MBNA now cabot dlc fire

[Deb T]

Some of the previous correspondence to me from Cabot was suspesion of interest if payments were maintained etc.

 

As of yet they have no provided me with a 14yr old credit agreement from the original creditor.

 

My account started at 4k, last balance check is Cabot have me at 10.4k

 

I have always paid cabot but left them alone until recently when sending them a request for a copy of the original credit agreement.

 

On my annual statement there are entried for 2.1k and 2.5k as sales invoices against my balance.

 

In some of their correspondence they state that they reserve the right to add their interest to an account should it not be maintained as per my 'agreement' with them.

 

I have never made an agreement with them, I simply offered the original creditor an amount which they never replied to but I paid them and when the OC charged off the account they passed it on to Cabot and I simply continued to pay them....but no agreement with them.

 

There is no credit agreement yet, there is nothing from me ever to say I agree terms with Cabot and yet here they are attempting to collect on the amount owed and at the same time add stupid charges.

 

What next? I've stopped paying them and the account is in dispute but they've been reporting the extra amount they are trying to say I owe to the various credit agencies?

[vjohn82]

Why oh why are you paying interest? It can only be charged in two instances that I am aware of:

 

1) In accordance with a written contract

 

2) Upon the order of a court under s.69 of the County Courts Act

 

As there is no written contract (upon the termination by the creditor) there is no interest that can be charged by Cabot.

 

No charges either can be levied in the absence of a written agreement and even these charges must be proportionate.

[Deb T]

Thanks for coming back to me...

 

Just to clarify, my account prior to default with the original creditor stood at £4210 ...I offered to pay them a particular amount each month as I could no longer maintain the original payments on the credit card. I didn't hear anything from them but I maintained the payments (5 years+ ago) but then heard from Cabot 4 years ago who said they'd taken over the account. This was pre-cag days for me.

 

I continued the monthly payments to them and they wrote saying interest was suspended if payments were maintained....I may have missed one ot two along the way but only by the occasional date overlapping etc..but regardless.

 

Checked my credit file last year and cabot had me down as owing 8.5k ...I left it alone for a particular reason but then this year sent off a cca request which has not 5 months on produced an agreement (it was 14 years ago from the date I had the credit card given to me by the OC)

 

In any case, I've put the account in dispute and when I check my credit file it now shows me as in default to the tune of 10.4k ...

 

I have some correspondence from them where they state they're adding interest if the agreement is not kept up and so on. I'm reasonably sure they cannot do this but even if they could they've never told me me any terms and have not produced a credit agreement and as the account has been paid since I wrote to the OC all them years back then it's just carried on etc.

 

Cabot are out on a limb, I'd like to know what I can now do against Cabot, I'm good to go against them now, the original default fiigure would be down by half now had it been continued with out cabot adding etc. In my estimation they've overcharged me/added interest to the tune of just short of 8k.

 

Do I take them to court or?

[harrassed senior]

Just had similar from them today myself, original balance on card was around £2000, now up to £8000 - Cabot have sent me statements to show they are adding interest. They can dream on:p

[vjohn82]

Some letters may well be useful at this stage if you can scan them up?

[Deb T]

Ok, I'll scan them on the morrow vj, I have several.

 

and yup HS, that's about the size of it, but when they're reporting it to a credit ref agency it doesn't look good and makes my indebtness look ever worse than what it already is.

[veryweary]

I continued the monthly payments to them and they wrote saying interest was suspended if payments were maintained....I may have missed one ot two along the way but only by the occasional date overlapping etc..but regardless.

 

 

If your account has been defaulted and terminated then no futher interest can be added, unless as VJon said the agreement you had allowed for this, or a Judge in deciding a case awarded them interest and normally they don't if its less than £5000 I think. Most credit agreements didn't, allow for interest to accrue after default.

 

I've seen some threads about more recent GE Capital accounts where this did form part of the agreement, but obviously yours at 14 years old isn't one of these.

 

They can add as much interest on paper as they like but it doesn't mean they will ever get it. Seems to be a habit of theirs on reading other Cabot threads. Makes me wonder if the reason for it , is that it inflates their book value and makes them look a better bet when seeking future investment allegedly;)

 

If they don't come up with your agreement they aren't going to get paid anything never mind their imaginary interest. Strangely Cabot haven't added 1 penny to my OH's alleged and disputed account. But they've done a whole load of other strange and wonderful things:eek:.

 

One day Cabot will disappear up its own derriere and what a nicer world it will be.

[Seminole]

It's very simple actually. The Cabot model is to buy debt for a fraction of its face value and then try to collect the full face value from the victim. Not satisfied with that, they try to add interest to make even larger profits. My guess is that they don't base these interest charges on the original contract but on their assessment of whether someone will pay them. In other words, if they find someone who's willing to pay them, they'll take the p1ss.

 

I don't think there's an awful lot you can do about this (short of getting a solicitor involved). You could try getting Trading Standards to intervene on your behalf. Alternatively you could challenge the basis of the balance shown on your credit report with the CRA. In doing so you could say that you recognise that Cabot can report a disputed debt to the CRA but the amount shown is wildly inaccurate because of extra-contractual charges added by Cabot. I don't know if you could get anywhere with this but I'd give it a go.

