Cabot Financial say SB runs from Default Notice date?

[steady82]

Hello everyone

 

i need some help here..

 

i had this credit credit during my uni days which i could not pay back..and then i moved on and life moved on...

 

I received a letter from cabot finanical about 5 weeks back asking for money back.

 

I know for sure that the last payment made for this account was definitely more than 6 years ago.

 

And i have never made any acknowledgment for this account since then.

 

Therefore, it is technically statute barred.

 

I had sent them a SB letter about 3 weeks back.

 

They have written back to me saying that this account is Not SB

because the default notice issued by the credit card company was on March 2008

and the limitation period runs from that date therefore they are claiming that this is not SB.

 

Please suggest what should i do now?

 

It is not a large amount and i can stretch a little bit to pay it off (may be not in full but at least 70% of it)

but i want to make sure that i follow the right course of action here and they are definitely the right owners of the account.

 

I am not sure how to proceed from here.

 

Thanks

 

Steady

[fkofilee]

Ooooo no... thats not true. Its 6 years from the last date that payment was made.

Crapbot still trying every trick in the book.

 

You are right, it would be SB by now, providing last payment was made before Nov 2007. Tell them they are wrong and they need to get their facts straight and you will be fine.

Please dont be deterred by this. This is them lying to get you to pay.

 

Its inscribed in law that the SB date is 6 years from the last payment put on the account.

[dx100uk]

typical cabot spoofing tactic

id send a copy of that letter to trading standards and the OFT.

 

 

they know the rules ful lwell

but sadly still try to fleece people on debts they DO NOT OWE

 

 

dx

[Sidewinder]

Its 6 years from the last date that payment was made.

 

Its inscribed in law that the SB date is 6 years from the last payment put on the account.

 

Not altogether true

 

- a debt becomes SB six years after the cause of action,

 

ie the point at which a creditor could have first taken legal action to recover the debt.

 

In most cases the creditor would not be able to sue immediately

 

but only after payments had been missed and recovery action started with could have included legal action.

[steady82]

Not altogether true - a debt becomes SB six years after the cause of action, ie the point at which a creditor could have first taken legal action to recover the debt. In most cases the creditor would not be able to sue immediately but only after payments had been missed and recovery action started with could have included legal action.

 

So as per Sidewinder's post above; cabot might be right ??!!

 

Please suggest how i should proceed further on this.

 

Thanks

[havinastella]

What was it for. May a CCA request will stall them for a few weeks.

[fletch70]

What exactly did your statute barred letter say, it could be that in it you admitted the debt which if it was not SB then could reset the clock.

 

My understanding is that the cause of action on a credit card is the date of the first missed payment , usually about 1 month after the last payment.

 

So when exactly did you make the last payment?

 

If it all comes tumbling down and you find you have reset the SB clock I wouldn't even think about offering 70% , start off at more like 10-15%

 

Meanwhile as suggested get a CCA request off

 

http://www.bdl.org.uk/images/25_EW_NDL_Liability%20for%20debts%20and%20the%20limitations%20act.pdf

[steady82]

I sent them the SB letter because i know for sure that the last payment made by me on this account was more than 6 years ago. I will do the CCA next week.

But this Crapbot have replied back to me saying that ' It is not statute barred because a default notice was issued by Credit card company in March 2008 and the limitation period runs from that date'

[fletch70]

I have just read my Crap 1 T&C's and it talks about giving 1 months notice after the first missing payment , I would take that as being payment due date 1/11/07 then cause of action would be 1/12/07.

[Peterbard]

Yes sidewinder is correct. The SB date commences on the cause of action (section 5 SOL) , this is when the creditor is entitled to demand full payment of all sums due under the contract, this would be the default date plus 14 days fro a regulated agreement.

 

Thereafter the date can be reset by a payment or acknowledgment of the debt(section 29)

[Sidewinder]

First things first, don't under any circumstances go offering a settlement

(unless you particularly want to get into the territory of formally acknowledging the debt)

or have any contact with them over the phone under any circumstances.

They will try to tie you up in knots.

 

Personally I would sit tight and do nothing for now and see what turns up next

- you probably have a couple more threatograms to come before they consider issuing a claim.

 

Depending what that may be, the next course of action would be a CCA request as suggested above,

and then there may well be a need to make a SAR request to the original creditor to establish precisely

when the last payment was made and when a default notice was issued.

