, but its doubtful it would go anywhere near bailiffs. Especially if all you can do is pay a token payment. Bailiffs are the final method the court uses and isnt likely to ever happen for you.

 

As brig said, you need to check to see if the CCJ has been transferred. If it hasnt, then you dont pay them a penny and only follow the courts payment advice. Meaning you continue to pay the OC.

 

Thanks, I didn't know this. How do I find out if the CCJ has been transferred please?

[BRIGADIER2JCS]

Thanks, I didn't know this. How do I find out if the CCJ has been transferred please?

 

Trustonline, there is a small fee but the CCJ will be registered there, just Google it.

[joesoap]

Mrs has a payment plan with Equidebt, should she keep paying to Equidebt (goes to their bank account) or wait until contacted regarding new, if any, payment details.

[alisindebt]

So sorry to hear that a good service to the community, "Equidebt debt" is going bust after threatening and harassing so many people, most of all are in vulnerable situations

 

 

I have a list of employees, or possibly ex employees, of Equidebt, who the seems losing their "good jobs" will find themselves in debt through employment.

 

 

Could I be amongst the first to offer them their own facility of offering a doorstep collector for their debts? I have able and will people available to do this. Our see could consider county court action.

 

what is it like to have the boot on the other foot?

[BRIGADIER2JCS]

Mrs has a payment plan with Equidebt, should she keep paying to Equidebt (goes to their bank account) or wait until contacted regarding new, if any, payment details.

Until you are notified of other arrangements I would say yes, or though Cabot may take some considerable time to get into action on the account they have acquired, if she does continue to pay I suggest keeping a very clear record of every payment made.

[joesoap]

Until you are notified of other arrangements I would say yes, or though Cabot may take some considerable time to get into action on the account they have acquired, if she does continue to pay I suggest keeping a very clear record of every payment made.

 

Cheers Brig.

[BRIGADIER2JCS]

Cheers Brig.

Ok Joe, stick to the agreed payment, it is not for her to find out who to pay.

[jos500]

Am new to the forum, I owe money to Equidebt, I assume this will now transfer to Cabot who again are a company I owe also. will i be contacted by either/or?

Is it a good time to try to make an offer to clear the Equidebt account?