[Duffers Mum]

I'm just going down this route with Crapot...they added interest from the moment they bought my debt £80+ for one month and I was making regular token payments to the original creditor, they have sent me, in their own words, a Reconstituted Agreement which has many flaws which I don't want to mention due to prying eyes, but let's say its rubbish, I've also had a letter stating that now they have complied with my request they can get a CCJ. I've not paid them a penny and have no intention of...I've ignored their last letter and the shiny payment card they sent me. I should also add I've a right old ropey DN from the original creditor. As the original creditor has sold the debt on, does this mean they've terminated the agreeement. I don't really understand all this termination stuff.

 

I'm appalled that they can add all this interest to people's debts, I wonder if they do in the hope of upping the balance so its enough for some dopey judge to allow them to apply for a charging order?

 

Hope you get it sorted and will be following with interest. Good luck

[Deb T]

Anyone got one to hand? Or have sight of one? Does it contain anything within it that allows post termination for costs/interest to be passed on to an agent they assign to collect the debt or even when assigning it full title?

[MARTIN3030]

Pm sent

[victoria_siempre]

Hi Deb

 

I have an application form 1996 that they sent me in response to a CCA request.

 

On the back are T&Cs. '15. General (vii) we may assign our rights and benefits of this Agreement at any time.'

 

They also sent a separate 4 page T&C, footnoted MB 09/06 which contains significantly different T&Cs.

 

Hope this helps

 

best wishes

 

vic

[Deb T]

Thank you Martin, exactly what I was after...

 

Victoria, When (if) did you default on your own agreement? As far as I'm aware and somebody correct me if I'm wrong but the T&C can vary, often do vary but they must

be relevant in a default/termination sense to those at the time of the default/termination ...as in you can hold an agreement with them from 1996, the t&c can and often

are updated periodically but at the point you are defaulted/terminated the t&c must be the ones that were in place a the point of the account being defaulted/terminated.

 

if your account started in 96 and defaulted in 2001 and they sent you a t&c from 2006 it stands a chance they're not applicable etc.

[victoria_siempre]

Hi Deb

 

I stopped paying this year due to redundancy.

 

The T&C I referred to were the allegedly original dated 1996 - sorry should have said footnoted 09/96 NOT 09/06.

 

They also sent current T&C.

 

There are clear contradictions between the T&C on the back of the Application and the separate 09/96 which is good I think.

 

Best wishes

 

vic

Edited October 27, 2010 by victoria_siempre
cock up

[Deb T]

I know others here are and have experienced exactly the same as myself as in Cabot take over a debt either as a collection vessel or having it assigned to them by way of them purchasing it...and then Cabot go on to add huge amounts of interest to the debt.

 

The problem is, Cabot appear not to have the correct documentation/credit agreement/assignment notice to be able to do this ....so on what grounds are they doing it?

 

I asked them on what grounds which they have point blank refused to answer.

 

I asked them to produce any agreement/documentation that enables them to charge the

interest they apply to the account? They have refused to answer.

 

I asked them if there was any truth in the notion that by adding interest to accounts where they have been unable to supply ANY documentation it increases their company portfolio and may show for their own 'books' that things are looking healthy...They have refused to answer.

 

I asked them on what grounds are they updating an individuals credit file (mine on this occasion) inclusive of the interest they've added when they do not have ANY of the relevant documentation from the account (i.e from original creditor).? They refused to answer.

 

I suggested they remove ALL interest charges from my account with them pending them providing the relevant documentation for them to be able to add the interest. They have refused to do so by simply not answering my query or even responding to it.

 

Simply put they have no grounds to charge any interest on my alleged debt and by them doing so (adding interest) they are not being truthful or accurate when updating my credit file to the various CRA's

 

By reporting the increased amount on my credit file they are directly affecting my credit worthiness and which may affect any future applications I may make for credit/mortgage.

 

I believe Cabot are knowingly affecting my credit file with malice and I suspect there are many more out there that are or have experienced the same with Cabot.

 

I've had enough and have collected all the documentation I have to hand in regards to the alleged debt and Cabot's involvement and have supplied it to 'counsel' for their opinion. I'm waiting for it to come back.

 

Anyone else in the same boat care to add their voice to the thread?

[Bazooka Boo]

You have answered your own question Deb.

Unless they have the correct paperwork ie. the CCA or have been instructed by the OC, and have not bought the debt and all its rights, then they CANNOT simply add default charges NOR interest.

IF they were ever to take you to court for the alleged debt, then as long as you defended this they will not be able to enforce their own charges, there is simply no contract or agreement between you and them, they are either acting on behalf of or have bought the rights to your debt, if they have bought all rights to it, then they can only charge you interest and fees to which you initially agreed to under the OC, they CANNOT make it up as they go along.

 

The sole fact that they have been ignoring you, is IMO indicative of an extremely inept immature company who is chancing their arm and hoping they do not get caught out.