There may even be scope to reclaim unlawful penalty charges that were put on the account.

 

In short,

you may well be able to get across the SB line using perfectly lawful stalling tactics if that is what you wish to do,

however if you either decide, or are forced to go down the route of offering a F&F settlement,

bear in mind that Crapbot will have paid absolute peanuts for the account

and you shouldn't be going anywhere near the amount that they are claiming.

[Desperate Daniella]

Whatever the arguments over last payment date, last acknowledgment date and the cause of action, the SB clock does not start when a Default is placed on the account six months after that. You are probably safe if your last payment was in the October and you completely missed the November 2007 payment.

 

Defaults can go on at any time and some creditors are quicker off the mark than others so it would not be equitable at all for the six year clock to start ticking six or more months after the last payment on the account.

 

Cabot are of course making this up to try and get money from you and once you have checked the final payment date I would certainly report them.

[Peterbard]

Whatever the arguments over last payment date, last acknowledgment date and the cause of action, the SB clock does not start when a Default is placed on the account six months after that. You are probably safe if your last payment was in the October and you completely missed the November 2007 payment.

 

Defaults can go on at any time and some creditors are quicker off the mark than others so it would not be equitable at all for the six year clock to start ticking six or more months after the last payment on the account.

 

Cabot are of course making this up to try and get money from you and once you have checked the final payment date I would certainly report them.

 

Yes of I was referring to a default notice under the CCA of course(note the note on a CRA).

Before one of these an account cannot be terminated on default, and only then can repayment of all sums under the contract be demanded, this would be the start date for the SB term.

This may be after three missed contractual payments it may be later it depends on when the creditor decides to terminate and enforce the agreement. If the OP has kept correspondence a good guide would be the first date that the creditor demanded full payment of the account as opposed to just arrears due.

[Desperate Daniella]

There are lot of different interpretations on the forum about this.

 

I would argue that if I have asked for my alleged credit agreement and they cannot supply it within the 14 days then I can at that point say I no longer acknowledge any debt and my six years starts from then. Or that the debt was last acknowledged when I last made a payment.

[fletch70]

It is a whole can of worms this one. DD I can not agree that it is from last payment but until today i had thought it was from the first missed payment. However even if the company sent a DN the day after the payment was missed there would still be the remedy period before the clock started because they could not terminate and issue proceedings until then.

 

If it were me I would be blagging this one for as long as I could, sending the CCA request and generally doing what I do best which is being a pain in the ****

[renegadeimp]

Could always give the OFT or whatever regulator is in charge, and ask them for complete clarification if you are still confused.

[Desperate Daniella]

It is a whole can of worms this one. DD I can not agree that it is from last payment but until today i had thought it was from the first missed payment. However even if the company sent a DN the day after the payment was missed there would still be the remedy period before the clock started because they could not terminate and issue proceedings until then.

 

If it were me I would be blagging this one for as long as I could, sending the CCA request and generally doing what I do best which is being a pain in the ****

 

Sorry, fletch, I stand corrected. I meant the first missed payment.

 

As you may have realized from some of my posts on other threads, I really enjoy being a pain in the **** to various DCAs/Debt Buyers and have had one or two running for cover. (And writing off lots of money.)

[Desperate Daniella]

Could always give the OFT or whatever regulator is in charge, and ask them for complete clarification if you are still confused.

 

Have they actually got one? There are so many conflicting views all over the forum. (I'd argue anyway. )

[renegadeimp]

The only response you really need is that of the regulators viewpoint. The same viewpoint that has been repeated here over and over ad infinitum. But if you are still unsure, then thats the way to go

[fletch70]

I suspect the OFT would say it is up to the courts to interpret the law.

 

Renegade so many viewpoints have been given which one would you suggest

1) Last payment as suggested by the brig

2) First missed payment

3) Date of default as suggested by mapquest

4) Formal demand for payment

5) Termination if account

6) Something else

[renegadeimp]

Go talk to national debtline. They should be able to give you a definite answer.

[renegadeimp]

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

[fletch70]

DD im with you on being a right royal pain to dcas and such like. Of course i try to fight battles i can win and have had debts halved after complaining to the fos. Saying that i still can not afford to pay them so i will sit it out.

[fletch70]

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

Even their fact sheet is not certain.

Are you nailing your colours to the mast and coming down on one side or the other ?

[renegadeimp]

You do understand that SB date is not the same for every kind of debt? Its not a one size fits all mechanic.