Debt grow by £1000 in a month (cabot)

[lookinforinfo]

Have Cabot bought the debt? What was the debt for and how much was it before

Cabot got it-and when did they get it?

[lookinforinfo]

That will not be what they paid for it, but I imagine that you will recognise that

it is the outstanding amount owed before they bought it.

By law, Cabot cannot then add charges to the debt as that would put them in breach of the Consumer Credit Act.

 

As Nailpost said, if they have not produced the required documents by around

15th December, then they are not only in default, but yiy do not need to pay the ]

debt until they do locate the documents.

 

If they can produce them, your next step is to reclaim that part of the unlawful

charges that are included.

[lookinforinfo]

Flavio, send this to them,

 

Dear Sirs,

I am writing in furtherance of our earlier telephone call today.

I do not have a contract with you, nor have I ever set up a loan with you.

Therefore there is no contractual relationship that entitles you to add charges

or interest to this debt, especially one that you paid pennies in the pound for.

 

I would remind you of the article on the Office of Fair Tradings' website relating

to "the Collection of Debts". This is a highly relevant section that I suggest you

take urgent notice of-

 

"Furthermore, debtors should not be led or allowed to believe that they are legally liable to pay such

charges where this is not the case. Failure to act in accordance with these principles is likely to be

regarded by the Office as an unfair or improper business practice within section 25(2)(d) of the

Consumer Credit Act and thus relevant to the issue of fitness to hold a consumer credit licence."

 

Nor should I be penalised for your companys' inefficiency in tracing me.

 

Unless you write and confirm that both the interest and charges have been removed from my debt within 7 days, I will complain to the Office of Fair Trading

without further reference to you.

[lookinforinfo]

What I am saying is that it is the contention by the OFT in an earlier section

of the same report, that charges cannot be imposed on a debtor unless there

exists a prior agreement between the creditor and the debtor.

 

No such contract is in force here. They have bought a debt and been unable to

contact Flavio for three years.

 

I merely added the fact that to add interest based on the full amount of the debt

when they purchased the debt at a much lower price, could be further cause for

censure by the OFT.

[lookinforinfo]

Sorry, Andrew I don't understand the point you are trying to make.

[lookinforinfo]

Oh what a relief Andrew. I totally misread your previous post and thought you

had said that my advice to Flavio was wholly unsatisfactory.

 

Sorry to get you to explain yourself when we were singing from the same tune

all the time. LOL

 

 

Perhaps we should all be making stronger representations to the OFT objecting

to the fitness of some of these companies to hold a Consumer Credit Licence.

If the licence is taken from them, then they are not allowed to continue to trade.

 

Among the criteria that the Consumer Credit Act 1974 s25 [2][d] would consider

likely to remove the licence are

 

"engaging in Business Practices that appear to the Director to be deceitful or

oppressive, or otherwise unfair or improper [whether unlawful or not]"

 

and

"contravening any provision made by or under this Act, or by or under any other

enactment regulating the provision of credit to individuals or other transactions

with individuals."

 

So I feel that threatening their credit licence may well pull them back into line

quicker than other threats.

[lookinforinfo]

Why pay it back yet? As the amount is under dispute Cabot cannot chase you for the debt. In fact it may have been very wrong of RBS to sell on the debt when it did. But you will have to confirm to Cabot that the account is in dispute and they cannot claim against you until the dispute is resolved.

 

Once you have agreed with the bank how much they owe you, you have the choice

of getting a cheque from them or letting the bank and Cabot sort it out. Then pay

Cabot the balance. The ideal way to do that would be for you to get their bank address and account number and pay them through a bank by credit transfer.

 

Rest assured Andrew and and myself were fine and calm all the time.

[lookinforinfo]

Good news Flavio. Hopefully you will get to the bottom of that extra £1000 for a

start.

Still surprised at your concerns about Andrew and myself. All that happened was

that I was on a different page of the hymn book-silly me.

 

Anyway Andrew, now that I have found the page again this is my view, which

may be of help to Flavio also. when a dca buys a debt, the original agreement

will have already been cancelled. So there is no contract between the dca and

the debtor. Therefore the dca cannot charge interest since Flavio, in this instance

has not agreed to anything with them. Also, because there is no contract, there

is no facility in place for them to impose collection charges either.

 

If indeed,they have charged Flavio for interest and collection charges, then they

are in breach of the Consumer Credit Act 1974 , under unfair business practices

in contravention of section 25 [2][d]. OFT "Debt Collection Guidance 2003" expands

the argument. As the OFT can and do, revoke Consumer Credit licences on a

regular basis, I imagine that Cabot would not wish to fall out with them.

 

So to answer your question Andrew, yes I believe it is unlawful. And if it has given

you any extra ammunition, feel free to use it if you want.