 

If they do not have a CCA then they should not be even looking at your credit file least of all marking it adversely! Let the ICO know, and hopefully get them the maximum fine of £500.000!

[ScarletPimpernel]

When you wrote, did you make clear that you were making a formal complaint? If so, they had a legal obligation to respond, providing you with a copy of their complaint procedure, and confirming if this was their final response - if it was, you can then go to FOS if not satisfied with Cabot's answers.

 

In addition, if you made clear that you were disputing the debt Cabot claim you owe, the OFT Guidance requires them to take steps to investigate your complaint, and suspend collection activity whilst they do it.

 

You can now make a formal complaint to FOS, and a report to the OFT. You can also contact the credit reference agencies and complain that the data they are reporting is inaccurate; and complain to ICO that Cabot are supplying inaccurate data. If Cabot have deliberately supplied false data that affects your credit you may be able to bring a claim for damages.

[Deb T]

I'll be taking it as far as I can that is for sure bazooka, they have taken liberty after liberty even though I have previously made them aware of their stupidity, to me they are now acting with impunity.

 

Yes Scarlett I made them aware it was a formal complaint and I also gave them ample chance to answer the questions put to them but instead of answering them they carried on asking for money.

 

They acknowledged the complaint but 18 weeks on and despite many reminders to them they have not responded other than to say we're still investigating....no timetables, no answers nothing and

everything I have sent them has been sent by Special delivery so I know they have them.

 

I've since raised complaints with the various such as ICO, CRA etc....All I'm now waiting for is the opinion from counsel and once in and if favourable I'll be seeking further advice with a view to

taking Cabot on at their own slimy game. They're all too keen to write you forests of paper when they want to speak to you or ask for more money but when you reverse the tables they go

quiet. I have them, I know I have them and whats more I suspect they know I have them..they've provided nothing but inaccurate data and accounts with my alleged account and have caused

me trouble on my credit file and with various other bodies....Now i want to address the issue.

[alfwithhair]

I know where your coming from here.

I too have been asking Cabot to substanciate their right to add over 4K to a 6K debt in 18 months for nearly 6 months now.

No CCA, sold whilst in dispute with the OC. MBNA had default on CRA, now it says CABOT.

Never received an annual statement from them, so can't see what the increase are, or how and when they are applying it.

Same as you formal complaints, the works, not one single reply regarding any letter I have sent, just one threatogram after another, then tried to burn me with FIRE.

 

Can't recall the number of times they have said legal action will be initiated, but it never does

[dx100uk]

they can do what they like matters not

 

eventually they will have to take it to court

 

then the judge will have a field day and you can seek compensation

 

as for reporting the balance to the cra's inc their unlawful charges/interest

i should think the cra need to justify why they are allowing this to happen?

 

put them to strict law upon where it says in any guidelines etc where they are allowed to show this unlawful balance when the co. doing it has no legal right to do so

 

outrageous!

 

dx

[Deb T]

They haven't as yet stated 'legal action may be taken' but the very first time they do I'll be using the CPR rules and then I'll start my own action against them.

 

I have enough ammunition to sink Cabot and most of it has come from them anyway. On one particular day they added a substantial amount of interest and yet

no correspondence from them either before or after the addition of the interest states why they have added it and the list goes on.

 

I just want counsels opinion back and then I'll be knocking at Cabot's door.

[NailPost]

Seeking counsel's opinion, that is a properly qualified legal person, may be a better bet than seeking the opinion of Caggers. You appear to have a pretty good case against one of the leading lights of the debt buying industry, a company which keeps many of the lowlife, bottom feeders in business. Taking them on legally may be of benefit to both you and Caggers generally but you need proper advice.

[:Boy:]

I am in a similar position. They have added £200 to a debt of £600 with interest amounts that do not add up. I then agreed to make monthly payments (as they would not take a settlement figure which I thought was fair), then checked my credit file (Experian) and this has never been updated with the correct amount. I then asked for a breakdown of the interest charges, they could not supply this, and I included a copy of the Credit file to prove that they have not updated it. To this they sent a letter stating the update the Credit files monthly (they do not) and that they are in there right to add interest. I stopped making payments and asked for all of the paperwork for my account, including the copy of the 'Default Notice' as the Default is in the name of Cabot (not the Credit Card companies name) that they apparently served me. July 2010 was the last letter sent, I have never received a reply.

 

I am now in two minds, either to file at County Court for an amount (that would cover the Default on my Credit file -I also add that this is the only bad credit I have- and my time and costs) or send them one more letter with my intention of what to do.

 

I am sure they are breaking the law by allowing incorrect data on my Credit file, and adding of unjust interest. If anyone could help with this I think it would be a benefit for all. I just can't believe the authorities allow a company like this to get away with it all of the time!

[harrassed senior]

If you want to see the paperwork they have then SARs' them.

[alfwithhair]

Crapbot has recently passed my alledged account to some outfit called 'CLARITY'

But interest is still being added by either them or Crapbot.

 

Still no sign of an annual statement which is required by law, still no response to where it says in a non existant agreement they can add interest.